HOW SHOULD A COMPANY RESPOND TO COMPETITORS PRICE CHANGE?

IDENTIFY PRODUCT’S STAGE

IN LIFE CYCLE

Sales

Time

UNDERSTAND MARKET’S PRICE

AND QUALITY SENSITIVITY

UNDERSTAND AND ANALYZE

THE SITUATION

IDENTIFY COMPETITORS INTENSIONS

IDENTIFYALTERNATIVE

OPPURTUNITIES

HOMOGENEOUS MARKET

$

$

See if it is beneficial to industry

Enhance the augmented product

IN NON-HOMOGENEOUS MARKETS..

Why is the price change initiated?

PERMANENT

TEMPORARY

See if it is temporary or permanent?

IN NON-HOMOGENEOUS MARKETS..

How are companies profit and market share affected?

What are others doing?

LOW COST COMPETITORS

THEN, HOW TO RESPOND?

FURTHER

DIFFERENTIATE YOURSELF

Improve your Product / Service

Smaller cars at LESSER

prices!!

INTRODUCE LOW COST VENTURES

THEN, HOW TO RESPOND?

It’s time to create

something new

REINVENT LOW COST PLAYERS

THEN, HOW TO RESPOND?

THANK YOU