Price War

Price War I heard the news rough Jewel-Osco stores invention to cut their bells on many items up to 20 portion around April 2009. At that time Jewel-osco claimed that the federation tried to athletic supporter shoppers in the struggling economy. Then I found the hold about Dominicks, Jewel in food market store footing war by Anna Marie Kukec, it said about hows the grocery price war start and how the big retailer same(p) Wal-mart or organic super market like upstanding Food, think about the price war between Jewel-osco and Dominicks and how they react with the price competition. Once your companion cut your price and your competitor pass up their price to match. If one of you reduces your price again, the succeeding(prenominal) round of reduction starts. This is what we call Price War. In seem to be good for the client for the advantage of lower prices but price war put a circle of pressure to the humiliated local businesses who do not check deep pockets to fight in the price war and obviously, the undersize company go out close after they try to fence on the price alone. In the long term the customer will get in the problem too as only the few firm left in the attention, price will get high and might be higher than before the price war started. Some companies just imbibe that they can win the competition by having the lowest price.

As price is the revenue of the company, if we set the price too low, we will lose the companys profit margin and sometime(prenominal) it diminish customers perception of quality. We should avoid price war as much as possible but it seems like unworkable to avoid price war in some industry such as grocery store. I think company should find the other options to strengthen the company position and hamper the price competition. After I read the article about how to avoid the price war from The Advantage Inc. and Pricing strategies for small business fromAbout.com, I found out that it is important to company to analyze the competitors, company and customers very carefully. For the... If you want to get a full essay, order it on our website: Ordercustompaper.com

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