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sameer-mathur
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When in case of a high product homogeneity:
If a competitor raises its price in a homogeneous product market, other firms might not match it if the increasing
will not benefit the industry as a whole. Then the leader will need to roll back the increase.
What will happen to the company’s market share and profits if itdoes not respond?
Are other companies going to respond?
THERE ARE THREE POSSIBLE RESPONSES TO LOW-COST
COMPETITORS
#1 Further Differentiate the Product or Service