This is a discussion board post, please reply:

I would advise the CEO of Martinsville production that this has the potential to be a pitfall and to tread carefully. "Price is just one component of value. No matter how good the price, the most cost-sensitive consumer won't buy a bad product" (Dess, 2018). Going in with a lower price will not matter if his competitors have a better quality product. Even in the youtube video"The five Forces That Shape Strategy" (2008), they make a statement referring to the fact that quality of a product has a lot to do with the price (obviously not word for word quotes there). The CEO is dealing with 3 of the 5 of Porters 5 forces I.e the Power of suppliers, power of customers, and the competition. Rolling in and low balling the price could backfire if his product is not on-par or better thanhis competition. Final advice would be for him to look at the quality of the manufacturing if he decided to go ahead with his plan and ensure that it is up to par with the competition. Jeez, that brings in another question that if it is not the same quality or better, can he afford to come in with a lower price and increase the cost of production to reach said quality? This CEO seems like a maverick shooting from the hip and I am not comfortable with his style management.