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Pursuit of increasing market share

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Reference no: EM133146440

John's company currently has a 40% share of a 1 million unit market. The current price for his product is $100, but in a direct attempt to gain market share from a competitor, he is considering lowering the price of his company's product by 10% in an attempt to increase market share to 50%. Marketing expenses and cost per unit will remain at the level of 15% of sales and $70, respectively.

1. Mini-Case Question. What type of competitive strategy is John considering in the pursuit of increasing market share?

Reference no: EM133146440

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