Chapter 8

Cost-Price Leadership Quad

Here are three deadly sins, according to Drucker: (1) Worshiping high profit margins and “premium pricing”; (2) Mispricing a new product by charging “what the market will bear”; (3) Cost-driven pricing

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Your company moves into the most competitive of quadrants when your products reach product life cycle (PLC) maturity and are on the way to decline. All products (and services too) arrive at a terminus where they are no longer in vogue, have fewer buyers, and then only at the lowest of prices. It is unfortunate to see large companies apply the most basic and incorrect action to try and resurrect their ...

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