Explore BrainMass

Explore BrainMass

    Preemptive price reductions

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    A competitor of your pharmaceutical company is about to launch a product that will challenge one of your very profitable medications. At a marketing strategy meeting, one colleague recommends a preemptive price reduction to maintain market share. Discuss the pros and cons of this suggestion.

    © BrainMass Inc. brainmass.com March 4, 2021, 10:35 pm ad1c9bdddf

    Solution Preview

    Hello. I provide the following to assist you.

    The pros of a preemptive price reduction to maintain market share is that it may allow you to retain the current consumers that you have with your company as opposed to said consumers going to your competitors for similar products. Further, your consumers will be happier with the preemptive price reduction as it will ...

    Solution Summary

    This solution provides the pros and cons in utilizing a preemptive price reduction in order to maintain market share.