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| Topic: |
Business
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| Number of pages / Number of words: |
5 / 1285 |
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Tony Barren’s initial price estimation of $550 and the latter revised price of $475 (obtained by 8% cost-cutting on minor technical changes by the design and production team), were perceived to be too high for competitive positioning of Aerial (considering BirdsI’s market price of $400 and Garmin’s expected price of $395) by the Sales team...
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BirdsI’s two-year market advantage and Aerial’s high pricing of about $475 can threaten Aerial’s sales prospects. On the other hand, cutting down on cost can imply a compromise in quality and jeopardize our goodwill and loyal customer base. Although Mr. Cory Wu’s repeated questioning of the high product price can be suggestive of a further scope of cost cutting in the hardware design and production or else a total lack of departmental coordination...
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