Our (Time Warner’s) only competitor is District X currently provides bundled services

Our (Time Warner’s) only competitor is District X currently provides bundled services
at $84.95. We are currently charging a 10% premium over their price, but there are unsubstantiated rumors that they are contemplating a 10% price increase. We don’t know their cost structure, so we don’t know whether their potential price increase is driven by cost increases or is merely a strategic move on their part.
Historically, when we both charge the same price, our market share is about 65%. When we charge a 10 percent premium over their price, our market share declines to about 60%. It appears that in those instances where they have charged a 10% premium over our price, our market share is about 70%. Please provide a recommendation regarding whether we should maintain our current price or reduce our price to $84.95.
Please factor into your recommendation that we pay programming fees to providers that amount to $32.50 for each subscriber. In addition, maintenance, service and billing costs are about $7.60 per subscriber. At present, there are about 110,000 households in the relevant area.
1. Draw the payoff matrix (note that Time Warner and District x are the only ones in the market.
2. Based on the payoff matrix what recommendation would you give regarding whether Time Warner should maintain its current price or reduce it to $84.95? Explain your answer.

Calculate Your Essay Price
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Order your essay today and save 10% with the coupon code: best10