Abstract

The case “Microsoft’s New Pricing Plan: Is it Worth It?” discusses the probable impact of the price hike of US-based multinational computer technology company Microsoft Corporation’s flagship product Microsoft 365. The case mentions Microsoft’s justification for the price hike. It provides details about the financial and market fallout of this particular move for the software giant. Given the rising competition in the SaaS space, it remains to be seen whether the price hike is the right decision.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Examine the issues and challenges in pricing.
• Analyze how a price hike could impact a company.

Keywords

Pricing Strategy; Software as a Service (SaaS); Subscription Model; Competitive Threats; Revenue Growth Strategy; Price Elasticity of Demand; Strategic Narrative; Communication Strategy; Impact of Price Hike; Customer Loyalty; Value Added Features; Initiating Price Changes; Pricing Decisions; Pricing Objective; Pricing Method