BM.de: A New Pricing Strategy

Abstract

As an online and offline retailer of baby products, BM.de is facing fierce competition from other baby product online retailers such as windeln.de as well as other B2C E-commerce platforms such as Amazon. If we take a look at Amazon, it is not difficult to find out that Amazon is using dynamic pricing as a main strategy to stay competitive in the market, price for a single product on Amazon sometimes changes every 10 minutes. This leads to its constant level of lower prices compared to other online retailers. This case introduces the overall market for baby products and market position of BM.de, facing price pressure from all kinds of channels, what should BM do to increase its market share? Should it conduct a dynamic pricing strategy when it is also exposed to certain risks once customers find out? If conducting dynamic pricing, should it apply both online and offline or should it stay price harmonious in brick-and-motor stores?