Competition is always in your face. You are Defending too much. But that could be counter productive. Be prepare to attack also.
What do most companies do when one of their major brands is hit by a price attack?The classis response is “wait and see.”
Wait and see if it affects our sales. Wait and see if the competitor can hang in there financially for the long haul. Wait and see if our customers come back after trying the low-priced alternative.
What would your company do if a major competitor suddenly cut its price substantially? Be prepared. The leader should be emotionally ready to strike back. What would you do? Are you sure?As the battle for Migraine Mountain proved, there would have been plenty of business for both Johnson & Johnson’s high-priced Tylenol and Bristol-Myer’s low-priced Datril. But it would not have been good strategy for Johnson & Johnson to share the market.
A live-and-let-live philosophy has no place in warfare. Companies like Johnson & Johnson and Procter & Gamble take no prisoners.
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