Professor Elam

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Well Priced Adequacy

Tuesday March 23 2010

Here is a great article pointing out that companies targeting the high end, Apple, and the low end, Accer, are doing well. Those in the middle, not so well. 

Nokia has twenty times the market share of Apple in phones but makes the same money. Interestingly the market for luxury cars is still quite good, I am stunned at the number of high priced small volume cars that seem to be selling. GM meanwhile is lost in the middle. 

The Accer strategy, like SW Airlines, is not to make a cheap but a reasonably good product that has the advantage of a lower price, great idea. Kind of like A & M San Antonio. 

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One response to “Well Priced Adequacy”

  1. Steven Beeler Avatar
    Steven Beeler

    Very interesting. Many believe that our country has a dwindling middle class. Politicians claim that the need for health care reform is to help protect our middle class and ease the health care burden that many feel. It seems that sales, in this case, almost resemble the idea that the gap between the classes is growing. Many are struggling and opt for a less expensive option while others are comfortable where they are and can afford luxuries.

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