63 the case does not explicitly describe the price

  • No School
  • AA 1
  • 73
  • 100% (1) 1 out of 1 people found this document helpful

This preview shows page 63 - 73 out of 73 pages.

63The case does not explicitly describe the price-flex program or the absorption of raw materials costs as price cuts, but they are.Harvard Business School Case4
Background image
Price War: Is Signode Ready?64Past behaviours are an indication.Signode’s competitors are ready and willing to cut prices. Signode is less capable of competing on price, actions by Signode that initiate price cuts will be counterproductive and play into the hands of the competitionHarvard Business School Case5
Background image
Price War: Is Signode Ready?65Signode’s three largest competitors are lower cost providers of steel strapping (Alpha and Bentley are subsidiaries of steel producers, and Sanford has lower overhead). [Case p. 7]Harvard Business School Case6
Background image
Price War: Is Signode Ready?66All of Signode’s competitors are more focused. With narrower product lines and less sales and customer support service, they are better able to compete on the basis of price.Harvard Business School Case7
Background image
Price War: Is Signode Ready?67Alpha, Signode’s major competitor, has already pre-empted Signode’s price leadershipby announcing a price increase for “a select group of customers.”Harvard Business School Case8
Background image
68Decline of Signode’s Industrial MarketMarket-Shifting
Background image
69Positioning of Signode
Background image
Full Line Full Service Supplier70Very high value added system sellerImproving technical assistanceIncreasing R & DProviding Better Sales and Customer SupportIndustry Specialist170 standard sizes of steel strapping (12 accounted 73 %)More than 550 standard types of sizes of steel strapping machinesToolsCustomized strappingCustomized designed Hand tools and power equipmentsHarvard Business School Case
Background image
Background image
HighLowHighLowCost to ServePrice PaidScatter Plot of Signode top 1200 AccountsHarvard Business School Case
Background image
73Signode Unclear product policy and non existent account selection and management strategy
Background image

You've reached the end of your free preview.

Want to read all 73 pages?

  • Fall '19
  • Marketing, Pricing, Dewani Indian Institute of Management Lucknow, Prof. Prem Prakash

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture