Pricing Power Assessment

This problem practices a core concept in industry analysis, especially in TMT, where products can range from highly commoditized to deeply embedded in customers’ workflows. Candidates need to explain how pricing power relates to a company’s ability to raise prices without materially hurting retention, and how to think through the underlying drivers such as customer necessity, product differentiation, and the ease of switching to alternatives. Interviewers ask this because pricing power is a key indicator of competitive advantage, revenue durability, and margin resilience, all of which matter when evaluating businesses and building valuation judgments.