Larson Inc

Pricing Strategy, Non-Price Barriers, and Product Differentiation of Larson Incorporated

University of Phoenix

ECO561

Larson Incorporated

In the business world, companies must adapt to changes in the economy to competitive in their respective market. The needs of the consumer are constantly changing in response to current economic conditions, which forces a business to focus on trends and changes. For a company to remain competitive, the company must consider a few elements when implementing a pricing strategy. These elements are: fixed costs, variable costs, competition, Gross Domestic Product (GDP), non-price barriers, product differentiation, and current economic conditions. The management of the company must be proactive and take an dynamic role in the decision making processes to establish how to change the pricing strategy with respect to how that strategy fits into the organizational goals. Multiple sectors within the organization complete reviews and reports, for the purpose of meeting business objectives, enabling the management to make decisions about the non-price barriers and product differentiation. Management, by factoring in these two variables, can then produce the correct formula to permit the company to maintain a competitive status and to maximize profits

Provide review of data from scenario

Larson Incorporated is an international company operating out of Germany for the last 15 years and America for the last 5 years. The products the company supplies are batteries for everything from laptops to electronic toys. After a review, the overall profits were much lower than was expected. Larson has maintained a decentralized structure when it comes to marketing, pricing, and trade. With the current economic conditions in both America and Germany, Corporate decided it was necessary to put together a team that could review the current conditions and make recommendations for change. The following is the current information that the...