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Week 7 - Week 7:Shaping the Offerings Experience...

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Click to edit Master subtitle style Week 7:Shaping the Offerings * Experience Curve *Pricing
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Ford Motor Co . 1906- 6,400 cars 1910- 34,500 cars 1914 - $5 a day (8hr day) 1915- 472,000 cars 1921- 5millionth Ford built 1927- 15millionth Ford built 1937- 25millionth Ford built
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Sources of Cost Reduction Exogenous Progress Technology Advancements Inputs from suppliers etc. Customer Feedback Scale Effects Learning from Experience ©
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Learning from Experience Labor Efficiency Work Specialization and Methods Improvement New Production Processes Better Performance from Production Equipment Changes in Resource Mix Product Standardization Product Redesign
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Experience Curve Strategic Implications Achieving Cost Advantage Anticipating Future Developments ( Steel Industry ) Experience Curve Strategies and PLC Experience Effect of Shared Costs Technology Life Cycles (Semi conductor) Caveats and Limitations (Ford Motor Co.)
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Pricing Issues
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PRICING STRATEGIES overview Effect of Weber’s Law (C) Factors influencing Pricing (C) Price–Quality relationship Discount Pricing Flexible Pricing Bundling–Pricing Strategy Price–Leadership Strategy Build Market Share Strategy
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PRICING STRATEGIES Strategies for new products(Weber) ©
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PRICING STRATEGIES Pricing for new Products (Weber’s Law) 0
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(E.H.) Weber’s law
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