Raise Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: RAISE PRICE, RAISE PERFORMANCE AND COST BY SMALLER AMOUNT
CHOICE 2 ISOLATE SEGMENTS: DUE TO A UNIQUE RELIABILITY
CHOICE 3 COMPONENT: CHANGE MAIN PRODUCT/IMPROVE EXPERIENCE/INCREASE SECURITY
| No. | SIC | Year | Notes |
| 1 | 3011 | 1993 | Goodyear introduced the Aquatred at $90, 10% more than the highest priced tire they sold before. They have sold 2 M since 1991. Escaping price pressure with a "value added" strategy – introducing a new or improved product that can be sold at a premium price. |
| 2 | 3011 | 1985 | Goodyear has aggressively pursued higher-margin niches, such as performance tires which are designed to provide a smooth ride and good handling up to the maximum speed of the car. In the late 1980s, Goodyear introduced the "Eagle GA," touring tire which was priced between $129-200 versus the average range of $50-60. Bridgestone followed Goodyear into this market and now manufactures tires for Porsche and Audi. |
| 3 | 7372 | 1986 | Microsoft has raised the price of its word-processing program to $450, from $375, in introducing a new version last spring. |
| 4 | 7372 | 2004 | In an effort to slow the spread of Linux overseas in developing countries, Microsoft is lowering its prices. In Malaysia, Microsoft teamed up with Intel to sell its software on brand-new computers in stores right alongside Linux-run computers. Microsoft sold its computers starting at $302 while Linux-run computers started at $263. However, many customers bought the Microsoft PC saying that they didn't mind paying for a good quality computer. Vendors say that most people aren't that familiar with Linux, either. |
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