Archives tagged: market share

Strategic Movements: July 2017

By Tim J. Smith, PhD July 19, 2017

What will Gillette do? As a starter, they cut prices by 12%. Good for consumers (and society overall), bad for investors. Competition’s role is to drive prices down and quality up. This is part of the reason private capitalism is better than state-controlled enterprise.

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Strategic Movements: May 2017

By Tim J. Smith, PhD May 16, 2017

Let me get this right: Grainger’s “pricing action” was to lower prices. The result was higher volumes and lower gross profits.  The aim was a clear market share take. And CEO Donald Macpherson is happy with the result?

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Top 6 – May 2017

By Tim J. Smith, PhD May 15, 2017

“It’s not that Penney has been sitting idly by. On the contrary, CEO Marvin Ellison has been moving quickly to try to…

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Should You Fight for Market Share?

By Kyle T. Westra May 15, 2017

Market share is not intrinsically valuable. In the world of business, good profit dollars are what has intrinsic value. Profit dollars, earned by serving customers, are the existential purpose of a firm. Anything else is merely instrumental.

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Complacency and Panic

By Kyle T. Westra April 12, 2017

Aspects of both complacency and panic probably sound familiar to most people who have worked at any number of companies. It doesn’t lead to a healthy company, either in its internal operations or its external relationships with suppliers and customers.

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Strategic Movements: March 2017

By Tim J. Smith, PhD March 8, 2017

Verizon engages in a price war surrounding unlimited mobile data plans. Though it hurts to lose revenue as a business, it’s great to have competition as a customer. This is all a suspected response to T-Mobile and Sprint impact on market share, and pricing approach of AT&T.

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Price is a Verb

By Tim J. Smith, PhD January 3, 2017

So what do executives get wrong about pricing? They treat it as a noun not as a verb. Treating price as a verb drives executives to define the culture, organizational structure, and process for making pricing decisions. Leading firms do this. Failing firms don’t. Executives, you have a choice.

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Strategic Movements: January 2017

By Tim J. Smith, PhD January 3, 2017

“Discounting becomes a drug that is hard to get off, and creates this basis for consumer to not trust regular prices,” Uri Minkoff.

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Will Bid for the Presidency Destroy the Trump Brand?

By James T. Berger July 3, 2016

Politico writes: “But as Trump the candidate has ascended, hitting the top of the polls and staying there thanks to a series of controversial statements and a groundswell of Republican populist support, the opposite has happened to Trump the brand.”

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Maintaining Pricing Excellence During Currency Depreciation

By Kyle T. Westra March 4, 2016

It is preferable to maintain or carefully increase prices in a clear, methodical way, only decreasing cost slowly and with much consideration. Careful analysis is required to take into account different SKUs, product lines, geographies, and customer segments, adjusting prices in the way that fits best each unique category.

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