Athens Glass Works Essay

960 words - 4 pages

Athens Glass Works

* 如果不考慮對手的反應 , 您會建議哪一個價格 ?

Through the discussion , For the proposed price decision , if we ignore our competitors’ reaction , there are two assumption scenario we have made for this case

1. The decision made will maximum company overall benefits
2. The competitors’ decision will not impact the AGW(Athens Glass Works) overall result like market share , customers relationship, delivery,…etc.

Based on above assumption scenario , from AGW decision making point , we can explore the following information

For such scenario , we can find if AGW make pricing decision at US$ 2.36 and based on the minimum sales volume forecast 150,000 , it will have ...view middle of the document...

the controllable margin US$ 153 of the price at US$ 2.36 of sale volume 150K.

* 如果考慮對手的反應 , 又應該是哪一個價格 ?

Based on the case description , there are two scenario can be assumed.
1. The price can be decided by USD 2.15 or USD 2.36 only. ( If we can only decide by one of them)
2. The price range can be selected between above range. ( if we can calculated related figures)

Based on above scenario one assumption , if we consider other competitors’ reaction , there will be
(1) AGW keep price level at USD 2.36 per sq. ft., and competitors follow the AGW to raise up the price to USD 2.36 per sq. ft. too. → The case cannot exist by case description.
(2) AGW keep price level at USD 2.36 per sq. ft. and competitors keep the price level at US$ 2.15. → The situation will let AGW keep around 20% market share only , it will let AGW have controllable margin US$ 153,000.
(3) AGW keep price level at US$ 2.36 and competitors low their price to US$2.05 → By case description , due to the competitors also facing the same general economic conditions resulting from the long recession and several were in particularly tight financial pressure. The case cannot exist.
(4) AGW returned bank the price at US$ 2.15 and competitors keep the same price level US$ 2.15. → If in the case , AGW will win back the market share back to around 35% and increase AGW controllable margin. For ideally case , if AGW can have around sales volume 320K sq ft. and the controllable margin will be US$236,800.
(5) AGW returned back the price at US$ 2.15 and competitors lower their price to US$ 2.05. → It is same as case (3) , due to the competitors also facing...

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