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A. Lowering your prices? B. Matching your prices with theirs? C. Keeping your prices the same?
To servive in market, business man needs to make new strategy and alternative strategy in terms of competitive market. I want to suggest to reduce price means reduce cost and maintain the quality of product. A will be a best option.
Since you said biggest competitors, I'd assume1. that their USP is better than yours in this given case with sufficuent funds.
or
2. they have surplus monetary advantage and have no unique differentiators compared to your product/service.
If case1 is believed to be true, then my suggestions would be to lower the prices. If case2 is what we are talking about, then you can keep your price the same. In either way, I'd say that it depends on the quality of your service as well. Lowering prices can also send a wrong message, especially if you are a small firm competing with a bigger firm, so if lowering is required, and if there is no unique differentiators to hold on to, building that area would be a major concern for the days ahead.
In my opinion, keeping the price same is tough. In order to kee your price same, you need to provide the better products and services. And it is very hard to retain your customer base, equally chhallenging too.
Interesting question posted by Khatim Abbas Seed. But the answer of this question will depend on many other factors like wheather the demand of my product is going down because of competitior's price cut, what is the competitive advantage of my product, how brand loyal are my consumers etc.. It again differs from product to product or service to service. Its purely contexual and case based.
Well Mr. Khatim, what I think is that, it totally depends on the market share in present I am having and the brand name strength which is there in market.
But the main thing to notice is that, the products which were sold on higher rates before price war, they will continue to maintain that difference when they enter in price war in comparision to other brands who lowered their prices.
Keeping your price the same then add after sales services
Keep the price same. It will create a perception on buyers that we have edge over competitors offering.
Once it was the biggest competitors that mean he has the power of lower cost since he has the economies of scale, so the best action you should to do to keep your price and to focus on some added value.
If the demand is high, ill stick to my prices plus adding value to the services that I If the demand is fair and companies tend to be smart in investinhg on our services then I would match up my prices ONLY within my compset.
I ll try to keep the prices same and ll change marketing strategy focusing on Quality of product.
If it doesnt work then ll add some additional benefits with more buying. like another small product with buy2 and get this free.
not to go with an option with my opnion but I have tried to solve this through Game theory and find that the you have to follow the prisoners dilema as this conditon demads.
