SR
ENExample situation: Competitor Cuts Prices by 30%
Suppose a competitor cuts its prices overnight.
Question
“Our main competitor has cut its price by 30%. The sales team wants us to immediately do the same because they fear losing market share. Should we match the price?”
What to question
Are customers actually leaving because of price, or is the competitor losing elsewhere (quality, support, delivery)? What does a 30% cut mean for your own margin over a year? How long can the competitor sustain that price?
How the depth changes
Focused → broader → deepest
Four perspectives quickly separate reflex from strategy: why the competitor actually cut price by 30% in the first place, how price-sensitive the…
Five additional perspectives challenge the sales team's fear-driven framing, model a downside where matching the price triggers a further round of…
Six further perspectives stress-test the margin and capital impact of an industry-wide price war the company didn't start, alternative structures…
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