week 4

Question 1

5 most common pricing strategy

Answer 1

1- cost plus: calc cost and markup, how big margin?
2- competitive pricing: set price based on comp, if similar product know what others doing
3- price skim: set high and lower, innovative products, risk copycat at lower price
4- penetrate: set low raise later, build base can make produyct stand out
5- value based: base product on what customer belive it worth

Question 2

pricing is accounting driven but ideal price includes

Answer 2

taking into account factors that some people over look

Question 3

acceptabel range of prices

Answer 3

between VC/ unit and value to customer

Question 4

competitive prciing types:

Answer 4

1- cooperative: match, may be too focused on others not own bus
2- agressive: you raise mine same, increase price distance, needs healthy margins
3- dismissive: if leading market or selling premium, without worry of others

Question 5

ways to gain advantage with value based

Answer 5

price better fit with customer view
more for stand out productsfind way to differntiate

Question 6

4 important market strategy

Answer 6

Pricing, product, promotion, place

Question 7

7 steps set right price

Answer 7

1- calculate direct cost: RM, duty, shipping
2- calculate cogs: cost of producing product, = direct cost+ general supplies+ frieght and OH, A simple way to calculate cost of goods sold is to add up your raw materials or product costs, wages, benefits, amortization expenses and factory overhead, OH includes: utility and supervision leave out admin/selling. rev- COG = GP
3- BE poin: indirect FC/ GM
4- dtermine markup = GP unit/ COG unit x 100
5- know what market bears
6- scan compeition
7- revisit as bus enviroemnt changing

Question 8

Hello fresh worked upstream with pull model suggetsing

Answer 8

no need for intermediaries usuing data driven approach,D2C

Question 8

removing intermediaries =

Answer 8

faster delivery times for fresh items, allowing capture product margin across whole value chain

Question 9

Porter generic strategy

Answer 9

1- cost leader
2- differntiate
3- focus: A- cost focus, differntiate ofucs

Question 10

what is cost leader strategy and what must company be sure of

Answer 10

get edge from: increase profit and reduce costs, about minimize costs, must be confident can mantain cheap, access to capital, effecient logistics, low cost base, risk of copy

Question 11

differntiate strategy and what does company need?

Answer 11

make product different than compitiors, better features, brand image customer value, needs good reserach and innovation

Question 12

what is focus and what must be ensured in market niche

Answer 12

used on niche markets and understand needs and dynamics within o But whether you use Cost Focus or Differentiation Focus, the key to making a success of a generic Focus strategy is to ensure that you are adding something extra as a result of serving only that market niche

Question 13

broad market risk for companies

Answer 13

compete against better resources company

Question 14

choose right strategy steps

Answer 14

1- o Step 1- SWOT analysis
o 2- 5 forces analysis to understand nature of industry you are in
 Competitive Rivalry.
 Supplier Power.
 Buyer Power.
 Threat of Substitution.
 Threat of New Entry.

o 3- compare SWOT of the viable strategic option with result of 5 forces then ask how you could use strategy to:

Question 15

what does leadership strat require and what about differentiation strat

Answer 15

very detailed internal focus on processes. Differentiation, on the other hand, demands an outward-facing, highly creative approach.

Question 16

profit equation

Answer 16

Profit= sale price x qty sold - (VC x qty produced) - FC

Question 17

Dynamic pricing

Answer 17

Mulitle price points based on several factors like peak service time, customer segements

Question 18

How to calculate Cogs

Answer 18

cost of producing product, = direct cost+ general supplies+ frieght and OH, A simple way to calculate cost of goods sold is to add up your raw materials or product costs, wages, benefits, amortization expenses and factory overhead,

Question 19

what does OH include

Answer 19

OH includes: utility and supervision leave out admin/selling. rev- COG = GP