Understanding the dynamics of pricing strategy and competitive advantage : an action research on a regional ICT company in Asia

This thesis is an account of how I have generated my theory of practice as a pricing professional in an ICT company in Asia. My intent in undertaking my action research originates from my company intention to move away from the traditional cost-plus pricing strategy to a value-based pricing strategy in its global data connectivity services business to differentiate ourselves from cost-driven rivals. My inquiry focuses on exploring my understanding of how I have facilitated my company in implementing value-based pricing (VBP) strategy in channel partner pricing program and pricing empowerment framework, and how the integration of VBP in these action research projects help enhance my company’s competitive advantage. Firstly, the cases used in the channel partner pricing program showed that my company tried to understand the channel partners’ desired value perception and improve our bargaining position as a means to improve value capture. Secondly, the pricing empowerment project showed the interaction within internal stakeholders and how I influence the change in mentality and create a shift from a one-size-fits all pricing empowerment to one that focuses on strategic account portfolio management. In doing so, my action research study contributes to the literature on customer value, organisational capabilities and business model in previously unexplored areas. Moreover, my action research project also guides business practitioners who are willing to develop VBP as part of their business model.