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Pricing Power

All articles tagged with #pricing power

business5 months ago

Temu Faces Pricing Challenges in the 2025 E-Commerce Battle with Amazon

Temu is struggling to rebuild its US online retail presence due to Amazon's dominant pricing power, which prevents Temu from offering significantly cheaper branded products. The company has faced challenges after changes in US import duties and has reduced advertising, leading to a sharp decline in active users. Temu's efforts to incentivize sellers and compete on price are limited by Amazon's ability to match or undercut prices, making it difficult for Temu to gain market share without risking losses or offering non-branded or discounted goods. The company advocates for fair competition amid these challenges.

via Financial Times|
#amazon#business#ecommerce
finance2 years ago

"Identifying Stocks with Weak Pricing Power for Outperformance"

Goldman Sachs' U.S. Weekly Kickstart report suggests that companies with weak pricing power may outperform as EBIT margins improve, with stocks trading at a 14% P/E discount to those with strong pricing power. The report highlights a portfolio of Russell 1000 stocks with low pricing power and emphasizes the potential benefits of improving profitability in a solid economic growth environment. The report also lists several companies with weak pricing power across various sectors, including communication services, consumer discretionary, consumer staples, energy, health care, industrials, information technology, and materials.

via Seeking Alpha|
#finance#goldman-sachs#pricing-power
business2 years ago

The Pricing Power of Corporate America: Pushing the Boundaries

Big companies in the US are increasingly experimenting with their pricing strategies, raising prices more frequently and using digital price displays to test what prices consumers are willing to pay. This trend has been supercharged by disruptions to supply chains during the pandemic, which pushed up corporate costs and forced companies to think more creatively about pricing. Despite easing costs, companies are eager to protect the high profit margins they achieved during the pandemic. However, with rising interest rates and reduced savings making consumers more price-sensitive, companies are now considering how to set prices to maintain profits as demand cools and overall inflation abates. The focus is shifting towards prioritizing profit margins over market share, with companies aiming for more profitable sales rather than pursuing volume. Retailers are also emphasizing inventory discipline to avoid selling products at clearance prices. While some consumers are showing price sensitivity, companies have found that they can charge more for certain products or brand them as luxury items. However, there are concerns that customers may start rebelling against further price increases as momentum slows in the economy.

via The New York Times|
#business#consumer-demand#corporate-strategy
business2 years ago

"Global EV Tax Credit Rules Shake Up Tesla, Ford, and China's Electric Vehicle Market"

Tesla's pricing power has been diminishing as it repeatedly slashes prices to remain competitive in the electric vehicle market. However, a rule change in 2024 could further hinder Tesla's ability to maintain its pricing advantage. The change in tax credit incentives means that some of Tesla's vehicles will no longer qualify for the full $7,500 credit, potentially dissuading price-sensitive customers. While the impact may be limited to a minority of buyers, it comes at a challenging time for Tesla, which is already facing slowing revenue growth and falling profits. This could lead to a significant sell-off in Tesla stock next year.

via The Motley Fool|
#business#electric-vehicles#pricing-power
gaming2 years ago

GTA 6 Publisher CEO Believes Videogame Prices Undervalued

Take-Two Interactive's CEO, Strauss Zelnick, believes that videogame prices are "very, very low" considering the value they offer in terms of hours of engagement and overall entertainment experience. He argues that the industry provides a great price-to-value opportunity for consumers, but this doesn't necessarily mean that publishers have the power to raise prices. Zelnick emphasizes the importance of delivering more value than what is charged to consumers and states that the recent price increase for certain frontline products was the first in many years. Other industry executives, such as Capcom's president, have also expressed the belief that videogame prices are too low given rising development costs.

via Rock Paper Shotgun|
#gaming#gta-6#pricing-power
energy2 years ago

Oil Market Resilience: U.S. Boom and Supply Tightness Counter OPEC's Pricing Power

The U.S. oil boom has weakened OPEC's pricing power as American producers flood the market, increasing competition and reducing the influence of the oil cartel. With the surge in shale oil production, the United States has become a major player in the global oil market, challenging OPEC's ability to control prices. This shift in dynamics has significant implications for the future of the oil industry and global energy markets.

via The Wall Street Journal|
#competition#energy#oil-market
business2 years ago

Automakers' Sales Rise Despite Global Economic Slowdown.

Carmakers, including Stellantis and Ford Motor Co., are expected to lose pricing power in a muted global economy as consumers feel the pinch of inflation and higher interest rates. Luxury car makers have proven less exposed, but manufacturers targeting mid-range buyers are already under pressure from successive price cuts by Tesla Inc. Stellantis dipped to a three-month low after reporting disappointing sales in Europe, where a downturn is looming. Ford anticipates more downward pressure on prices, now that supply-chain blockages have eased and more vehicles are being produced.

via Yahoo Finance|
#business#carmakers#ford-motor-co