Profit Maximization, Monopoly and High Barrier of Entry for SaaS products: An application of the Golden Rule and the Optimal Pricing Strategy
Abstract
This paper deals with the application of the Golden Rule and the Optimal Pricing Strategy to a software as a service (SaaS) product in the legal technology space to achieve profit maximization and maintain its monopoly. As shown in the paper, for attaining profit maximization and maintaining the monopoly, a firm can apply three strategies- The first one is to reduce the price of the product, the second one is to create a segmentation of products, and the third one is to avoid a single optimal price to maximize profits. In addition to the above benefits, an Optimal pricing strategy and the Golden Rule can help firms create a high barrier to entry for competition.
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