I.

Statement of the Problem

a. What type of price strategy/positioning is being employed by Enercon based on the

case study?
= The typo of price strategy/positioning being employed by Enercon based on the case
study is the High-Price Strategy.

b. What is/are the factor/s that contribute/s to the success of the company using its price
positioning strategy?
= There are many factors that contribute/s to the success of the company using its price
positioning strategy like having superior value that is very important to its customers
and the one that sticks out the most is it’s because of their Special offer were the
customers have found it very attractive.

c. How can the company achieve success by using a different price positioning strategy?
= The company can achieve success by using a different price positioning strategy
specifically the Premium Price Strategy where they totally have the Highest Level of
Performance that they have superior product quality to give to consumers.

II. Areas of Consideration

a. It must include details and facts from the case, which support the answers to the first
and second question under the statement of the problem.
= It is said that the absence of a gear (the number one cause of a breakdown)is almost
can’t be seen at Enercon and it means that Enercon can guarantee its customer uptime
of 97% and that is an example of having Superior Value. The Special Offer that I’ve
mentioned earlier is that under its Enercon Partner Concept (EPC), a customer can sign
up for maintenance, security services, and repairs at a price which depends on the yield
of the Enercon turbine. In other words, Enercon reduces its customers’ entrepreneurial
risks by sharing those risks with the operator of the wind park. It really is an amazing
offer.
III. Alternative Courses of Action

a. It must contain at least two (2) courses of action, which answer the third question
under the statement of the problem. It must also present the advantages and
disadvantages of each course of action.
= There can be many possible alternative courses of actions like having control on the
value chain and providing prestige effects to the consumer. Enercon enjoyed a market
share of 55% in Germany in 2014; its global market share is around 10%. By controlling
the shares on the value chain in both local and global, it will be a huge advantage for
the company because your giving the best product for them for a good price for the
superior quality of your profuct.
By ensuring the quality of the products and services of their company, it convey and
confer a very high level of prestige to the consumers which is another advantage that is
good for the company.

IV. Recommendation

a. It must present the best course of action among the presented alternatives.
=

V. Problem Solving

a. It must present the step-by-step computation of the total product cost associated in the
operations of Enercon. The computation must be executed using MS Excel and must
follow the procedure of activity-based costing. (Refer to Pages 2-3 of 04 Handout 1.)

VI. Management Lessons Learned

a. It must discuss the personal learnings or takeaways from the case study.