how should a company respond to a competitor's price change
TRANSCRIPT
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DEVELOPING PRICING STRATEGY AND PROGRAMSPart
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How should a company respond to a competitor’s price change
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In Homogenous market
Price cut by competitor Price increased by competitor
-enhance your product-lower your price
Increase your Price accordingto buyer’s response
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In Non-Homogenous market
Consider the following issue
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Why did competitor change the price
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Does the competitor plan to make the pricechange permanent or temporary
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What will happen to company’s market share and profit
Are other companies going to respond
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3 Possible responses to low cost competitors
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Further differentiate the product or service
Introduce a low cost venture
Reinvent as a low cost player
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Disclaimer
Created by Khemendra Raj Pingoliya, IIT Kanpur during an internship
by Prof. Sameer Mathur, IIM Lucknow.
www.IIMInternship.com
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