Question

E) do you think STC should change its pricing strategy? Justify your answer.

can anyone solve this answer? ​

Answer 1

Here are some points to consider:

• Market competition: If STC faces intense competition in the market, adjusting its pricing strategy can help it gain a competitive edge and attract more customers.
• Customer demand: Understanding customer preferences and affordability is crucial. If customers find the current pricing structure unattractive or if there is a growing demand for lower prices, adjusting the strategy might be necessary to remain competitive.
• Profitability: Evaluating the financial implications is essential. Changing the pricing strategy could potentially impact revenue and profitability. Careful analysis should be done to ensure the new pricing structure aligns with the company's financial goals.
• Value proposition: Assessing the value proposition of STC's products and services is crucial. If customers perceive the offerings as overpriced compared to competitors, adjusting the pricing strategy can help enhance the perceived value and drive customer loyalty.
• Market segmentation: Different customer segments may have varying price sensitivities. STC can explore targeted pricing strategies, such as offering discounted plans for specific demographics or introducing tiered pricing to cater to different customer needs.

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