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COMPETITOR’S PRICE CHANGES

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

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Page 1: How should a company respond to a competitor's price change

COMPETITOR’S PRICE CHANGES

Page 2: How should a company respond to a competitor's price change

Homogeneous Product Market -Other Firms might not match

Page 3: How should a company respond to a competitor's price change

Leader Rolls back!!!

Page 4: How should a company respond to a competitor's price change

Non-Homogeneous Product Markets -4 Issues

Page 5: How should a company respond to a competitor's price change

Resolving EXCESS CAPACITY

Page 6: How should a company respond to a competitor's price change
Page 7: How should a company respond to a competitor's price change

NO RESPONSES from our side Consequences

Page 8: How should a company respond to a competitor's price change

Others’ Possible Reaction

Page 9: How should a company respond to a competitor's price change

LOW COST COMPETITORS -Aggressive Price cutting

Page 10: How should a company respond to a competitor's price change

Differentiate Poducts

Page 11: How should a company respond to a competitor's price change

Introduce Low cost Venture

Reinvent as a Low cost player

Page 12: How should a company respond to a competitor's price change

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