Pricing Dynamics: Insights on Market Share and Profitability PPT


This PPT slide, part of the 38-slide Pricing Strategy PowerPoint presentation, presents a detailed tabulation of pricing data, illustrating the interplay between unit price, market share, customer volume, margin, revenue, and profit. Each row corresponds to a different unit price, ranging from $340 to $6,000, with associated metrics that provide insight into how pricing decisions impact overall financial performance.

At the highest price point of $340, the market share is maximized at 100%,, but this comes with a significant negative margin, indicating that while volume is high, profitability is severely compromised. As prices increase, market share decreases,, but margins and revenue fluctuate, revealing a complex relationship. For instance, at a price of $1,300, the margin is 23%, generating a profit of approximately $12.75 million, which is a notable improvement compared to lower price points.

The data also highlights a critical observation regarding pricing strategy: there are limits to market share capture without sacrificing profitability. As prices rise, the slide notes that a point will be reached where lowering prices further leads to losses, emphasizing the need for a balanced approach to pricing.

The illustrative nature of the data suggests that these figures are not absolute, but serve as a guide for decision-making. The annotations on the slide further reinforce the importance of understanding the dynamics of pricing and market share, particularly the implications of early market sales versus established market positions. This analysis is crucial for executives considering adjustments to their pricing strategies, as it underscores the need to align pricing with both market conditions and profitability objectives.



This slide is part of the Pricing Strategy PowerPoint presentation.

This Pricing Strategy framework is created by former McKinsey, BCG, Deloitte, EY, and Capgemini consultants. It teaches the Strategy Consulting approach to formulating a Pricing Strategy. Financial model also included.

Download the Full Presentation


EXPLORE MORE SLIDES FROM THIS PRESENTATION


EXPLORE MORE PRESENTATIONS ON

Pricing Strategy Product Strategy Product Launch Strategy Sales

Are you familiar with Flevy? We are you shortcut to immediate value.
Flevy provides business best practices—the same as those produced by top-tier consulting firms and used by Fortune 100 companies. Our best practice business frameworks, financial models, and templates are of the same caliber as those produced by top-tier management consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture. Most were developed by seasoned executives and consultants with 20+ years of experience.

Trusted by over 10,000+ Client Organizations
Since 2012, we have provided best practices to over 10,000 businesses and organizations of all sizes, from startups and small businesses to the Fortune 100, in over 130 countries.
AT&T GE Cisco Intel IBM Coke Dell Toyota HP Nike Samsung Microsoft Astrazeneca JP Morgan KPMG Walgreens Walmart 3M Kaiser Oracle SAP Google E&Y Volvo Bosch Merck Fedex Shell Amgen Eli Lilly Roche AIG Abbott Amazon PwC T-Mobile Broadcom Bayer Pearson Titleist ConEd Pfizer NTT Data Schwab



Flevy is the world's largest knowledge base of best practices.


Leverage the Experience of Experts.

Find documents of the same caliber as those used by top-tier consulting firms, like McKinsey, BCG, Bain, Deloitte, Accenture.

Download Immediately and Use.

Our PowerPoint presentations, Excel workbooks, and Word documents are completely customizable, including rebrandable.

Save Time, Effort, and Money.

Save yourself and your employees countless hours. Use that time to work on more value-added and fulfilling activities.




Read Customer Testimonials



Download our FREE Strategy & Transformation Framework Templates

Download our free compilation of 50+ Strategy & Transformation slides and templates. Frameworks include McKinsey 7-S, Balanced Scorecard, Disruptive Innovation, BCG Curve, and many more.