Your Main Competitor Just Went Free - Respond

What interviewers evaluate

• Do you resist the instinct to panic-match and diagnose first?
• Do you ask HOW the competitor funds free (bundle, ads, VC burn) and what that implies about durability?
• Do you segment your exposure instead of assuming all customers are at risk?
• Do you lay out response options with tradeoffs and pick one with tripwires?
• Do you show strategic literacy - price wars favor the structurally-lower-cost player?

A framework to structure your answer

1. Diagnose their move - free is a strategy, not a price: bundling, ads/data monetization, or VC-funded land grab? Each has different durability.

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