Stay Strong – How to Fight a Price War

More than half of all companies worldwide believe they’re involved in a price war. What do they have in common? Most think it’s not their fault and blame their competitors, but logically speaking, this can’t be true for everyone. Let’s look at why price wars flare up so quickly and what companies can do to avoid them.

Price wars sound dangerous, and they are – for everyone involved. They happen when companies in very competitive markets repeatedly lower their prices to get ahead of their competitors. Most of the time, their main goal is to increase their market share. However, not only do price wars fail to achieve this, they end up lowering companies’ profitability by causing margin pressure and value deterioration. 

The free-for-all battle: Why do price wars start?

Why do companies find themselves participating in price wars time…