Pricing strategy
The set of decisions concerning how a company sets and adjusts its prices, aligned to its objectives: margin maximisation, market penetration, price skimming, or tariff segmentation. Pricing directly determines profitability and perceived positioning.
In practice
Price skimming sets a high launch price to maximise margin from buyers with strong willingness to pay, then progressively reduces price to reach broader segments — Apple applies this systematically. Penetration pricing, conversely, sets a low entry price to capture market share quickly, betting on scale economies to restore margin later. Amazon Web Services penetrated the cloud market with this logic, forcing competitors to match its pricing across the board.