Cost Competitiveness and Pricing Strategies

Abstract

Cost is a fact and 'price' is a strategy. Both relate to 'product' which is another area of an enterprise's strategies. This article reviews the techniques of quality-value-cost optimization for enhancing competitiveness which is the main focus of today's business Strategies. Economics tells us that demand-supply of a product determines its price and consequential profit. 'Utility' and 'Cost' of the product underlie demand-supply. In short-run, an enterprise may earn super-profits or suffer losses. But in the long-run, it has to earn at least reasonable profits justifying investment of capital in business.