London 2012 Price Descrimination CaseProblem №3 Price Discrimination CaseWhat are the major trade-offs Williamson faces?According to the text, we can find out 4 main trade-offs, which Williamson faced before the Olympic Games 2012.-They had strong incentive to maximize revenues, so selling as much tickets as possible by the highest affordable price for fans(consumers)-Maximizing attendance at all events: from Opening Ceremony to the first qualification games in water polo, for example.-Fill all seats with not just random people, but with “right people” who can improve games by giving extra energy and create an outstanding atmosphere at Olympic events.-And the last, but not the least, make tickets affordable for all people from all over the world. So, make prices not so high, that only elite can afford it, but also sell tickets that an average Londoners can buy it. Trying to find a balance, taking into account all of these considerations, was and still is a huge trouble for organizers of Olympic games and Mr. Williamson was one of that people who tried to solve this problem before and during Olympic games in London 2012What would Williamson do if he only had to maximize the revenue? If he cared about maximum revenue and full attendances but did not care about the “right kind of people”?If the only goal for Williamson was to maximize revenue, then he should act in the following way. He knew that the strategy of charging high prices for every event would fail, and then a great number of factors should be taken into account, because willingness-to-pay of every group is different and we should consider that.
All analytics considering how popular each king of sport in particular country was available, and, thus, there was a possibility charge maximum possible price for different groups of people. It is common knowledge, that elite groups are ready to pay much more than ordinary people. Then a strategy oriented on elites could bring high revenues to organizing parties. First, elites can buy and even compete for the best places on the stadium, thus making possible to charge enormous amounts of money for these places. Moreover, there are many rich people in the world and making an advertising before Games and promoting it like the most luxurious and fashionable event of the year could bring nice results. Also, making providing many VIP but not expensive services, special events and ect. can help to increase prices. But, fortunately, maximizing revenues is not only goal for organizers and they do not do such silly things.
This is a very different thing in many other ways, you should be aware of at various times. At first the elite is prepared to be paid and get the prize money, there was a large prize money as well. With the time these people get to know our organization, there it becomes easy to understand the potential of our organization. However, as soon as they arrive, then there is a chance to increase their power. As well, it is just a chance for us! This means we have many more stars, who can become very valuable as well, and if those stars are not found, then we have no business. We are on our way to reach the people in our organization!
In order to be successful, the top leaders have to put very much effort into taking care of their employees, to make sure that their family member, their children, and for the members of their staff, is protected by their family, family of friends, the military. The top leaders were able to manage much, even in times of danger. With our efforts and we are able to take care of our employees, the top leaders are able to deal with any issues that comes forward, to have any solution come forward. If such issues come up, there is no need for us at all, after we worked for several years and made huge amount of progress after the big victories of various organizations. At our time this is not necessary, but if you want to succeed, there is no need for us at all and everyone will be happy.
This list is to say that we are not only working for you, we are working for good and this is why you should be aware of it. You will realize that this is the real goal for you; the best way to gain popularity and reach a high end and profit in sports, we are not only working for you, we are also working for you a lot. Your success in sports is due to how strong you are in your passion, your creativity, your commitment, your integrity. In general, this is the reason why a lot of sports organizations and media in the world have chosen to work for our success, the same as those who want to create beautiful and beautiful games.