Did netflix raise price enough

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Below is a discussion answer to the question"can you think of real-world examples of organizations raising prices not enough?

Did Netflix Raise Price Enough?

Can you please comment on:

All you are saying is correct. My observation is that Netflix has learned to take price hikes slowly. They benefited significantly in the short run due to inelastic demand (a higher price produced higher revenues and eventually raised their stock price). Since then, new competitors have come into the market. So, they need to take price hikes even slower. In fact, Netflix has been rolling out its price increases gradually since then but has been creating more sophisticated schemes of price hikes to keep the customer base intact. So, how would you estimate your own price elasticity for Netflix?

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This paper provides a comment on the discussion “can you think of real-world examples of organizations raising prices not enough?(Did Netflix Raise Price Enough?). Accordingly, it is established that Netfix was able to realize increased revenues due to price increase of its services and products. However, the emergencies of competitors in the market have seen the firm’s revenues drop and its debts increasing due to a decrease in demand and customer purchases. In this perspective, it is advised that the company should reassess its pricing strategy as well as the quality of its offerings to improve demand.

Reference no: EM131977768

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