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