Pricing Strategy Case Study

Pricing Strategy Case Study
Pricing Strategy Case Study: Typically, a business owner can choose from a variety of pricing strategies. The choice of strategy depends on information gathered during analysis of the internal (costs & profits) and external environments of the venture: Competition Economy Technology Natural Legal/Regulatory Socio-Cultural Simulated Business Scenario Avery is a business coach serving clients with small to medium sized businesses in a variety of marketplaces. Avery is preparing for an initial meeting with a potential new client, Stewart. Stewart operates a small traditional shoe store in Tuscaloosa, Michigan with a population of 125,000.
Avery quickly learns that the business has been in operation since Stewart’s father opened the doors in 1969. The success of the business was based on excellent customer service. At an early age, Stewart learned a 2-stage business philosophy:
Rule #1. The customer is always right
Rule #2. Re-Read Rule #1 Stewart took over the business in 2011 and since then, eCommerce has been eating away at sales volume and profits. He has longstanding relationships with 3 generations of Tuscaloosians but he is losing market share to local discounters and online sellers like Amazon and eBay.
During the initial consultation, and considering his excellent customer policies, Stewart insists that his only option is to revamp his pricing strategies. He informs Avery that she will earn the consulting contract if she presents 3 separate pricing strategies for Stewart’s consideration.
Question What pricing strategies can Avery suggest to Stewart in order to stop the decline in sales and regain lost market share? What other strategies can Avery suggest to Stewart to regain market share? Get Management assignment help.
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