Impartial decisions in the best interests of the organisation are more elusive than you might think according to research by Marco Bertini, Daniel Halbheer and Oded Koenigsburg.
The production of complementary goods raises a number of interesting issues concerning firm strategy and value creation. Oded Koenigsberg (and others) investigate this strategic interaction between firms producing strictly complementary products.
Every company has to put a price on what it sells, but Tim Ham and Marco Bertini have found that most companies often fail at this important task in a manner that jeopardises long term value.
It’s that time of year again when shoppers are shoving their way across overcrowded aisles for the best deals they can find and retailers are fighting tooth and nail for every dollar in customers’ wallets. The six weeks between late-November and early-January is a vital period for retailers, one that can determine whether they live or die as a business entity. This is the time of year when prices hit rock bottom.
A recent study of 1,225 senior executives of large European companies reports that 95 per cent of those whose firms are involved in a price war believe the poisonous fight was initiated by the competition. A second study, this time involving close to 4,000 participants from companies in the US, Asia, and Europe, produced a similar outcome: 83 per cent believed the competition was responsible for the downward spiraling of prices.