5 Must-Reads on Pricing Strategies to Beat Price Wars

Picture this: One morning, you see Walmart slash cereal and milk prices, urging you to jump to Amazon’s website for price comparison. To your surprise, Amazon matches the prices and also adds free delivery. This looks like a steal deal at first glance, but it indicates the beginning of a Price War. Initially, a price war surfaces when one company collapses its pricing to attract consumers and intimidates competitors to follow suit to capture market share. This Pricing strategy makes companies attract immediate consumer attention, but in the long term, it squeezes profit margins and triggers destructive competition. In the beginning, consumers enjoy huge discounts and exceptional offers. Gradually companies trap them into hidden costs that emerge over time.

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