Netflix is a powerful example of using market penetration pricing to edge out a major competitor. Netflix: An example of penetration pricing. When choosing your pricing strategy, be sure to take any legal considerations into account. Predatory pricing removes the possibility of healthy competition and doesn’t benefit consumers. Then, the firm raises prices above market levels to recoup losses and maintain their position. Unchecked or unregulated, the firm attains a monopoly. A firm practicing predatory pricing lowers costs dramatically to drive competitors out of the market.
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