Pricing Strategy for a Tech Product with a Patent Expiry
Instruction: How would you adjust the pricing strategy for a tech product as it approaches the expiry of its patent?
Context: This question evaluates the candidate's ability to strategize for market changes that could lead to increased competition and potential price drops, ensuring sustained profitability and market share.
Updated
Official answer available
Read the opening below, then unlock the full answer and practical guidance.
I would first ask qualified patent counsel to confirm which rights, claims, territories and dates are relevant. A product may involve several rights, and the expiry of one patent does not by itself tell us when a competitor can offer a substitute or whether another product has freedom to operate. I would keep the commercial analysis separate from that legal determination.
Next I would model plausible entry scenarios: no near-term substitute, a limited alternative or a close competitor with lower...