Microsoft`s New Pricing Plan: Is it Worth It?
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Case Code: CLMM166 Case Length: 5 Pages Period: 2021 Pub Date: 2022 Teaching Note: Available |
Price: Rs.200 Organization: Microsoft Corporation Industry: Technology & Communications Countries: United States Themes: Pricing, Competitive Strategy, Brand Loyalty, Product/Service Value |
Abstract
The case “Microsoft’s New Pricing Plan: Is it Worth It?” discusses the probable impact of the price hike of US-based multinational computer technology company Microsoft Corporation’s flagship product Microsoft 365. The case mentions Microsoft’s justification for the price hike. It provides details about the financial and market fallout of this particular move for the software giant. Given the rising competition in the SaaS space, it remains to be seen whether the price hike is the right decision.
Issues
- Examine the issues and challenges in pricing.
- Analyze how a price hike could impact a company.
Introduction
In August 2021, US-based multinational computer technology company Microsoft Corporation (Microsoft) announced that it was increasing the price of its software as a service (SaaS) offering – Microsoft 365 (See Table I). The company called it “the first substantive pricing update” since it had launched Microsoft 365, previously called Office 365, back in 2011. At that time, the company had shifted from the traditional licenses purchasing system to subscription pricing..
Keywords
Pricing Strategy; Software as a Service (SaaS); Subscription Model; Competitive Threats; Revenue Growth Strategy; Price elasticity of demand; Strategic Narrative; Communication Strategy; Impact of Price Hike; Customer Loyalty; Value Added Features; Initiating Price Changes; Pricing Decisions; Pricing Objective; Pricing Method
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