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Step 1: Recommend Defensive Dynamic Pricing Strategy

Your virtual internship coordinator has asked you to develop a defensive pricing strategy to respond dynamically to competitors' aggressive price reductions. He would also like you to include a brief overview on how to scale the implementation of your recommended strategy.

When to lower the product prices, and for how long.

Determine when and for how long to lower prices.

Having established which products to lower prices on and the amount by which you will lower prices, you now must determine when to lower prices, and how long to maintain the price reduction. Consider when it makes the most sense to lower prices. Defensive dynamic pricing by nature necessitates a fast reaction - you want to minimize the amount of business lost to your competitor's price adjustment. As you did when determining what the lower cost should be, think about when your e-business can offer a price reduction that keeps them competitive in the market. As long as the competition is offering a lower price, your e-business stands to lose customers. How does this help determine how long to maintain the lower price?