Price Adjustment after Brexit


Added on  2019-09-23

2 Pages377 Words173 Views
The recent price increase of Dell Products has been taken into consideration for the study. The competitor that has been considered is HP Inc. and the target market for both the product is United Kingdom.After the involvement of Britain in the country’s exit process from the European Union, the value of sterling has gone down in comparison to the dollar. Therefore, considering this move the company has taken decision to increase the prices of its products as the component costs of brought in the company are priced in dollars. The company has made the decision to keep the profitability stable (Dell-Slump, 2016). The change in the price is around 10% to 12% which is similar to the fall in the value of sterling.Considering this move of Dell Inc. and change in the profitability, the HP Inc. has also guided itsdecision towards changing the price of its products. The company has also raised its price on the same percentage line (HP-Post-Brexit, 2016).One of the conclusion that can derived at this point is that the HP Inc. could not have reduced its price as its main competitor Dell was selling its products at the earlier price and the first move ofHP Inc. could have impacted its profitability. However, after the decision of Dell to increase the prices, HP considered the decision to increase the price also as it is now less likely that the customers of HP will switch to Dell. The factor to consider price change was external and it can be stated from here that the collectiveincrease in the prices have been witnessed. Therefore, the overall impact on the competition can be considered as null.
Price Adjustment after Brexit_1

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