When Challenged by an Aggressive Competitor, the Immediate Thought That

question 71

Essay

When challenged by an aggressive competitor, the immediate thought that comes to mind for many managers is to fight back and match the price cut. However, because price wars can be quite costly, experts suggest that a more systematic process should be followed. Describe the factors that a strategist should consider before matching a price cut by a rival.

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Definitions:

Ganglia

Structures containing a collection of nerve cell bodies, typically located outside the brain and spinal cord.

Peripheral Nervous System

The part of the nervous system that consists of the nerves and ganglia outside of the brain and spinal cord, connecting the CNS to limbs and organs.

Peripheral Nervous System

The section of the nervous system lying outside the brain and spinal cord, which contains all the nerves that connect the CNS to the rest of the body.

Central Nervous System

The Central Nervous System (CNS) consists of the brain and spinal cord, serving as the primary processing center for the entire nervous system.