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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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- Spring '12