Case Analysis: Regal Electrogas: Price Leader or Price Follower
Please address the given:
Problem 1: Regal's pricing seems to be in the middle of the pack of the competition. Is that a good place to be? If not, how should they price the desert cooler and why?
Problem 2: Ambassador seems to have the greatest brand equity. Think about how important that seems to be in this market. What does brand leadership mean in practical terms?
Problem 3: Clearly, Regal does not have deep pockets. How would you advise Mr. Ali on his immediate dilemma about whether to rescind his price increase, recognizing that a "wait and see" response itself would have consequences? Justify your response.