Mind Your Ps When Racing To Zero

Price wars are as dangerous as they sound. They flare up quickly as competing companies repeatedly lower prices to get ahead of each other. The constant undercutting can mean no real shifts in market share. There is also the possibility that no real winner emerges as prices rarely return to pre-war levels, and margin pressure and value deterioration can end up lowering profitability for the whole industry. Sadly, price wars are the rule, rather than the exception.