17. Outline a step by step process as to how a company should respond to a price war. . Cost structure and strategy of the competitor Interdependence between product lines Legal Consideration Your own strategy . . Competitive price cut or "low cost product entry No Accommodate or ignore Yes Is your No position in other markets at risk? Is there a response that would cost less than the preventable sales loss? Respond If you respond, is competitor Willing and NO able to reestablish the price difference? Yes Will the multiple responses required to match a competitor cost less than the preventable sales loss? Yes Yes Does the value of the markets at risk justity the cost of response? No No Yes Respond Respond