Category: Uncategorized
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Four Keys to the Tech Sector’s Power Game
Dear Friends, Here are the posts to catch up on since the last newsletter. The value of mail: When the US postal service raised prices for first-class stamps this month, it rekindled the old question about the value of old-fashioned mail. You can read the full post here. A split in the fashion market: People need a “portfolio”…
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Do prices decide elections?
Dear Friends, In the latest edition of the Game Changer Expert Interview Series, BCG’s John Pineda describes the nature of value sharing and how the pricing decisions companies make can impact society. You can watch the full video here. I recently joined Rohit Agarwal for his Strategy of Finance podcast, where we went into great depth on the topics of trust, fairness and…
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Why “free” is a wise price for Apple GenAI
Apple made its long-anticipated foray into generative artificial intelligence (GenAI) this week when it launched “Apple Intelligence,” which it described as a “personal intelligence system” for its portfolio of devices. For the moment, Apple will offer this system for free. This week’s newsletter looks at the role that “free” can play in the market for…
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The Insurance “Canary” in the Climate “Coal Mine”
Significant price changes may represent much more than short-term tactical adjustments in a market. Sometimes, they are ominous signals that a market is facing fundamental problems that may require radical solutions if buyers, sellers, and other stakeholders do not heed the warnings. The current market for homeowners insurance in the United States might be sending…
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Japan’s Tourist Surge: Can Differentiated Pricing Help Control the Overflow?
Japan has too many tourists. Is differentiated pricing the solution? This article reports that Japan attracted an “unprecedented” 25 million tourists in 2023, as travelers took advantage of a sharp decline in the yen over the last five years. That’s why some Japanese tourist attractions have implemented significantly higher prices for tourists than for domestic…
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How Walmart is rethinking the price tag
Dear Friends, In the latest edition of the Game Changer Expert Interview Series, BCG’s Javier Anta Callersten describes how advances in data and algorithms are enabling companies to make the transition from the Uniform Game to the Dynamic Game. You can watch the full video here. In case you missed them, here are the other posts since last week’s newsletter. Ham, bacon, and…
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How Temu Uses Psychological Hacks to Encourage Overspending
Is the popular e-commerce site Temu a sophisticated experiment in balancing supply and demand? Or is it a combination of a fun treasure hunt with games of chance? This article looks at some of the psychological effects that seem to drive the site’s growth and popularity, with low prices being only one factor. See the…
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Professional Pricing Society Keynote
In: Power Game
Jean-Manuel Izaret (JMI), the Global Leader of BCG’s Marketing, Sales & Pricing Practice, delivers a keynote speech at the 2023 Professional Pricing Society (PPS) Conference in Atlanta. He shares insights from the book “Game Changer: How Strategic Pricing Shapes Businesses, Markets, and Society” and discusses the importance of pricing in driving business growth. JMI highlights…
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Reddit adds ads
Reddit is opening up a new revenue stream by testing dynamic product ads on its popular social media platform. Launched about a month ago, the new initiative automatically places ads into active customer discussions about a potential product purchase. Their initial tests showed that the dynamic ads could almost double an advertiser’s return on advertising…
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How GenAI Makes Messy Data Useful
Dear Friends, In the latest edition of the Game Changer Expert Interview Series, BCG’s Rohan Kadakia explores how companies successfully make the transition from the Cost Game to the Value Game. Rohan identifies the challenges and the key factors that contribute to sustained long-term success in this transition. You can watch the full video here. In case you missed them, here are some…
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Apple Vision Pro use cases
Now that Apple’s Vision Pro headset has been available for a week, the focus of the discussion has shifted from its price point to another fundamental question: how will it create value? Countless naysayers have already said that the device will flop because there aren’t killer applications or use cases to justify anything close…
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Why Your Business Needs a Pricing Strategy—Not Just Tactics
🎙️ Just Released: My Podcast Conversation on ‘Game Changer’ and Modern Pricing Strategies 📘 I’m thrilled to share my discussion with Mark Gandy and the CFO Bookshelf Podcast is now available to listen. It was a fantastic discussion covering our new book “Game Changer”, and a deep dive on the art of strategic pricing, exploring…