Case Analysis: Regal Electrogas: Price Leader or Price Follower
Please address the following:
Question 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?
Question 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?
Question 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.