For example buyers can choose between several movie

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Unformatted text preview: y different-looking products and services offered outside the group of traditional competitors. For example, buyers can choose between several movie theaters, but they can also decide to go to restaurants and bars. Managers should consider two categories of products/services that are beyond an industry’s boundaries in identifying the price corridor of the mass. Those are: products and services that take different forms but perform the same function; and products and services that have different forms and functions but serve the same purpose. 2. Next determine how high or low the strategic price should be set within the corridor without inviting competition from imitation. To do this, a company should consider two sets of factors: 1) the level of legal and resource protection the new offering has to block imitation; and 2) the degree to which the company owns some exclusive asset or core capability, such as an expensive production plant, that can also block imitation. The higher the level of protection against imitation, the highe...
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