how should a company respond to a competitor's price change
TRANSCRIPT
DEVELOPING PRICING STRATEGY AND PROGRAMSPart
5
How should a company respond to a competitor’s price change
In Homogenous market
Price cut by competitor Price increased by competitor
-enhance your product-lower your price
Increase your Price accordingto buyer’s response
In Non-Homogenous market
Consider the following issue
Why did competitor change the price
Does the competitor plan to make the pricechange permanent or temporary
What will happen to company’s market share and profit
Are other companies going to respond
3 Possible responses to low cost competitors
Further differentiate the product or service
Introduce a low cost venture
Reinvent as a low cost player
Disclaimer
Created by Khemendra Raj Pingoliya, IIT Kanpur during an internship
by Prof. Sameer Mathur, IIM Lucknow.
www.IIMInternship.com
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