Reduce Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS
CHOICE 2 SEGMENTS: TARGETED COMPETITOR SEGMENT / PRICE LEADER PRICE AGAINST STANDARD LEADER
CHOICE 3 COMPONENT: CHANGE RELIABILITY AND PRICE TOGETHER
| No. | SIC | Year | Notes |
| 1 | 2262 | 2005 | In an effort to overtake Italian and French factories, which have powered the silk-furniture business for decades, Chinese mills have been pouring millions of dollars into new equipment and modern weaving techniques. That is leading to a sharp rise in the quality and variety of Chinese silk used for upholstery – at prices up to 80% less than similar offerings in Europe. Until now, the high price of silk has made it prohibitively expensive for most large manufacturers to make these pieces. The strength of the euro and China's lower labor costs have also helped Chinese mills beat their European counterparts on price. Embroidered silks from China can cost as little as $30 a yard, while similar fabrics from Italy can cost between $150 and $300. |
| 2 | 7372 | 1993 | Borland slashed prices up to 84% in an attempt to gain market share to replace Lotus as the #2 competitor (Microsoft #1). |
| 3 | 7372 | 2004 | Linux is the free alternative to Microsoft's Windows operating system. It is getting a boost in Asia as the Chinese government is starting to buy up its software because of its price (70% less) and resistance to viruses. Linux also gives access to its codes which allows customers to adapt it more easily to their needs. Microsoft is still the big leader in Asia but open-source software is getting a big push. |
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