Flaviano, Joey

I. Statement of the Problem

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

The pricing strategy / positioning used by Enercon is a premium price. In this way, they provide
customers with the highest product quality service at a premium price. Because their customers are still
ready to accept the premium price of the product. Premium pricing strategies for their worthy
customers and it belongs to the global market.

b. What is/are the factor/s that contribute/s to the success of the company using its price
positioning strategy?

Customers are one of the factors that make a company successful in its pricing strategy. The price of
Enercon is so high that customers still have the price to buy it. Also, the success factor is the quality of
the products offered. You can easily attract customers regardless of the price. Customers also support
Enercon with all the concepts they develop or offer.

c. How can the company achieve success by using a different price positioning strategy?

Enercon stands out from other turbine manufacturer, even a high price. You have a loyal customer who
is ready to support your project. However, Enercon’s products are in the premium price range, so
choosing a high price range will somehow ruin their image and some customers. In addition , they are
trying to come up with new ideas and different models of products. Its’s an expensive compliment, but
the product is still of high quality to offer.

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.

Enercon shows that it uses premium prices because of its value and globality, so it has a market share of
10%. And they are the only viable wind power technology based on $ 660 million in financial revenue
and $ 7.83 million in after-tax profit. They are also the third largest manufacturer of wind turbines in the
world. Enercon is number one in terms of sales and profit after tax. In the meantime, Enercon`s
customers find it very attractive to have and support the concept of a pricing model. When more than
90% of the customers sign up to an EPC ( Enercon Partner Concept).

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.

If you want to innovate a new product or idea with a different model than the previous one, you can still
succeed. Wind power technology is already established and has loyal customers, so pricing is not
possible. Moreover, competition is still fierce, so there is a way for them to bring them to market.
Competitor will take this opportunity to become a rival. So it depends on how you escape from it. If
Enercon has a high pricing strategy, you may need to use ads and promotions to promote your product
in the market. However, advertising is rarely used in premium pricing strategies. So I suggest you stick
to your strategy for the high quality of Enercon and other competitors who can't beat their products

ADVANTAGES:
* Enercon has already set up of Its own company in the branch loyal.
* They have loyal customers.
* Enercon products are outstanding of quality.

DISADVANTAGES:
* New materials needed to provide.
* It must be costly and depends on its model and the quality they wanted.
* They will promote it again to the market to gain potential customer

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

We think the best to keep its previous products and prices as they are. But at the same time, they will
invent new models at high prices for other customers. They expand their thinking at the same time so
that it does not affect their image. The model and price are different, but the quality still applies. It will
continue to be a highly profitable wind power generation technology.

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.

You should be grateful for the support of your customers and not take advantage of their loyalty. Take
the risk first before making the successful. Spread your ideas.