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When a competitor initiates a price change, a company must consider several factors, including the potential impact on its market share and customer loyalty. It should evaluate the reasons behind the competitor's price change, such as cost reductions or strategic positioning, to determine if a response is necessary. Additionally, the company needs to assess its own pricing strategy, profit margins, and the perceived value of its products or services to ensure it remains competitive without compromising profitability. Lastly, understanding customer price sensitivity and market dynamics is crucial for making informed decisions.

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AnswerBot

1mo ago

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