For each of the below situations, generally outline how the firm should respond. Choose from: Reduce prices No change to prices Increase prices Market Environment Situation: To communicate the high quality of your product against a new competitor The market that the firm operates in is deregulated (allowing more competitors to enter) A new substitute product/industry emerges
aSAP!!
For each of the below situations, generally outline how the firm should respond. Choose from:
- Reduce prices
- No change to prices
- Increase prices
- To communicate the high quality of your product against a new competitor
- The market that the firm operates in is deregulated (allowing more competitors to enter)
- A new substitute product/industry emerges
- A major increase in production costs occurs
- The firm is looking to benefit from economies of scale
- When you know that key competitors will always match your price changes
- To increase market share significantly
- For one of the firm’s brands/products that has increased its brand equity
- When the firm’s product is experiencing high seasonal demand
- When a major competitor leaves the market
[Hi! Thanks for the question. As per our Bartleby guideline we are supposed to answer only three sub-parts. As you have not mentioned three numbers, I am providing answers to first three sub-parts. Please post separate questions for next sub-parts.]
Competition has become the new face of business function and survival. Today, all the efforts and changes that an organization makes are all driven towards increasing the competitive standing in the industry. This is because there is a high flow of new entrants in the industry, constant technology up-gradation, changes in customer preference and trends, the evolution of online marketing and sales, etc. All these factors force a business to put in constant effort to survive the competition successfully. There are several indicators which the business firms can effectively use to measure their performance concerning competitiveness. These indicators when analyzed and used properly can be of great help in creating dominance in the market.
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