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Unformatted text preview: The United States market for Larsons product is highly competitive. It has been very hard for Larson Inc. to establish product differentiation. With the U.S. present economy woes, which ranges from the housing market, all the way through high unemployment rates, Larson Inc. must consider all of these conditions in order to stay successful. Plan A is to use cost-plus pricing. Plan B is to use competition-based pricing, which allows Larson Inc. to adjust its pricing to competitors pricing. It will also allow Larson Inc to overcome the products little distinctiveness from its competitors product, but take into effect that the product has elevated price elasticity, has some cross elasticity, and has no expectation that the demand of its product will rise. This strategy will allow us to stay competitive at all times....
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This note was uploaded on 06/13/2011 for the course ACCT561 SH2MB906 taught by Professor Nathanielmanning during the Spring '09 term at University of Phoenix.
- Spring '09