. Create a profitable pricing strategy for the following product and situation. Select a price point...

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Operations Management

. Create a profitable pricing strategy for the following productand situation. Select a price point for your product andsupport/explain your strategy using marketing concepts. Based on aquick PLC (product life cycle) and new product adoption, how do youensure the optimal profit level is reached?
â€¢ You are an existing tech company in healthy financialposition
â€¢ Releasing a radical new tech product, patent pending
â€¢ Oligopolistic competition
â€¢ Your cost: $187.39 per unit
â€¢ Competitorâ€™s price for similar yet less innovative product:$249.99
â€¢ Approximate factory capacity: 20,000 units/week

Answer & Explanation Solved by verified expert

3.6 Ratings (268 Votes)

Let us first understand the quick product life cycle and its implications A quick product life cycle means the product will reach maturity level quite fast and then aftersales will start declining all this will happen in a relatively short span of time another fact is to note See Answer

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