Beauregard Textile Company

Executive Summary In a desire to affix the lodges working capital for the companys hereafter financial investment in a plant modernization and expansion program, Beauregard Textile come with increased the price of its Triaxx-30 output to bring its turn a profit margins up to that of their other convergences. In a sequential-move game theory Calhoun & Pritchard, Beauregards primary rival, did not effect its price even though its hails were assumed to be similar. As a result, Beauregards unit sales dropped importantly as their customers purchased the cheaper competitors product, causing Beauregards profit contribution to decrease. A closer examination of Beauregards cost analysis revealed that it includes fixed costs, which when excluded, the decision to raise the price of Triaxx-30 was unnecessary. Thus, when Beauregard increase its price, it was in the best interest of Calhoun & Pritchard to leave their price unchanged. In the end, Beauregard needs to reduce its price to its previous level in enunciate to regain the majority of the foodstuff share and increase their profits.

Brief Review of Issues Addressed in the Case The Beauregard Textile Company case begins with the sales manager and the controller for Beauregard evaluating their options to determine a pricing strategy for the next quarter of a framework product that has lost significant market share to a competitor. Over the past three quarters, Beauregard increased the price of its Triaxx-30 product from $3 per yard to $4 per yard. This increased price reflected an readjustment to bring the profit margin of Triaxx-30, referenced in the manufacture as T-30, to align with other products and recent increases in takings cost. Calhoun and Pritchard, Beauregards only significant rival in this market duopoly, typically announce their own pricing of the T-30 after Beauregard isthmus its fabric prices for the quarter. While Beauregard has increased its prices over the past a few(prenominal) quarters, Calhoun and Pritchard did not change... If you want to get a full essay, order it on our website: Ordercustompaper.com

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