with high quality. Unlike most firms in the electronics industry who try to win customers over by using competitive pricing, Apple focuses more on the products and does not try to complete on price. It uses premium pricing and price skimming where a high price is charged for a unique product, although each updated model may only have a small price difference from the earlier models. Apple has unique and innovative products such as the iPod touch/shuffle/nano. These products do not have substitutes
Words: 669 - Pages: 3
varying its Debt to Equity ratio during those years. We discounted these cash flows by the required return on assets that was in turn calculated through use of the Modigliani-Miller unlevering formula (to derive the Asset Beta) and the Capital Asset Pricing Model. The required return on Congoleum debt was calculated by the expected return of the average CCC-company’s debt and the expected return of debt under default. Then, the present value of financial side effects was taken into account by discounting
Words: 286 - Pages: 2
cash flows (operating profit + depreciation + amortization of goodwill - capital expenditures - cash taxes - change in working capital) are discounted to a present value using the company's weighted average costs of capital. The Capital Asset Pricing Model (CAPM) is used in finance to determine a theoretically appropriate required rate of return (and thus the price if expected cash flows can be estimated) of an asset, if that asset is to be added to an already well-diversified portfolio, given that
Words: 276 - Pages: 2
Case Study analysis TATA-CORUS:- Q.1. What are the benefits of the TATA-CORUS merger deal to the stakeholders of TATA Steel and the stakeholders of CORUS? Evaluate the post-merger security with the help of CAPM Model. A.1. On January 31st, 2007 India’s Tata Steel acquired Corus, the erstwhile British Steel Major at a price of 608 pence per Corus share totaling $12.1 billion/ Rs 54,000 crore/ £6.1 bn, which was five pence per share higher than the offer of Brazil’s CSN (Companhia Siderugica
Words: 3103 - Pages: 13
different contexts. Traditionally, systematic risk has referred to the non-diversifiable risk that comes from the impact the overall market has on individual investments. This risk is also known as “market risk” according to the Capital Asset Pricing Model (CAPM) described in this chapter. With the financial crisis, however, people have been using the term systematic risk in a somewhat different way. Many companies, especially financial firms, are connected to each other in significant ways.
Words: 13535 - Pages: 55
Introduction Which is the one place where you can satisfy your every need (almost every need) at your price? Be it airline tickets, hotel rooms, rental cars, mortgages, new automobiles, or even long distance calling time. The answer would be Priceline.com. All you have to do is know your need, state your terms, and make your offer. It doesn’t get easier than this! Priceline.com was one of the pioneer online companies to traverse the traditional limitations of the Internet and revolutionize online
Words: 4176 - Pages: 17
Contents Contents 1 1. Key Challenge 2 2. Segmenation 2 3. targeting 3 4. Positioning 4 5. Interview with dlf 4 6. Product 5 7. Pricing 6 8. PROMOTION 7 9. PRODUCT MIX 9 10. CONCLUSION 11 11. references 11 1. Key Challenge As part of Part I of the project we did a situational analysis for Sobha covering the 3Cs (Company, Customer, Competition) and came up with a list of major challenges that Sobha faces. In this report, we kept our focus is in doing a STP
Words: 3626 - Pages: 15
stage last for about 3 months with 5-million units sold in end of July. A lot of money was needed to spend in the process of designing and marketing this new product. In order to recover this money quickly to make to product profitable, Samsung took pricing-skimming strategy. It is a business technique which involves charging a high price for a product when it is released initially and gradually lowering the price overtime. The goal is to ensure that the price matches consumer willingness to pay and
Words: 521 - Pages: 3
Case: Omnitel Pronto Italia Executive Summary Omnitel, the 2nd GSM mobile operator in Italy has two alternative product offerings to launch into the Italian market. Additionally, their consumer research points to multiple consumer needs and pricing expectations. In order to increase their market share, Omnitel has to offer multiple tariffs and a use combination of both the subsidized contract plan and the no-monthly fee plan to meet the consumer’s requirements. Omintel Mobile: Launching Against
Words: 1169 - Pages: 5
Channel and Pricing Strategies MKT/571 May 31, 2012 Understanding various markets and strategies when dealing with the launch of a new product can be challenging. Below is a breakdown of the channel strategies, pricing strategies, and environmental factors. In addition, the government and economic factors, innovation and technology, and the demographics of the new product are factored in the plan for the launch. Channel Strategies Most manufacturers do not sell their
Words: 1958 - Pages: 8
