Optimal Pricing to Maximize the Overall Profit while Launching a New Product

Due to globalization, rapid technological changes, keen competition and segmentation of market made PLM (product life cycle management) the most critical issue to hi-tech industries. Among them, such as information technology, semiconductor, photo-electronics and aerospace industries and they are sensitive to price-setting in corresponding to stages transition to lead to a precise control over PLM. The primary concern of this study is to analyze the relationship between price-setting and each stage of product life cycle then develop an analytical model to identify the optimal price-setting point against stages transition to maximize overall profit. This proactive model is verified by an illustrative example to ensure the feasibilities of applications.