Friday, August 6, 2010

Can Adidas control price in market?

Adidas is the firm produce sportwear, sport tools and other equipment. It has many competitors.Can Adidas control price in market?
No company can can control price of their products, or the category, but they can set a standard for other competition in the market. If Adidas and their main competitor bring out a running shoe for about the same price, Adidas can lower the price for competitive advantage, therefore Nike will also lower their price, but the process can work opposite ways too. Therefore depending on situation Adidas cannot control price in market, they can change it to an extend but nothing in external factors (Opportunities and treats) (politics, market, e.g) the only thing companies can control is internal factors such as strenghts and weaknesses.Can Adidas control price in market?
There are too many competitors in the market. They need to be smart and position themselves correctly, otherwise risk losing marketshare.
Manufacturer's can generally suggest a retail price. MSRP - manufacturer's suggested retail price. MSRP is a common practice in many industries, however, it is only a guideline. Supply and demand (popularity) are truthfully the bigger determinants of market pricing.

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