Essay: Fingerhut’s Price Strategy

Stakeholders are defined as a person, group or organization that has direct or indirect stake in the organizational activities and have impact on them due to organizational activities and policies. Stakeholders of an organization can include customers, competitors, employees, society, government, shareholders, creditors etc (Kotler, 2009, p. 121).

Similarly, Fingerhut Company too has a list of stakeholders that have impact due to the activities of the business. The primary stakeholders of Fingerhut Company include the customers who are actually being served by the company. Fingerhut Company had been catering those customers who have low income level and by interacting directly with them, they become as Prime Stakeholders. The other primary stakeholders are the competitors whose activities have direct impact on the business. K-mart, Wall-mart, Sears and J.C Renney remain the competitors (stakeholders) too. The secondary stakeholders for Fingerhut Company are brokers and other financial institutions that are available to provide financial assistance to customers willing to make credit purchases.

All the stakeholders have their certain interests which they expect from an organization to take care of. In terms of Fingerhut’s Company and its stakeholders, the customers which itself are the stakeholders expect that the company adopts a pricing strategy that favors them. The financial institutions that are assisting the customers expect that the customers must fulfill the criteria of getting assistance and then pay back within prescribed time span. The converging point in terms of interests of stakeholders is that the company wants the customers to have buying power but then it conflicts with the financial institution which are concerned about recovering the money which they lend to customers to make credit purchases.