The response of the powerful rivals,such as Sumsung,should also be take into consideration when it comes to price adjustment.For example,when Haier reduces its price,the competitors act as follows:
maintain the price,improve the quality of the merchandise and services.
reduce the prices,fight back by the competition of prices.
If there are many competitors,then the company has to estimate the possible responses of the entire competitors.If the competitors act in similar ways,then the company can only analyse one of them as a typical example.