Action Plan to Shift the Case Company to a New Pricing Model
Engström, Erno (2023)
2023
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-202305109677
https://urn.fi/URN:NBN:fi:amk-202305109677
Tiivistelmä
The objective of this study is to develop an action plan to shift the case company to a new pricing model. The case company aftermarket uses a historic cost-based price list which is inherently dangerous in a fiscally fluctuating market. The parent company has developed a target return based pricing strategy to stay economically healthy.
The research approach of this study is applied action research and the study includes four stages. The first stage is a current state analysis describing the current pricing approach and summarizing the gaps between the pricing approaches. The second stage is a gathering of the existing knowledge of pricing transformations and pricing excellence. The third stage is an action plan co-creation of the initial recommendations with the case company operative stakeholders. The fourth and final stage is a validation round of the initial action plan recommendations by presenting the action plan to the case company management for needed feedback.
Several aspects of the pricing process needing attention were identified. Findings of the issues and weaknesses of the current pricing approach were the result of the stakeholder interviews. The means to counter these issues were sought from relevant literature.
The outcome of this study, the final action plan, provides comprehensive steps for the successful adoption of the target return pricing model. The successful adoption of the target return pricing model enables the case company to remain economically healthy. The economic success of the case company is beneficial for the whole turbo fan related operation.
The research approach of this study is applied action research and the study includes four stages. The first stage is a current state analysis describing the current pricing approach and summarizing the gaps between the pricing approaches. The second stage is a gathering of the existing knowledge of pricing transformations and pricing excellence. The third stage is an action plan co-creation of the initial recommendations with the case company operative stakeholders. The fourth and final stage is a validation round of the initial action plan recommendations by presenting the action plan to the case company management for needed feedback.
Several aspects of the pricing process needing attention were identified. Findings of the issues and weaknesses of the current pricing approach were the result of the stakeholder interviews. The means to counter these issues were sought from relevant literature.
The outcome of this study, the final action plan, provides comprehensive steps for the successful adoption of the target return pricing model. The successful adoption of the target return pricing model enables the case company to remain economically healthy. The economic success of the case company is beneficial for the whole turbo fan related operation.