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Competitive Response Modeling
Predictive modeling used to anticipate how competitors might respond to your company's strategic moves, such as price changes, new product launches, or market entry.
Implications
The use of simulations and predictive models to anticipate how competitors might react to a company�s strategic moves, such as pricing changes, new product launches, or marketing campaigns.
Example
Example: A pharmaceutical company uses competitive response modeling to predict how its competitors will react to the introduction of a new drug, helping it refine its launch strategy.
Related Terms
Different from scenario planning, which explores a range of possible futures, response modeling specifically focuses on predicting and planning for competitors� reactions.
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