Building a Leading Class Pricing Capability
Where does your company stack up?
The game is changing. This is the conclusion reached by hundreds of executives participating in a pricing capability benchmarking study when asked to reflect on the pricing challenges they face. The study sought to measure the impact of pricing strategy and pricing execution on profitability and revenue growth. The results provide compelling evidence that the ability to manage pricing strategically can be a source of competitive advantage that drives strong financial performance.
From financial services to manufacturing to consumer goods, surveyed executives report that growing profits in competitive markets has become an ever more difficult task. For many, the challenge stems from globalization of markets that has unleashed new competitors with lower costs and innovative business models. For others, the change stems from the increased knowledge and sophistication of customers that have become experienced at extracting price concessions.
Of those surveyed, a majority of executives reported substantial changes in their competitive environment. The more astute managers also recognize that the structural shifts in the global marketplace are rendering many traditional approaches to pricing obsolete.
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