...FUTURE OF GAS PRICING IN INDIA Natural gas as a commodity is increasingly in demand in India. Natural gas presently constitutes About 10% of the country’s energy basket. India's hydrocarbon vision statement envisages the share of natural gas to be about 25% by 2025. With a substantial increase of share of natural gas on a rapidly increasing energy consumption base, it becomes imperative to identify new gas sourcing options, creating mechanisms for the markets to absorb the gas, and rationalizing the pricing mechanisms in order to encourage efficient consumption as well as efficient and adequate souring of the commodity. Imports will be a significant component of the fuel and feedstock price basket for new power and fertilizer customers, and these two sectors will continue to anchor the growth of a country gas grid. Under the circumstances, pooled price of natural gas in India may be in the larger interest of the consumers, and also benefit the market development of natural gas in this country. Power and Fertilizer constitutes approximately 62% of the total demand for natural gas in the country. Attaining a single benchmark price for natural gas will bring stability in the varying gas price which in turn will bring stability across various projects. A large upsurge in gas demand is foreseen in the future, to meet the unmet and latent demand, as Well as the future energy needs. Gas is necessary not only a clean fuel, but also will make up for the significant shortfalls...
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...Journal of Revenue and Pricing Management Volume 2 Number 3 FUTURE OF REVENUE MANAGEMENT The future of pricing in services Stowe Shoemaker Received (in revised form): 2nd July, 2003 William F. Harrah College of Hotel Administration, University of Nevada, Las Vegas, 4505 Maryland Parkway, Mail Drop 6037, Las Vegas, NV 89154-6037, USA Tel: +1 702 895 1794; Fax: +1 702 895 1135; E-mail: stowe1202@aol.com Stowe Shoemaker is an associate professor at the William F. Harrah College of Hotel Administration at the University of Nevada, Las Vegas. He holds a PhD from Cornell University in the School of Hotel Administration, an MS from the University of Massachusetts and a BS from the University of Vermont. Stowe also teaches strategic pricing and customer relationship management for Cornell University’s Professional Development Program. Stowe is ` a visiting professor at Ecole Hoteliere de Lausanne for autumn 2003. way of thinking about the history of pricing strategies — from one price for all to the current practice of revenue management and finally to the future of pricing — value pricing. Fourthly, the paper presents a way of thinking about value. Specifically, it shows that value is more than just the financial elements of the service. Finally, ways of changing the value perception in order to earn higher revenues are presented. This last section presents actual research showing that changes in the way prices are framed can increase revenue and loyalty. WHY LOYALTY IS IMPORTANT...
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...1. What part did pricing strategy play in the initial success of Netflix? Contrast the pricing in relation to traditional Video rental stores and describe how it evolved over time in support of Netflix’s changing business strategy. The pricing strategy had a huge hand on the initial success of Netflix. It used a market-oriented pricing approach and set its price based on analysis and research of the target market. Some of the factors incorporated by Netflix into its pricing strategy that contributed to its success were: i. Rent 3 movies at the cost of one VOD rental ii. Eliminated Late Fees / penalty pricing approach adopted by Blockbuster and other rental stores iii. Transitioned from market-oriented pricing to value-based pricing through the introduction of unlimited rentals iv. Movie recommendations to everyone whether / not they subscribed to Netflix services Netflix captured the market for initial DVD player adopters by providing customers with DVD formats that weren’t available in traditional movie rental stores yet. Netflix offered 3 movies for a month at $17.99 while rental stores offered a single hit movie at $18. The approach Netflix took to eliminate late fees and have a movie with the customer at all times helped Netflix capture market share instantly. As the stocking for DVD’s grew more complex, the pricing remained the same but they provided an unlimited rental policy that greatly appealed to customers that were concerned with late fees and limited...
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...Consultant, LLC Date: January 16, 2010 Re: Business Recommendations for Big Drive Auto based on Economic Projections This memo will present three specific economic futures over the next five years for the Big Drive Auto Company. This memo features recommendations from year to year and several graphs to provide visual support of the business recommendations from the Alpha Team Consultants (Alpha). Alpha would like the opportunity to present our recommendations for your future business management decisions. Our recommendations will provide you with money and time saving options regarding organizing, managing and integrating finances, product manufacturing and development, consumer relations and supply chain all while continuously increasing revenues and growth within Big Drive Auto. As your exclusive consulting firm we have composed several forms of data including diagrams, graphs and charts that aide in depicting the effects of our business recommendations over the next five years. This data is based solely on the GDP and any current economic contributing factors. The presented data and recommendations will aid the Big Drive Auto Company in staying ahead of the competition, while developing other methods that aide in business decisions making. [pic] GDP, Inflation, Pricing Strategies, and Policy With the previous recommendations presented from Milestone I, II, and III, Alpha Team has included a general description of the importance of GDP and...
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...------------------------------------------------- Uber Technologies ------------------------------------------------- What is Uber Technologies? Uber Technologies, Inc. was founded in 2009 by Travis Kalanik and Garrett Camp as a way to solve their own transportation problems in the traffic congested city of San Francisco where it is still based and headquartered. Uber Technologies offers an on demand car service application for smartphone users that links drivers with people needing a ride. According to Jim Makos of Pestle Analysis “It brilliantly connects the transportation industry with technology via its ride-sharing app.” With the click of a button on the application you can summons a vehicle of your choice see your rate, pay your fare online, see how far the vehicle is and know when it has arrived. Once they arrive you are provided courteous and outstanding service and a cashless transaction with tip included in the fare. Uber has empowered people to use their personal vehicles to provide for profit rides to earn income. This has been a great opportunity for people to earn extra income and for some it has become their only source of income. Uber is providing jobs in an economy where the unemployment rate is at a high 7 %, in turn this will benefit our economy by promoting an entrepreneurial and financial opportunity for Uber drivers. Uber originally started under the name UberCab but after a cease and desist order from the city of San Francisco ordering them to...
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...Entertainment: Gaylord Hotels… Marriott International operates and franchised hotels and licenses vacation ownership resorts, its culture embraces excellence and communication and technological innovations. In the late 1980s, after the successful implementation of Revenue Management in Airlines, Marriott has led the hotel industry in the practice of Revenue Management. It became an early pioneer of Revenue Management in hospitality. They developed a system named One Yield, which focused on improving hotel profits by timing price increases and promotions as well as using inventory controls. In addition, Marriott has also developed the Demand Forecasting System (DFS). It helps hotels to optimize the profits and revenue by figuring out the best pricing strategies and sales procedures. This system became a powerful tool for Marriott properties. Today, the system enables to provide recommendations to Revenue Managers about what room rates to offer at any given property on any given day. The development of Revenue Management has increased...
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...skimming pricing strategy is often part of a deliberate attempt to reach a market segment that is willing to pay a premium price for a particular brand or for a specialized or unique product. E.g. LVMH and other luxury goods. The skimming pricing strategy is also appropriate in the introductory phase of the product life cycle when both production capacity and competition are limited. Electric industry. 新产品 价格高， 新产品出来后 价格越来越便宜 A market penetration pricing strategy calls for setting price levels that are low enough to quickly build market share. E.g. Scale-efficient plants and low-cost labor allowed these companies to blitz the market.（ Penetration pricing often means that the product may be sold at a loss for a certain length of time）. Export price escalation is the increase in the final selling price of goods traded across borders that reflects these factors. （factors include: mode of transport, tariffs, various fees, handling charges, and documentations costs) 8 basic considerations for those whose responsibility includes setting prices on goods that cross borders: 1. Does the price reflect the product’s quality? 2. Is the price competitive given local market conditions? 3. Should the firm pursue market penetration, market skimming, or some other pricing objective? 4. What type of discount (trade, cash, quantity) and allowance (advertising, trade-off) should the firm offer its international customers? 5. Should prices differ with market segment? 6. What pricing options...
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...Kohl’s Pricing and Retail Strategy Kohl’s opened their first department store in 1962 Brookfield, Wisconsin a spinoff of the Kohl’s Grocery chain which was founded in Milwaukee, Wisconsin in the late 1920s. Kohl’s has grown to over 730 stores in 41 states. (Reference for Business, 2005) Retail Strategy Kohl’s operates as a discount department store offering name brand products with discounted pricing. Targeting middle income families, Kohl’s retail stores average 86,500 square feet in size and are located in shopping malls as well as freestanding marketplaces. The retailer also has an online presence at Kohls.com. (Reference for Business, 2005) Kohl’s uses a variety of different venues to advertise and promote its products including magazines, newspapers, direct mail, e-commerce, internet, Kohl’s App as well as mobile coupons can be texted to a smartphone. Kohl’s also offers a credit card providing additional in store as well as online savings. Kohl’s offers a “Kohl’s cash” rebate with every purchase in the store. Kohl’s cash is an in store cash incentive for the consumer to return on another date to the store. With every 50.00 spent at the department store the consumer receives a 10.00 that can be redeemed at a future date on additional purchases. (Kohl’s 2014) Pricing Strategy Kohl’s achieves discount pricing with limited staffing, centralized buying and distribution passing on their savings on to the consumer. Shoppers at Kohl’s expect to get a discount,...
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...automotive industry there is evidence that supports the future of economics within the automotive industry such as Big Drive Auto, a multi-manufacture of cars and trucks. Not only does the company conduct contributions in the coolant, tire replacement and motor oil industry, but Big Drive Auto, also, services parts for repairs and sales vehicles. Big Auto will have to forecast their prior records kept within the past ten years in order to remain successful as well as needing growth within the automotive industry if they are to stay ahead of the automotive industry. An evaluation, in spite of the fluctuations in the economy, of the revenue generated on service and auto sales and of the companies past sales of parts, this evaluation and/or information will assist Big Auto Drive’s management for the organization for future production plans. A future demonstration pricing strategy will be used from the data of previous years and in keeping the company moving forward, the management’s awareness of the economy in recent years will be considered in helping with product recommendations for Big Drive Auto. In moving forward, Big Drive Auto will need to assess in the upcoming years the mathematical equations and take into consideration operations, cost, economic analysis and productivity in order to create a strategy that is solid in dealing with the automotive industry in which will allow them to have processions for their future projections of the company. Big Drive Auto is compelled...
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...concepts to decision making process 2 1.1Explaining the importance of costs in pricing strategy 2 1.2 Designing costing and pricing system 2 1.3 Recommending proposal 4 Task 2 Application of forecasting techniques 5 2.1 Forecasting Techniques 5 2.2 Sources of Funds for the Expansion of ABZ Ltd 6 Task 3 Participating in the Budgeting Process 10 3.1 Selecting appropriate budgetary targets 10 3.2 Preparing Master Budget 11 3.3 Comparing Actual expenditure and income with master budget 12 3.4 Impact of Lack Budget Monitoring Process Policy 12 4.1 Process in Managing Cost Reduction 14 4.2 Potential for the Use of Activity-Based Costing (ABC) 15 5.1 Applying financial appraisal methods 16 5.2 Evaluating and recommending suitable project 16 5.3 Reporting appropriate strategic investment decision 18 Task 5 Interpreting Financial Statements 18 6.1 Analyzing Financial Statements 18 6.2 Applying Financial ratios 18 6.3 Recommending Strategic portfolio management 20 References 21 Task 1: Applying costs concepts to decision making process 1.1Explaining the importance of costs in pricing strategy Cost can be looked upon as one of the most important elements of the process of taking pricing decisions and implementation of pricing strategies. Particularly, companies that adopt cost based pricing strategy, utilizes manufacturing and production costs as the basis of pricing (Brag, 2001). Cost considerations on the part of a company aids in fixing a price...
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...Contents Introduction 2 LO1. Understand the importance of cost, volume and profit for management decision making in the travel and tourism 2 1.1 Importance of Cost and Volume 2 1.2 Pricing Methods 4 1.3 Factors Affecting Profit 5 LO2. Understand the use of management accounting information as a decision making tool in travel and tourism businesses 7 2.1 Types of Management Accounting Information 7 2.2 Decision Making Tool 8 LO3. Be able to interpret financial accounts to assist decision making in travel and tourism businesses 10 3.1 Interpret Financial Accounts 10 LO4. Understand sources and distribution of funding for public and non-public tourism development 12 4.1 Sources of Funding 12 Conclusion 14 References 15 Figure 1: Costs Classification 3 Figure 2: Accounting for Travel Companies 7 Figure 3: Management Information for Decision Making 9 Figure 4: Financial Accounts 10 Figure 5: Sources of Finance 12 Introduction Management decision making is a crucial part for not only regular companies but even for travel and tourism companies. The report here thus highlights and discusses different financial practices as observed and applied at the micro level, i.e. specifically in the travel and tourism industry. The company that has been chosen for analysis and reference study here, is Cox and Kings. Cox and Kings is one of the longest established travel companies around the world. Founded in 1758, the company is headquartered in India and...
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...Analyzing Managerial Decision: iTunes Music Pricing by HCM-540, MBOL5, Health Care Organization Instructor: Saint Leo University Distance Learning November 10, 2013 Abstract Apples’s Itunes music store came upon the music industry in 2003. It quickly became supreme within the music industry. The iPod, Apple’s MP3 players, and iTunes software were all interfacing, making it one of the more popular technology favorites among consumers. At odds with iTunes were the music companies crying foul over infringement and pricing. Buying overpriced CDs were quickly becoming a thing of the past. Music had been illegally accessed through peer-to-peer file sharing networks. With the recognition that music was being stolen, other ways were being developed by those with a stake in earning a profit. The industry had to decide if it should allow piracy to continue of develop variable pricing alternatives. This paper takes a look at alternative pricing in the case study, iTunes Music Pricing. At the conclusion, readers will have a better understanding of variable pricing policies. Introduction Variable pricing represents a concept use, by Apple, to describe the structure of pricing to advertise downloadable data. Variable pricing involves the different cost of a product for based on the preferences of the producers. This varies from the model of flat pricing, where one fixed price is applied to those items that are the same. Content of purchased songs, all cost one...
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...STRATEGY 1 The planning process 1 Position analysis 2 Product Life Cycle 4 Internet strategy 6 Pricing 9 Mergers and acquisitions -- Strategic aspects 16 Strategy THE PLANNING PROCESS There are 2 theories about where the planning process should start: Accountancy led Where objectives are set independently of the environment - i.e. road works need to be done on the M5 at some stage, therefore we will do them even if it is the August Bank Holiday. This is often production rather than market led. Marketing led Where the starting point is reached only after the environment is well known. By knowing the market, planning ^ have a better basis. Prior to doing any planning we need to know: • Who we are: the Mission Statement and defining SBUs may help here • Where we are: where all the various position analysis tools can be used Alternatively, The Chaos Theory advocates assume that all planning is nonsense: no matter how much planning is done. something will go wrong. The Mission Statement To give direction during the planning process, an underlying mission statement is often used The mission statement, in simple terms, tells the world who we are and what we are striving to do. It can, therefore, be a motivational statement for the benefit of employees or a marketing...
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...Identification of Pricing and Distribution Issues For the Company, Country, and Product or Service You Chose For Your Course Project Pricing is one of the most important part of any particular business irrespective of the sector they operates in. It is one of the most vital component that impacts the operations of a particular company one way or the other. It determines the perceptions of the customers regarding a particular set of products or services. It also enhance the value of the products and services to a greater extent altogether. This aspect affects the brand, image and market positioning within the marketplace. This aspect is also relevant for the operations of the companies like Toyota operating on the global business environment. It has been learnt that companies must need to ensure the deliverance of quality products and services to the customers. In this context, the approach of Toyota is more or similar to an extent. However, it has been leant that the company is dealing with problems of building a firm pricing strategy owing to the prevalence of a fluctuating trend within the automobile industry of that very market (Smith, 2011). Are There Any Issues That Will Positively Or Negatively Affect Your Pricing Strategy? Why and How? It has been depicted that there are certain prevailing issues in the automobile market of China that is hindering the operations of the companies in various sector one way or the other in a negative manner altogether. It has been...
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...version, July 27, 2003 Abstract. The rapid erosion of privacy poses numerous puzzles. Why is it occurring, and why do people care about it? This paper proposes an explanation for many of these puzzles in terms of the increasing importance of price discrimination. Privacy appears to be declining largely in order to facilitate differential pricing, which offers greater social and economic gains than auctions or shopping agents. The thesis of this paper is that what really motivates commercial organizations (even though they often do not realize it clearly themselves) is the growing incentive to price discriminate, coupled with the increasing ability to price discriminate. It is the same incentive that has led to the airline yield management system, with a complex and constantly changing array of prices. It is also the same incentive that led railroads to invent a variety of price and quality differentiation schemes in the 19th century. Privacy intrusions serve to provide the information that allows sellers to determine buyers’ willingness to pay. They also allow monitoring of usage, to ensure that arbitrage is not used to bypass discriminatory pricing. Economically, price discrimination is usually regarded as desirable, since it often increases the efficiency of the economy. That is why it is frequently promoted by governments, either through explicit mandates or through indirect means. On the other hand, price discrimination often arouses strong opposition from the public. There is no...
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