The Pricing Strategies

add references….Chapter 9, Application Problem 2The following paragraphs provide a description of the competition between Home Depot and Lowe’s on selling flowering plants:41 41 Miguel Bustillo, “The Garden Gloves Come Off—Big Box Retailers Battle to Engineer Prettier, Sturdier, Longer-Lasting Blooms,” Wall Street Journal (Online) April 27, 2011.In the spring Home Depot and Lowe’s engage in an annual arms race to engineer and develop new scientifically altered versions of common flowering plants that are designed to bloom brighter or withstand neglect longer. The goal in particular is “to sell something the other guy doesn’t.”Home Depot is the world’s largest home-improvement chain with $68 billion in annual revenue, while Lowe’s is the second-largest with $49 billion in annual revenue. Although spring is the peak selling season for all merchandise, plants and trees are used to entice consumers into the stores.Analysts estimate that for every dollar customers spend on plants, they spend $3 on accessories such as hoses, shovels, and gloves. Both companies employ weather forecasters to advise them on when plants should appear in stores in different parts of the country.Lowe’s uses a team of Ph.D. horticulturalists to choose among a thousand possible blooms developed by breeders around the world. After determining how the plants grow in different climates, the growers test mass production of hundreds and then thousands of plants. Both retailers try to secure exclusive rights to popular new varieties, although sometimes they are exclusive in name only.Lowe’s uses a greenhouse complex in Huntersville, NC to grow plants and conduct consumer focus groups where customers can identify the flower varieties they most admire. Home Depot uses another greenhouse complex in Mills River, NC, two hours west, for the same purpose.Discuss how the oligopoly models presented in this chapter apply to the behavior of Home Depot and Lowe’s.Chapter 10, Application Problem 3The following discussion pertains to the pricing policies of Linear Technology Corp.:65 65 George Anders, “In a Tech Backwater, a Profit Fortress Rises,” Wall Street Journal, July 10, 2007.The semiconductor industry Linear Technology Corp. has maintained strong profitability by operating at the fringes where competition is low and margins are high.This midsize company makes 7,500 arcane, unglamorous products that solve real-world problems for a long list of customers, including analog chips that are too cheap for customers to haggle over, but perform chores too important to ignore. Many of Linear’s chips cost less than 50 cents to build and sell for three to four times as much, but customers seldom complain about the markup.Linear made a 39% profit on its $1.1 billion sales in 2006, more than five times the average for U.S. industrial companies. However, other bigger chip makers, including Texas Instruments Inc., Richtek Technology Corp. of Taiwan, and Freescale Semiconductor Inc. of Austin, Texas, are now moving into the market and others may follow suit. Unlike in the digital chip world, in which a single winning design bought by a few big customers can yield huge profits, Linear would rather see its order book packed with small to midsize orders from companies too busy to haggle over prices. Intermec Inc., which makes mobile data scanners, uses Linear chips to obtain extra life from its devices’ batteries. The chips’ total cost is less than 5% of the materials budget. Performance is crucial for this company; price is not.Traditionally the dozen or so major analog chip companies have tiptoed around one another’s product lines, helping keep profit margins high. Each company established its strength decades ago, making it easy to extend existing product families and deepen relations with longtime customers. “We chip away a little at each others’ specialties,” says Jerald Fishman, chief executive of Analog Devices. “But there isn’t a lot of direct competition.”a. Discuss how price elasticity of demand influences the pricing strategies of Linear Technology Corp. What market model best describes this industry? Explain.

Assignments Ace
Order NOW For A 10% Discount!
Pages (550 words)
Approximate price: -

Why Assignmentsace?

Top Quality and Well-Researched Papers

We offer top-quality and well-researched assignment papers at low prices. We believe in offering the best quality services as we care about your grades, academic performance, and success. Our writers range from masters and Ph.D. graduates to professors. Our panel of expert academic writers does not rest until they are 100% sure your essay will score you an A+ only.

Professional and Experienced Academic Writers

Our writing company has the best panel of experienced academic and business writers. Our writers have experience of up to 9 years in the writing industry. They will go the extra mile to make sure you are handing in a quality A+ paper. If you are a student searching for any academic help, I advise you to seek for our experts' help.

Free Unlimited Revisions

Our clients frequently ask if they will be liable to free revisions once they place an assignment order with us. However, how many times you ask for revisions, our academic experts will help you. Either way, there is no need to worry as we provide free revisions. We are always after our clients’ satisfaction, and we are very proud to say that all our clients are satisfied with our writing services.

Prompt Delivery and 100% Money-Back-Guarantee

We are strict when it comes to assignments deadlines. We make sure our writers keep in mind the assignment delivery time. Because we care about clients, we go that extra mile to make sure you do not face those consequences. Whatever the deadline, we promise our clients a prompt delivery.

Affordable Prices

Are our charges too cheap for you to believe? Here at Assignments Ace, we offer quality assignment help at affordable prices. Our prices are substantive to cater to all students. Every time you place your assignment order with us, you are guaranteed a 15% discount.In addition, new clients enjoy a discount of 30% when placing their first order with us.

Customer Support 24/7

Do you have any queries for us? Or do you want to consult with our expert academic writers? Go ahead and contact us. We have 24/7 online friendly customer service. Whatever time of the day or night, we are always available for you. You can chat with us via our online chat services or contact us via our email, support@assignmentsace.com.

Try it now!

Calculate the price of your order

We'll send you the first draft for approval by at
Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

Our assignments help website is the most internationally sought-after site because we offer a wide range of top-quality services at low prices. Our proud history as an assignment help company stretches back nine years. We do offer Top Quality, Well-Researched Papers and Online classes to help students internationally. We do both of these things at cheap affordable prices by offering up to a 30% discount.

Essays

Essay Writing Services

Writing an essay is one of the most tedious tasks that require a lot of concentration and research. Writing an essay takes hours and even up days. We offer the best custom writing service and have your best interests in mind. Most online writing industries do not have qualified writers and are just after your money. Worry less, our writers who have enough experience are ready to give you the help you need. Our writers are carefully selected and undergo some tests to prove their professionalism.

Admissions

Admission Papers

Are you applying for a college? We help students join their dream college by writing for them strong admission papers that showcases their qualities and personalities. An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. We utilize statements of purpose, personal statements, and personal essays to make a compelling case by stating your leadership activities, education, accomplishments, and professional background.

Editing

Editing and Proofreading

We offer an abundance of online proofreading and editing services for our clients. By definition, proofreading is the final surface-level check done on a document. Other academic writing companies offer editing and proofreading as separate services. At our assignment help website, we offer editing and proofreading services as one complete package at affordable cheap prices. Grab your 30% Coupon if you order today!!!

Coursework

Business Paper

Are you a student pursuing an MBA in business, no need to look any further? We offer the best assignment help as we have the top niche MBA business writers who will give you A+ assignments. Over the years, our experts have helped students accomplish their academic dreams. We have helped thousands of students complete their business assignments with confidence.Grab your 30% Coupon if you order today!!!