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. |
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