What would you charge for Google Maps?

bizops Google tech technology
Recent activity on Feb 06, 2019
1 Answer
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Anonymous A asked on Feb 06, 2019

I was given this case and struggled quite a bit with it. I was wondering how you would approach a pricing question such as this one. Other similar ones might be:

Why is Amazon prime / Netflix / YouTube Red priced the way it is?

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Guennael
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replied on Feb 06, 2019
Ex-MBB, Experienced Hire; I will teach you not only the how, but also the why of case interviews

Seems like a standard pricing question. Answers could focus on:

- Value to the consumer (most likely the right / relevant answer since it will allow for price differentiation between various categories of consumers)

- Cost+ model, how much it cost to develop + some margin

- BATNA

...

PS: Other considerations include psychological impact of various price points, as well as one-off upfront fee vs. a monthly charge vs. "free installation, pay for the upgrade" -> cf. gaming industry.

Hope this helps

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Guennael

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