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Relationship between business strategy and price behavior |
Minkov, Il., Y. Ivanov (2007), the journal "Izvestia" br.3, UE - Varna, p. 64 - 74 The article examined the characteristics of the relationship of business strategy and firm pricing behavior. By identifying the main characteristics of these categories seek economic importance of the relationship between them to achieve market success. Identify two groups of factors affecting price behavior in specific business strategy - factors of consumer demand and competitive factors. On this basis, may determine possible price behavior depending on the business strategy and the combination of the index factors.
In modern conditions of economic integration, global market and increasing competition, ever-topical question of the methods of competitive struggle. Obvious is the desire of companies to implement various managerial techniques and methods, hiding a surprise for opponents to direct market area. Using the appropriate set of strategic actions in certain market conditions, enables companies to build a sustainable advantage over competitors for long periods of time. In this sense, the determination of an appropriate business strategy is a key managerial task of projection on the future position of the market. Regardless of the degree of adaptability of the strategy chosen by the terms of the market environment, it can suffer failure if not properly supported by the price behavior of the firm. This is dictated by the fact that price is an intersection of interests of producers in terms of profit and consumer perceptions of the utility of the product. Thus, the price is a critical factor in achieving the desired objectives by management companies. The latter motivates many studies of the relationships between the chosen strategy and its projections in the process of pricing in the organization. In this sense, the purpose of the article is to identify the determinants of price behavior appropriate for the nature of the established business strategy. For full text only in Bulgarian HERE. |