Stage 2. Competitive factors
Consider the impact this price may have on competitors? Will it compel them into pricing action? Does it create opportunities for them? Will it start a price war? Does the proposed price accord with current pricing assumptions in the market or is it a departure that may cause competitors to revise their own plans?
Beyond competitor responses, the potential price must be reviewed for reactions it may prompt from other bodies. Are there any stakeholders who have an interest in pricing? Government may interpret pricing that leads to unusually high margins, as an opportunity for a windfall tax. This has occurred in banking and oil markets.
Other parties, who may impact on the competitive context, are shareholders and ...
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