Title: Lille Tisages

Essay Details

Subject: Business
Author: Penny D
Date: March 15, 2017
Level: University
Grade: A
Length: 6 / 1553
No of views: 0
Essay rating: good 0, average 0, bad 0 (total score: 0)

Essay text:

In 2002 the market share dropped to 30%, and then continued to drop in 2003 to 20%. See exhibit 1. This is believed to have been caused by Lille Tissages, S.A. raising the price of Item 345 from FF15.00/m to FF20.00/m in 2002, while the competitors kept their price atFF15.00/m. The reason for raising the price in 2002 was the need to bring the profit per meter up to that of other items on the line...

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Although the company was in a strong position financially, it would require considerable capital in the next few years to finance a recently approved long-term modernization and expansion program.1 Facing stiff competition the senior management needed to reconsider the pricing plan for Item 345. So in early 2004 they held a meeting to decide in which direction to go...

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