Key microeconomic Essay Example | Topics and Well Written Essays - 500 words

Key microeconomic - Essay warningCPI should not pose a threat to firms such as Proctor and Gamble. The firm back end be position in a segment of the market where it would not have to compete straightaway with the market leaders. The best way to achieve that goal is by implementing a differentiation strategy. A variable quantity that can jockstrap the company achieve a differentiation strategy is the quality of its products. A sec important economic variable that CPI has to consider is pricing. The pricing strategy is very important because wrong determines the ability of a company to achieve superior profits. Products that are underpriced may sell well only if its overall effect in the profitability of a company is not optimum. CPI has to study the market prices of all the products it sells. In a pricing study the firm should analyze the market price of to each one product in the US, internationally and online. Selling the products at a premium price can help the firm diffe rentiate from low cost producers. The price structure of the company should be sufficient to accept off for all variable and fixed cost while at the same time difference a hefty surplus of profits. The profit margin of the enterprise should be equal or founder than the industry average.