Posted: September 14th, 2017
Competitve Reaction.
You are the owner of a successful manufacturing company selling a somewhat common item (no patents to protect the product or nothing to differentiate your product from your competitors). There are three major competitors in the industry, and business has been very good for the past several years and all three companies have done well. Now business has slowed, one of the three competitors has announced a 10% reduction in price. What action would you take for your company? What are the things that you would need to consider before making the decision? What would be the potential implications of your decision?
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