Reduce Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS
CHOICE 2 SEGMENTS: TARGETED COMPETITOR SEGMENT / STANDARD LEADER PRICE AGAINST ESTABLISHED STANDARD LEADER / AGAINST A SMALLER STANDARD LEADER
CHOICE 3 COMPONENT: CHANGE THE BENEFIT PACKAGE
| No. | SIC | Year | Notes |
| 1 | 3571 | 2004 | Sun fell on hard times. Rivals like IBM and HP started offering machines with less expensive hardware and software. |
| 2 | 3651 | 2005 | Apple Computers Inc. is moving from the high-end and taking clear aim at the low end of its two core markets. Currently, the market is fragmented among dozens of MP3 players that charge roughly $150 for devices that hold 120 songs. What Apple has done is deliberately undercut the competition. The base model of the new shuffle costs $99 and holds 120-plus songs. To get that low price, however, it has designed a bare-bones platter that may not appeal to everyone. Apple's gadget boasts no screen – meaning users can't see or control what they're playing. Apple is betting that there are plenty of low-budget buyers out there who will find the shuffle enough gadget for their need. It also hopes they'll be tempted to move up into a pricier iPod, especially if they get hooked buying music form the company's iTunes music stores. |
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