Developi ng Pricing Strategi es 5 o f 5
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Developing
Pricing Strategie
s
5of 5
How should a company
respond to a competitor’s
price change?
The company needs to
consider things like product’s life cycle, its
importance in company’s portfolio, market
sensitivity etc.
The response varies according to the situation
It also needs to consider the why the price change occurred?
The competitor’s intentions, resources etc
Three possible responses to low priced
competitors
Further differentiate product or service
Introduce a low cost venture
Re-invent itself as a low cost venture
Created by Ronak Jain, NIT Surat, during an internship by Prof. Sameer Mathur,
IIM Lucknow.
www.IIMInternship.com
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