Verizon Communications
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In reference to Verizon's competitors, is Verizon the price leader? If not, who is?
Is Verizon's pricing at the skimming (high) or penetration (low) level? Provide rationale for your answers. Include at least three competitor prices.
Measures the company has taken in an effort to sustain or enhance its competitive position in the given market structure. This can include the following:
Does Verizon have a strong marketing budget to create awareness for the product and/or service?
Provide examples of media advertising the company has used.
Name two countries that your company has entered. Has it been received favorably?
Does the company offer value-added benefits to the product and/or service that competition does not have, such as extended warranty, rebates, buy-1-get-1 promotions, seasonal or quantity discounts, free samples?
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This solution discusses the pricing strategy of Verizon Communications
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Verizon Communications Pricing Strategy
In reference to Verizon's competitors, is Verizon the price leader? If not, who is?
Verizon is not the price leader. It follows the price of its competitors. For example, it followed the cable company's prices when they offered telephony as a part of their packages. For example when Cablevision offered and introductory price of $29.95 for its Optimum Online voice, video and internet access services, Verizon reduced its voice service charges under the new Freedom Value service to exactly $29.95 in some markets. In other areas the Freedom Essentials voice service was provided unlimited local, regional and domestic, long-distance calling, along with home voice main, call waiting, and caller ID for $34.95 a month.
Is Verizon's pricing at the skimming (high) or penetration (low) level? Provide rationale for your answers. Include at least three competitor prices.
Verizon's pricing strategy is neither skimming that is keeping high prices nor earning high initial profits or penetration, when an entrant keeps low prices and buttresses its position with high advertising. Verizon's pricing strategy is lowering prices to protect its market share.
Let us take another example, in May 2006, Sprint announced a price of $550 for Treo 700p, with the purchase of one year plan, Verizon followed it put with its own offer ...
Education
- BSc , University of Calcutta
- MBA, Eastern Institute for Integrated Learning in Management
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