how should a company respond to competitors price change?
TRANSCRIPT
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HOW SHOULD A COMPANY RESPOND TO COMPETITORS PRICE CHANGE?
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IDENTIFY PRODUCT’S STAGE
IN LIFE CYCLE
Sales
Time
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UNDERSTAND MARKET’S PRICE
AND QUALITY SENSITIVITY
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UNDERSTAND AND ANALYZE
THE SITUATION
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IDENTIFY COMPETITORS INTENSIONS
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IDENTIFYALTERNATIVE
OPPURTUNITIES
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HOMOGENEOUS MARKET
$
$
See if it is beneficial to industry
Enhance the augmented product
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IN NON-HOMOGENEOUS MARKETS..
Why is the price change initiated?
PERMANENT
TEMPORARY
See if it is temporary or permanent?
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IN NON-HOMOGENEOUS MARKETS..
How are companies profit and market share affected?
What are others doing?
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LOW COST COMPETITORS
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THEN, HOW TO RESPOND?
FURTHER
DIFFERENTIATE YOURSELF
Improve your Product / Service
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Smaller cars at LESSER
prices!!
INTRODUCE LOW COST VENTURES
THEN, HOW TO RESPOND?
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It’s time to create
something new
REINVENT LOW COST PLAYERS
THEN, HOW TO RESPOND?
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THANK YOU