Reduce Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS
CHOICE 2 SEGMENTS: TARGETED COMPETITOR SEGMENT / PRICE LEADER PRICE AGAINST STANDARD LEADER
CHOICE 3 COMPONENT: CHANGE FUNCTION AND PRICE TOGETHER
| No. | SIC | Year | Notes |
| 1 | 3571 | 1987 | Apollo invented the engineering workstation. Apollo had a machine that was incompatible with other machines, higher in price and, by most measures, the superior product on the market. In the face of competition, Apollo built machines that were standardized, too. Sun had a standardized machine, which was cheaper to produce, easier to sell to a varied market, and even easier to discount. Recently, Sun dropped prices on its cheapest work station by 37% to $4995, making it competitive with some PCs. It is now half the price of Apollo's cheapest machine. |
| 2 | 4512 | 2000 | Legend Airlines is poised to start flying 56-seat jets this month to Los Angeles and Washington, offering exclusively first-class seating, gourmet meals and satellite TV, all for regular coach fare. Not to be outdone, American is trying to get permission to provide similar all-first-class service to major business centers from Love Field, the very kind of long-haul flights it argued so passionately were illegal. When Legend began calling on Dallas companies to strike bulk-purchase deals, it found that American had already offered many of them big incentives for booking loyally with American. |
| 3 | 8111 | 2000 | Venture Law Group has been trying to get its lawyers to work fewer hours, on the theory that it can make more money investing in clients than billing them. And it does all this while consciously shunning the biggest and most prestigious corporate clients. Little VLG is one of the nation's most profitable law firms. Clients are often allowed to slide on paying their legal bills until they are up and running. Its strategy of focusing exclusively on start-ups has positioned VLG perfectly for the times. It cuts loose clients that get too big. |
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