Cost-based and Competitive -based pricing Essay Example

Cost-based and Competitive -based pricing Essay When deciding which of the two methods will be more effective in our working field we took into consideration the advantages and disadvantages of the two methods. We have decided that the market in these days is too risky to use cost-based pricing for our product because it is hard to predict what is going to be the reaction of the purchasers and also we do not know how well the product is going to be sold. In case we fail to sell the predicted amount of our watches we will be forced to increase the price in order to save our company from bankruptcy . To sum it all up there are too many disadvantages in the usage of cost-based pricing. On the other hand such is not the case of competitive based pricing where disadvantages are fewer and risks not so dangerous. We have decided that the only risk when choosing this path is that if we set a price slightly higher than the production cost and the rival brands keep their share of the market we are surely going to bankrupt. Also competitive-based pricing offers a wide variety of sub-methods which can lead to higher profits. In this type of method we are closely observing the competition the quality of their products, prices they set and their ability to survive in a continuous price war and the introduction of a rival brand. We are not going to use a method of high pricing in order to imply that our product is very unique because there are too many illustrious competitors and it is going to be close to impossible to take over even a small share of the market while offering prices as high as theirs. We will write a custom essay sample on Cost-based and Competitive -based pricing specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Cost-based and Competitive -based pricing specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Cost-based and Competitive -based pricing specifically for you FOR ONLY $16.38 $13.9/page Hire Writer Our company is also against the policy of using predatory pricing. That is a very incompatible method for our brand of watches it is illegal in some countries and is again very risky if the competition is able to respond to this method. We do not have enough finances to pull this off. We intend to take over a large share of the market not momentarily but slowly and steadily. We are also not intending to create a market niche for our product. Our main goal is to offer a price slightly higher that our production cost and lower than competitor prices in order to make a small profit while establishing ourselves as a major watch brand. Conclusion: In conclusion, by considering all the information presented in the analysis and the specifics of the pricing we decided the usage of the competitor-orientated method for our product in order to obtain major share of the market. Of course, there are many advantages and disadvantages for choosing both the cost-based and the competitor-orientated method. Having in mind that our product is widely used we considered that this pricing strategy will help us eliminate a great part of the competition and satisfy our customers needs and wants, which are our aims. This pricing method will be in assistance for the fast penetration of our product on the market and in the field of business relationships. We run the calculated risk of bankruptcy if there are not enough sales and if customers are not convinced in the quality of our product. Otherwise, we will have the opportunity to approve on the market with a great brand name and a good company position. Bibliography Sources used: 1. Blythe, J. (2001). Essentials of Marketing (2nd ed.). FT: Prentice Hall. 2. Kotler and Armstrong. (2001). Principles of Marketing (9th ed.). Prentice hall. 3. Jobber, D. (2001). Principles Practice of Marketing (3rd ed.). McGraw-Hill Company. 4. Mercer, D. (1992). Marketing. Blackwell Publishers. 5. Baked, M. (1994). The Marketing Book (3rd ed.). Butterworth Heinemann. 6. Etzel, M. (2004). Marketing (12th ed.). Mcgraw-Hill/ David Brake. 7. Oliver, G.(1995). Marketing Today (4th ed.). Prentice Hall. 8. Blagoev, V. (2003). Marketing (2nd ed.). 9. The Product Life Cycle. (2008). Retrieved October 14, 2008, from http://www.quickmba.com/marketing/product/lifecycle/

Ethics Information Technology essays

Ethics Information Technology essays With advancements in technology such as the Internet and wireless capabilities, the act of storing photos, documents, and other personal information in the cloud has increased as well. In the past, we stored all of this data in physical form in our homes or offices or, at most, data was stored locally rather than on the internet. Since this data is no longer stored solely in your possession at a physical location, the security and privacy surrounding who can access this information and on what basis has become a concern. Different companies have their own policies regarding these issues as well as varying countries and territories having their own sets of laws and regulations on the matter. The reach of some of these laws has grown more and more distorted as new laws and regulations are enacted or altered. The most main-stream of these issues being the varying laws and transparency surrounding cloud storage privacy and data disclosure in the United States versus Europe. In the United States, the restraint or willingness to turnover personal information about a customer when it comes to cloud data varies company to company. For example, Google publicly releases a Transparency Report annually which shows details of when Google is forced to release data to investigators or any type or a government authority. The Patriot Act can forbid companies from disclosing information regarding these requests, Google's legal director, Richard Delgado explains, "The FBI has the authority to prohibit companies from talking about these requests. But we've been trying to find a way to provide more information about the National Security Letter requests we get. Google revealed that from July to December 2012 it adhered to more than 5,700 subpoena requests for information on individuals, nearly 1,900 search warrants and 758 court orders issued under the Electronic Communications Privacy Act seeking user data. Google said about 90 pe...

Critical evaluation of financial markets Essay Example | Topics and Well Written Essays - 4750 words

Critical evaluation of financial markets - Essay Example As stated by Bolbol & Omran (2003) in their paper on stock market emergence in Arab countries, a change in the technology and output mix of the indigenous industries will require the stock markets to allocate the resources to the industries more efficiently. This is because stock market activities provide an effective way to check the performance of the new firms in the event of any opinion divergence in the manner it is managed. At present in the Arab countries there are stock exchanges in Egypt, Algeria, Jordan, Morocco, Lebanon, Tunisia, Sudan, Dubai, Bahrain Abu Dhabi, Oman, Qatar, Kuwait and Saudi Arabia. Among these countries it is said that the Arab stock markets are dominated by five countries in terms of active and large markets- Jordan, Egypt, Saudi Arabia, Morocco and Tunisia. On 3 June 2006 a resolution was passed in Libya which paved the way for the creation of the Libyan stock market, set up as â€Å"Syarika Musahima† with capital strength of LD20 million split i nto 2 million shares of 10LD per share. The headquarters as per Article 2 of the resolution was decided to be Tripoli with main branch to be set up in Benghazi. Levine & Zervos (1996) used a dataset of 47 nations for the period 1976 to 1993 to highlight that the stock market liquidity is an important predictor of real per capita gross GDP growth, physical growth in capital and growth rate in productivity. This highlights the importance of the establishment of Libyan Stock Market for the authorities in Libya1 The banking system in the country comprises four major banks which are either fully owned or in majority ownership of the Libyan Central Bank. This list of banks includes Wahda bank, Jamahiriya Bank, Umma Bank, Sahara Bank and National Commercial Bank. These banks comprise nearly 90 percent of the assets related to the Libyan banking sector. All these banks have capital strength of minimum 100 million Libyan Dinars with the two of these banks on the verge of privatisation. The f inance availability in the local market is frugal. The Libyan banks provide limited number of financial products, loans are granted based on personal rapport and the managers of the public banks do not seem to have any incentives in portfolio expansion. Scarcity of financing is a major deterrent in local development impeding the completion of the projects and the initiation of new projects. Presently the banking system in the country is undergoing a modernisation program to improve the existing products or services, handling of non-performing assets, promotion of the use of payments in modes other than cash and establishment of new accounting standards2 Reforms in Libyan Financial Sector The Libyan government is jointly working with reputed international organisations to facilitate improved transparency in the financial sector, chalking out plans to bring in international credit rating agencies in the country to evaluate the domestic financial instruments and the recently