I'm not sure how to structure this case - there's a lot of things to think about e.g. short term reaction vs long-term reaction, shareholder response etc.
You are the CEO of a major phone company e.g. Samsung. You wake up to a phone call in the middle of the night and hear that one of your main competitors has just released a game-changing new product. What do you do?
[no additional data]
1. What is the aim of the competitor?
a. What is the new product, core value proposition and user base?
b. What is the key strategic objective of the competitor and along what time-frame? Entering new market, attracting new customers, gaining market share, loss-leader, long-term, short-term? etc.
2. How does this affect our top-line/bottom-line - projected impact?
a. Does this product overlap with any of our offerings in terms of functionality? i.e. Will we lose customers/sales due to product-related reasons?
b. Does this product overlap with any of our offerings in terms of brand? i.e. pricing, marketing message?
c. What is the response of the other competitors?
3. What is our response?
a. Do nothing (completely different audience, different product, no impact to our main strategic focuses).
b. Make plans for launching rival product (long-term).
c. Make changes to existing products (short-term) e.g price drop/rise, marketing message change.