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Tweeter Etc

Solution Id Length Case Author Case Publisher
2854 1378 Words (7 Pages) John T. Gourville & George Wu Harvard Business School : 597028
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Tweeter faced intense competition from them and had to consequently strategically change its pricing strategy to gain an advantage over its rivals. The initial reaction from the company was to provide the customers with the lowest possible prices, which would be ensured using Automatic Price Protection (APP) policy. Adopting this approach did increase its revenue, but as Wiz, one of its strong competitors, entered the market, the strategy failed as Wiz focused on aggressive marketing. Tweeter refined its strategy to focus more on giving better experience to the customers. The CEO of Tweeter, however, was concerned regarding the pricing strategy and how it will shape the future of the organization. This case study in an analysis of the problems faced by retailers in an increasingly crowded market. It gives an overview of the two major competitors Tweeter and Wiz, highlighting the incorporation of a customer-centric approach and the overall positioning of the brand.

Following questions are answered in this case study solution:

  1. Read the case fully and explain what the core business problem is.

  2. What are the consumer segments as described by Tweeter? Do the segments "make sense"?

    - Create a table that has a column for each segment

    - In the rows, describe the product and experience attributes that each segment cares about

    - IF the need is unclear, you can say "unclear"

  3. Determine which segment that Tweeter cares the most about.

Case Study Questions Answers

1. Read the case fully and explain what the core business problem is.

The primary issue in the case study is Tweeter, a retailer of consumer electronics, and its approach to pricing considering the competition, notably with The Wiz's appearance on the New England market. The market's position and price strategy of Tweeter are jeopardized by The Wiz's arrival, however. The Wiz is a possible threat to Tweeter due to its aggressive advertising tactics and low prices. The main issue with Tweeter is a multifaceted one. Most importantly, Tweeter must appropriately react to The Wiz's arrival and the threat it presents to its position in the market. Because of The Wiz's competitive pricing and advertising techniques, it may lose revenue and income if users go to The Wiz instead of Tweeter. The Wiz has cheap prices, and Tweeter needs to find a method to match them while remaining profitable and popular with customers.

The efficiency of Tweeter's pricing plan, in particular the APP policy, is also called into doubt. The CEO of Tweeter, Sandy Bloomberg, begins to question the contribution of the APP to Tweeter's development and position in the market. Reassessing the effectiveness of the APP is prompted by The Wiz's arrival, especially considering prospective pricing wars. To preserve its edge over the competition, Tweeter must decide whether APP continues to be a workable pricing plan and whether changes or new strategies are required. To solve the fundamental business issue, Tweeter must thoroughly examine the dynamics of the market, customer behavior, and competitor dynamics. As a result of fierce pricing competition, Tweeter must also assess the value proposition it provides to customers, including individualized customer support and high-quality products, and decide how to best express this differential. The Wiz's entry has presented challenges for Tweeter, which include reevaluating the efficacy of their approach to pricing and developing an integrated strategy to maintain their competitive edge, economic viability, and client retention in the crowded New England consumer electronics marketplace. This is eventually their primary challenge.

2. What are the consumer segments as described by Tweeter? Do the segments "make sense"?

Customer Segments:

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