Reduce Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS
CHOICE 2 SEGMENTS: TARGETED COMPETITOR SEGMENT / STANDARD LEADER PRICE AGAINST ANOTHER LOW-END COMPETITOR
CHOICE 3 COMPONENT: CHANGE THE LIST PRICE
| No. | SIC | Year | Notes |
| 1 | 3674 | 2000 | Intel is using its price cuts to boost demand for personal computers and to win back some customers who turned to AMD when supply was tight. These price cuts come after a year of gentlemenly conduct between the two companies on prices. |
| 2 | 3674 | 2001 | A surprisingly large price cut by Intel Corp. is raising the specter of a price war that could deliver a major leap in computer power to consumers even as it squeezes profit margins of chip makers. Analysts say that Intel, which has been losing market share to rival Advanced Micro Devices Inc., will have cut prices by 50% to 60% by the end of the month on some of its highest-performing chips. It has been expected to reduce prices by about 20%. |
| 3 | 5943 | 2002 | SPC Office Products tries to open stores 120 miles away from any Staples or Home Depot. It still, however, has to compete with their catalog and online sales. Since most customers assume that the giants are cheaper, the company sends out reps with price-comparison sheets that show SPC prices to be lower on certain products. The company is part of an industry-buying cooperative for smaller office-products retailers and that keeps the costs lower than they might be. The company does still pay more for supplies than the giants. |
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