1. Netflix faces challenge in raising prices as growth slow.

When they increase their price, the

customers demand decreased.
2. Netflix could use the Flat rates pricing model to avoid the given pricing problem.
They need to allow their users to pay one flat rate per month to have access with their available
movie that they offer.

HONDA

1. The pricing strategy that being employed by Honda is a “Low Price Strategy” because their
company provides a relatively low price to stimulate demand and gain market shares.
2. The factors that contributes to the success of company are “They began with a strategy from
day 1”because since the beginning of their operations, they have been focusing on the low price
and high quality and “They are extremely efficient” because their company operates with
extremely cost and process efficiency which enable them to enjoy good profit and margins even
while charging a low prices.

3. They can achieve success by using this different price positioning “Innovation is a foundation”
and “Consistent and high quality is a must” because their company developed a new model and
improved their products that makes them sustain a high price position in the market and
maintain a high and very consistent quality level. This two price positioning can help their
company to achieve success.