Reduce Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: RETAIN CUSTOMERS

CHOICE 2 SEGMENTS: TARGETED COMPETITOR SEGMENT / PRICE LEADER OR NEXT LEADER PRICE AGAINST PRICE LEADER OR NEXT LEADER

CHOICE 3 COMPONENT: CHANGE THE LIST PRICE

No. SIC Year Notes
1 3571 1991 Compaq slashed its prices as much as 34% to win back sales. It cut prices across its product line, but focused particularly on its portable notebook computers, which face severe price pressure from more than 50 competitors.
2 3571 1991 Previous October Apple cut prices in half on popular models. Compaq reacted by cutting prices by as much as one-third on its models.
3 3571 1991 IBM says it will cut prices as much as 60% on its workstations today. Price cuts for the low end and middle of the IBM line were much smaller than they were for the high end.
4 3571 1993 Apple announced yesterday it would cut prices for more of its products. Latest cuts range from 17% to 33% and include Apple Powerbook Duo computers, notebook models. Reductions also include Apple Macintosh Centris 650 and Apple Quadra 800 computers.

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