How should a company respond to a competitor's price change

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COMPETITOR’S PRICE CHANGES

Homogeneous Product Market -Other Firms might not match

Leader Rolls back!!!

Non-Homogeneous Product Markets -4 Issues

Resolving EXCESS CAPACITY

NO RESPONSES from our side Consequences

Others’ Possible Reaction

LOW COST COMPETITORS -Aggressive Price cutting

Differentiate Poducts

Introduce Low cost Venture

Reinvent as a Low cost player

Created by Subhasis Panda, IIT Bombay, during an internship by Prof.Sameer Mathur, IIM Lucknowwww.IIMInternship.com

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