ajaz_eco_204_2012_2013_chapter_16_Market_Power

In pittsburgh in the 1990s most companies attacked

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Unformatted text preview: and price. To be sure, the Net boom has cooled considerably—but not without upending the staid world of pricing forbusinesses old and new. Upstarts such as Priceline.com, whose name-your-own-price model once threatened to shift pricing power to buyers, are now only shadows of their former selves, and scores of online bidding B2B exchanges have folded after burning through millions of dollars. But the revolutionary ideas and technologies unleashed by these pioneers live on. Even as the dot-coms crashed, the Internet quietly redefined the way even traditional businesses price goods, in profound and lasting ways. Now, amid recessionary pressures, company strategists are looking to the Net not just to cut costs —but also to harness their warehouses of customer data, faster computers and new kinds of slice -and-dice software to price their goods more strategically—online and off. "Today's economy is pushing people to find every opportunity they can to improve profitability," says Craig Zawada, associate principal at McKinsey & Co. in Pittsburgh. "In the 1990s, most companies attacked cost. Pricing remains one of the few untapped levers." Adds Rashi Glazer, codirector of the Center for Marketing and Technology at the University of California at Berkel...
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This document was uploaded on 01/19/2014.

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