The creator and president of Nuway Software (Nuway) must determine the pricing strategy for their new internally-developed cellular software product, Nulogic. Nuway develop custom mobile software application that present amazing competitive advantage to each of their customers ; no two software modules it develops are similar. Nuway is now prepared to market Nulogic as a stand alone product and has identified three unique customer segments: Corporate in-house programmers, competitors and independent software developers.
Nuway Software Case Study Solution
The business has followed a cost-plus pricing model and has maintained positive profit margins. The software business as a whole is moving towards value-based pricing, where cost is dependant on perceived value to the customer. The president doesn't favor value-based pricing and views it as price-gouging; nevertheless, he's aware that cost-plus pricing has limits with regards to cost correctness. By considering Nuway's abilities, the entire software industry and his own preferences, the president must determine how to price the new software.
PUBLICATION DATE: April 15, 2009 PRODUCT #: 909E05-HCB-ENG
This is just an excerpt. This case is about STRATEGY & EXECUTION
