Write in your own words start a threaded discussion you each

Write in your own words

start a threaded discussion (you each need to start one) on pricing strategy for a particular industry... corn, coffee, milk, computers, cars, swimming pools, houses... the list is endless.

I\'ll be happy if you can explain what influences a particular product\'s price. Presumably you\'ll write about a product you know something about. To receive the full 10 POINTS of the INITIAL POST, you are required to use (at least) one of the terms in the terminology definitions within your initial post. I know it\'ll be easy to work words like tariff, outsourcing, comparative advantage, free trade, quota, dumping, or price discrimination into your initial posting. Remember, people need time to absorb your post and comment, so you must post 36 hours before the close of the module.

There are a lot of things that influence price. Your DELL computer is cheaper in price because their help desk is operated in India. NAFTA has put some area businesses out of business... and helped other businesses. A recent hurricane in Florida has affected gas prices here. These are all factors that influence price. Let\'s hear some of your own examples and analysis.

Solution

Lets talk about retail industry and particulary about the Walmart company.

It is well known that Walmart is giant company and the king in the reatil industry all over the world. It has achived its peak mainly because of two factors hwich gives it competitive advantage. These facors are actually its sources of core competetncy which are Low prices and WIde range of products. \"Everyday Low prices\" is the tagline that it supports and reflects its stratgey to combat the competition of the industry and reflcets the differentation of it.

NOw the question arises how does this giant company manages its operations to charge relatively very low price in the induatry against other retailers.

Wlamart was initially started with the same strategy of keeping prices low as much as possible. It was known to the founder that the margins would be very low than other competitors but it could surpass when with the low prices the company would gain scale of sales. Because of low prices and huge sales it becomes easy for Walmart to reap the advantages of economies of scale and also increases its bargaining power to remake the supply sector and retailer lanscape.

Another core competency is its supply management. It has very well managed its supply chain through electronic product information through usage of technologically advanced and efficeint barcodes and RFID which maintain the database and inform inventory management system automatically, direct deal with manufacturers, well management of point of sales information and layout of warehouses making a unified and coordinated system where in the suppliers directly get informed about the change in inventory into warehouses.

All these factors have contributed to the succesful pricing stratgey of Walmart in becoming pioneer in retail industry.