Responding to Competitor’s Price Change

Ankeita MallS.G.S.I.T.S.

How should a company respond to a competitor’s price change?

Things to be kept in mind before responding

1

2. Competitor’s Intentions and Resources

3. Market’s Price and Quality Sensitivity

4. Behavior of cost with volume

Responding to a Low Cost Competitor

Further Differentiate the Products and Services

Introduce Low Cost Products

Increase Price and Quality

Reinvent your Product

RECAP• Things to be kept in mind before responding1. Product life cycle2. Analyzing Competitor’s intentions and resources3. Market’s Price and Quality Sensitivity4. Cost with Volume Behavior

• Ways to Respond to low Price Competitor1. Further differentiate products2. Introduce low cost products3. Increase price and quality4. Reinvent your product

Created by ANKEITA MALL, S.G.S.I.T.S. , during an internship by Prof. Sameer Mathur, IIM Lucknow. www.IIMInternship.com