Competitive response

Question 1

What is the first step that we must consider in competitive response

Answer 1

If a competitors introduces a new product or picks up a market share , we want to first ask such questions :
What is the competitors new product and how does it differ from our product? Also what has the competitor done differently and what did change?Did any competitor picked up any market share ?

Question 2

What is the second step in the competitive response

Answer 2

The second step is to choose a response action such as:
Acquire the competitor or another player in the same market? We can also merge with another competitor to create a strategic advantage and make us more powerful? We can also copy the competitor? Furthermore, we can hire the competitors top management? Finally we can increase our profile with a marketing and public relations campaign.