Competitive Response - Framework

Question 1

Sperry Topsider has developed a new non-slip sailing shoe that has been eating into the sales of our bestseller. The Commodore 2000. How can we respond?

How would you approach this problem?

Answer 1

1. If a competitor introduces a new product or picks up market share, we want to first ask:
   - What is the competitor’s new product and how does it differ from what we offer?
   - What has the competitor done differently? What’s changed?
   - Have any other competitors picked up market share?
2. Choose a response action

Question 2

What are some response actions a firm can take? (5)

Answer 2

1. Acquire the competitor or another player in the same market
2. Merge with a competitor to create a strategic advantage and make us ore powerful
3. Copy the competitor
4. Hire the competitor’s top management
5. Increase our profile with a marketing and public relations campaign