How do you respond to competitors' price changes?

Brand leaders, when responding to a price cut by their competitors, should adopt different approaches based on the underlying reasons for the price change; some of them are as follows:

1. Follow the competitor's price change and reduce it accordingly while considering all the other variables affected by this decision.
2. Do not change the price if the profit margin is already thin.
3. Another approach is to continue with the current price while increasing the value of your products or services.
4. Businesses can also introduce new and innovative product variants while keeping the prices constant.