Swot Analysis Of Local Cable Company

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Recommended: Principles of pricing strategies

Price strategy: Local cable company
Introduction
The underlying assignment is based on developing pricing strategy for a local cable company. The pricing strategy is designed in accordance with pricing objective, demand of the service, estimating cost elements, preparing competitive price analysis and selecting pricing method and determining final price accordingly. All these aspects are discussed in detailed terms in underlying sections.
Price objective
The concerned local company will pursue and follow customer-related price objectives. Under this, it will aim to win the confidence of customer and satisfying them in enriched manner. These two price objectives will prove as stepping stone in creating demand of the company’s product. …show more content…

In detailed terms, primary cost elements include material costs, salary costs and other costs necessary to incur for manufacturing or preparing cost. Likewise, secondary cost elements are depreciation costs, petty expenses, maintenance and updation expenses and some other incurring at regular intervals in daily operations. It is worth mentioning that both primary and secondary cost elements are bound to incur as concerned business firm can’t ignore and underestimate the fact (Cant, Strydom, Jooste & Plessis, 2009). On the basis of this, it is said that cost elements is having direct impact on price of the service. There exists direct linear equation in cost elements and its impact on price of service. The high range cost elements automatically raise price of service while low range cost elements decrease price of service.
It means rise in one aspect automatically increase other one and vice-versa. For keeping price of the service low, it is necessary for local cable company to keep price elements in control and within budgetary limits. And, if company decided to keep price low, even if cost elements are increasing then it will result in loss to the company.
Competitive price

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