Product: iPad Air 2 16GB WiFi
Price comparison
Factors that affect global pricing
Nature of product and industry
The factor provides flexibility of the product which is important in competing with rivals. Products that give a technological age require flexibility where there are price adjustments according to the global market threats available. Prices, therefore, can raise or fall depending on the competition and threats that are available in the global market.
Goods exported to foreign markets are less likely to experience price flexibility. However, when the companies manufacture in the global markets, they are able to absorb factors such as currency rate variations. Additionally, location of a production facility determines the cost of production overheads that will be incurred by the company. In the case of Apple Inc. production in china has helped the company reduce the cost of production at the same time maintaining the quality of products.
Foreign currency discrepancies
This is an important factor in determining the setting of global pricing of a product. Appreciation or depreciation of a currency is highly affected by inflation and price controls which also hinder market entry of products. Currencies can vary from time to time and companies are to ensure that there is flexibility in the pricing strategy.
Distribution system
The factor is important especially where a company is exporting to a global market where it is penetrating. A company is able to control the final product price more when its distribution is through its own overseas subsidiaries. It is easy for the companies to adjust prices and adapt to the competition in this case.
