Reduce Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: RETAIN CUSTOMERS

CHOICE 2 SEGMENTS: TARGETED COMPETITOR SEGMENT / PRICE LEADER AGAINST STANDARD LEADER

CHOICE 3 COMPONENT: CHANGE THE BENEFIT PACKAGE

No. SIC Year Notes
1 4512 1994 On Monday, Southwest announced a new $25 nonstop, one-way fare on all Monday flights departing after 7 PM. It says the promotion is tied to its sponsorship of Monday Night Football, but the affected flights are also flights with new competition from United.
2 7375 2003 In the face of increasingly aggressive price competition, AOL Time Warner Inc.'s America Online is quietly readying another dial-up Internet service that will be cheaper than its flagship $23.90-a month service. At the same time, low end firms offering dial-up Internet service for $9.95-a-month have been nipping at America Online's heels. In the first six months of this year, subscribers to discount Internet service provider United Online Inc. rose 17% to 2.6 million, while subscribers to America Online's services fell 6% to 33.3 million world-wide. Rival EarthLink Inc. has stepped up its TV campaign for its $10.95-a-month PeoplePC Internet service. EarthLink believes that discount services will eventually comprise 30% of the Internet access market.

<< Return to Choice 3