2006-07-17 17:14:51 · 2 answers · asked by Anonymous in Business & Finance ➔ Corporations
Competition based on price is always a "last resort." You should try and compete on something else besides price...maybe service, quality, atmosphere, ease of use.
Its always sooo easy to say..cut the price. Your competitors can easily do the same. Then, it will be a war of attrition and everyone in the industry will be the loser...the winner will be the customer.
I say....if your industry or business is only based on price (most are not if you are creative)..only go the price reduction route if you believe you can outlast your competitor. If not, choose a different strategy. Read Michael Porter's Competitive Advantage to get some GREAT ideas on how to beat your competitors on other angles instead of price.
Be creative...price is usually not the best way!!
2006-07-17 18:15:40 · answer #1 · answered by None N 1 · 0⤊ 0⤋
Because you gotta make a profit.
2006-07-17 17:17:57 · answer #2 · answered by snvffy 7 · 0⤊ 0⤋