Recently, GE launched a major new initiative. A central Chief Pricing Officer who reports directly to Jack Welch coordinates the initiative across divisions. This represents a substantial upgrading of the pricing function, a shift which many other companies will emulate. This upgrading will also make the pricing function more attractive for high-achievers. Avoid aggressive pricing Achieving an attractive profit on low and aggressive prices is difficult.
Aggressive pricing works only with extremely low costs.
It is extremely difficult to replicate such attitudes or to work permanently under such conditions. I see a value strategy as a much better way. The aggressive pricing syndrome seems poised to prey on some of the more successful Internet companies. I have my doubts. According to a Wall Street Journal article, Priceline's lowest prices for car rentals are hardly lower than those of the rental companies themselves.