

Competitor launches a better product at lower price. How do you respond? - hiromichi
http://www.quora.com/Youre-a-product-manager-and-product-is-set-to-launch-on-Tuesday-On-Monday-a-competitor-launches-a-better-product-at-lower-price-How-do-you-respond

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johnrob
Trick question. Respond to customers, not competitors.

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patio11
I do not see any information in that scenario which would cause me to rethink
my product or marketing strategy.

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Joakal
What kind of project do you have? First-entrant, stealthed or not etc?

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patio11
None of the above. Projects are in my profile.

I think substantially identical or better products are often outcompeted
either by niche selection or marketing execution, and think that if price
matters in your market you already have a problem in your business plan.

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lsc
> [I] think that if price matters in your market you already have a problem in
> your business plan.

I think this is one of those rules of economics that holds true until most
people start believing it. The thing is, most businesspeople and investors
agree with you; they run in terror from any business where price has anything
to do with the costs involved.

This means that the market is pretty much wide open. /especially/ if you have
technical skill laying about and are willing to give it a go without investors
or MBAs.

I mean, right now my customers are overlooking the fact that I lack some of
the important features my competition has /and/ overlooking my horrible
marketing, in exchange for around half off. I'm profitably out-competing
absolutely huge companies on price, in a market that is generally considered
to have large 'economies of scale' effects.

I think the thing is that larger companies don't want this part of the market,
because if they lent their credibility to the low end, they'd cannibalize
their own higher-margin products. And smaller companies, well, they usually
need investment, and investors generally run screaming from any business where
profits are directly tied to costs.

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dablya
You people need to watch the Wire -
<http://www.youtube.com/watch?v=e40s0RELPCs#t=2m04s> :)

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middlegeek
Make your product better than theirs. People pay for quality.

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VladRussian
harakiri.

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zwadia
You take a contemplative whizz. And then go back and keep kicking arse.

