IZGRADNJE KONKURENTNOSTI PREDUZEĆA ZASNOVANE NA STRATEGIJI PROFITNOG UTVRĐIVANJA CIJENE
DEVELOPMENT OF COMPETITIVENESS OF ENTERPRISES BASED ON A PROFIT-ORIENTED PRICING

Summary/Abstract: The price of a product or service that company produces, represents the only element of the marketing mix that brings revenue, and in that manner it represents the most powerful profit lever to which the company can influence, since even the small changes in price have a significant impact on the amount of an achieved operating profit. In recent years, companies have paid much greater attention to other profit levers such as cost and volume sales, convinced that prices are already determined by the market and that the price level can be slightly affected. In this paper we researched steel industry in terms of selecting the best pricing models with special reference to the example of ArcelorMittal Zenica. On the example of Arcelor Mittal Zenica, the manufacturer of steel product that is focused on the Balkan region, we have shown that although they are standardized products, each manufacturer within the range of market prices form the price lists in accordance with their own business objectives based on knowledge of the customers' perception about the quality of their products and forecasting competitors activities. Since the profit level is low, it is necessary to pay special attention to pricing decisions because wrong decisions signifi cantly jeopardize profi tability. In this case, the incremental analysis of unchanged contributing profit is a useful tool that helps managers to make profitable pricing decisions, and to choose the one price-scenario or sales scope that maximizes the profitability, all based on the companies' goals, own costs and current market situation. A desk research method is used for data collection, and appropriate scientific method is used for processing of collected data.

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