Where will Microsoft place their Surface RT tablets in the pricing scale for their expected release at the end of October?
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Ergen has said he would be willing to establish a national pricing scale that would offer rural customers the same prices offered to urban and suburban customers where satellite and cable services are in direct competition.
Monitor's new report argues that Aravind's model does not just depend on pricing, scale, technology or process, but on a clever combination of all of them.
But retail pricing relates closely to scale so companies like Flint and Tinder find it difficult to compete with the chains.
Brilliantly managed by Chairman and Chief Executive Lorenzo Zambrano, 54, its success stems from several interrelated factors: acquisitions, economies of scale, pricing power, ruthless cost-cutting -- all of which have been made possible by large and intelligent investment in communications technology.
The overlap is inefficient: it duplicates research and development, reduces economies of scale and destroys pricing power.
The company is trying to correct this with large-scale changes in its pricing structure.
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But he notes that the company has kept margins stable due to scale benefits and a pricing structure that is mostly usage based.
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This gave Cemex important scale economies, enhanced its pricing power in its home market and parried Holderbank's thrust.
From here on, the factors important to success in the traditional brick-and- mortar retail business -- pricing power based on brand strength and economies of scale -- also will be required on the Internet.
We discussed this as well as some other advantages DirecTV enjoys over its competitors in a recent article. (See DirecTV Subscriber Gains Continue.) Marketing campaigns drove subscriber additions in recent quarters and so far it has avoided any large scale blackouts similar to the ones experienced by Dish in pricing disputes with content carriers.
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