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The article “Pricing as a Strategic Capability” identifies Human Capital, Systems Capital, and Social Capital as key to creating strategic strengths in pricing capabilities. The article specifically mentions P&G and the friction created with distributors/customers when they implemented a form of EDLP several years ago. In the previous discussion, I linked a WSJ article about P&G (as well as many other firms) raising prices. What lessons from Operations Management class could lend insight into this “Three Capitals of Pricing” perspective and the necessity of raising prices?
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