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Why some businesses win: competitive advantage and the economics of strategy

Testing pricing power: a 10 percent price rise

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The prompt

Illustrative numbers, fictional companies. Two juice makers in Saudi Arabia each spend SAR 2.00 to make and deliver a bottle. The branded one sells at SAR 3.20 and spends SAR 0.30 a bottle on marketing. The unbranded one sells at SAR 2.50 with no marketing. Both raise prices by 10 percent. The branded maker loses 4 percent of its volume; the unbranded maker loses 40 percent. What happens to profit per 100 bottles they sold before?

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