Pricing at Vocram Airways (B) By Fredrik Odegaard, John Wilson (Case Notes /Answer with Free Case File)

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Stu O’Rory operated seaplane services to remote lakefront regions that were inaccessible by road or that would take a long time to access by road. Historically, O’Rory charged the same price for ... both public clients (e.g., researchers, scientists, and government officials doing remote fieldwork) and private clients (e.g., people going to their lakefront cottages). However, by August 2010, due to the financial crisis and the rise in oil prices, O’Rory’s profit margin had become so tenuous that he needed to revise his pricing strategy. Stu O’Rory operated seaplane services to remote lakefront regions that were inaccessible by road or that would take a long time to access by road. Historically, O’Rory charged the same price for both public clients (e.g., researchers, scientists, and government officials doing remote fieldwork) and private clients (e.g., people going to their lakefront cottages). However, by August 2010, due to the financial crisis and the rise in oil prices, O’Rory’s profit margin had become so tenuous that he needed to revise his pricing strategy. [Show More]

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