In the initial stages of the business, AfriNET IT will adopt a
penetration pricing approach by essentially pricing its service
solutions slightly lower than its competitors. Once the business has
penetrated the market, it will change its pricing approach to
competitive pricing where it will price its services in line with that
of competitors. Once the business is established and has built a
reputation, a value based pricing approach will be adopted.
The business will adopt a direct method of distribution meaning that it
will not make use of distributors or agents. It will serve the end
users of its services directly.