Submitted by: Saneel Gaonkar
Enrollment no: 10BSP0260
Subject : SDM
Predicting your Competitors Reaction
In the Article 'Predicting Your Competitor's Reaction' by Kevin P.Coyne and John Horn have highlighted the fact of how important it is to understand competitors response to your action but still most of the times companies neglect this fact, thinking that the competitors analysis is too complicated, But the response of the companies are fairly predictable to such move as new product launches and price change ,Only three questions have to be considered
* Will the competitors react at all?
* What options will they consider?
* Which options are they ore likely to choose?
Thinking about these questions will let help the company gauge competitors reaction.
Will companies react to all?
Companies have to know that sometimes competitors do not react to strategic move. Managers including who do not bother of competitive analysis at all are schooled in stories of companies that failed by ignoring their rivals so they are afraid that is assuming no reaction they will end up being protagonist in one of those narratives. The first step in analyzing competitor's reaction is to adder the chances of no reaction. To determine this one must answer four questions