Strategic Management, Text and Cases by Pearson

INTERNAL ANALYSIS

93

profit in each exchange. Each buyer tries to buy as cheap as possible,

and each seller tries to sell as dearly as possible. Since all buyers will

try to buy as cheap as they can and all sellers will sell as high as they

can, open knowledge in the market drives all trades toward a ‘uniform

price’, which is a ‘just price’ emerging from the freely made decisions of

all the market participants.

How can a business push up this ‘just price’ for its product in the

retail store? Or how can a business push down its costs in the entire

manufacturing or production process so that it can sell its products at

or below the just price? ...