Answer to Question #59345 in Economics of Enterprise for kerry
Select a public limited company of your choice which has some degree of market power.essay of 2400 words or fewer, evaluate the pricing strategies it employs for its core product/business in order to increase its market share and profitability within its industry.You will need to build up a case study based on a company of your choice. You must first demonstrate that the company has some power to set its own price (that is, it has some degree of market power) – e.g. what is the structure of the industry it operates in? What is its market share for the product? How concentrated is the industry?You must then use economic analysis to evaluate the pricing strategies your firm has adopted for its main product(s). Make clear comparisons between the predictions of the economic theories covered in the module and the empirical evidence for your firm. Are the strategies adopted by the firm optimal? If so, why? If not, why not? How might they be improved?
i choose NISSAN as my company to do this task.
Nissan was the sixth largest automaker in the world behind Toyota, General Motors, Volkswagen Group, Hyundai Motor Group, and Ford in 2013. Taken together, the Renault–Nissan Alliance would be the world’s fourth largest automaker. Nissan is the leading Japanese brand in China, Russia and Mexico.
Nissan has an advantage that it offers cars across segments and categories and has a varied range of Hatchbacks and SUVs which appeal to different category of customers, right from basic small car models (Micra and Go), sedan models (Sunny), luxury cars, and SUVs such as X-Trail. This strategy has helped Nissan to capture various markets and has provided it advantage to have respectable proportions and market share.
Nissan has been known to offer reasonable and logical price to its cars. This is the reason for its widespread popularity and reliance.
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