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Price war is a term used in business to indicate a state of intense competitive rivalry accompanied by a multi-lateral series of price reduction. One competitor will lower its price, then others will lower their prices to match. If one of them reduces their price again, a new round of reductions starts. In the short-term, price wars are good for consumers, who can take advantage of lower prices. Often they are not good for the companies involved. The lower prices reduce profit margins and can threaten their survival. In the medium to long term, they can be good for the dominant firms in the industry. Typically, the smaller, more marginal, firms cannot compete and must close. The remaining firms absorb the market share of those that have closed. The real losers then, are the marginal firms and their investors. In the long term, the consumer may lose too. With fewer firms in the industry, prices tend to increase, sometimes higher than before the price war started. From Wikipedia under the
GNU Free Documentation License  longbox.net 200px x 127px | 28.50kB [source page] Star Wars 18 Price $8 99  longbox.net 200px x 130px | 32.90kB [source page] Star Wars 38 Price $4 99  longbox.net 200px x 131px | 23.20kB [source page] Star Wars 42 Price $4 99 From Yahoo Image Search: "Price wars"  demicooper.com Teresa Britton Wed, 05 Aug 2009 15:36:55 GM Some of the big players have resorted to moving forward with one of the biggest industry faux pas, slashing rates. Some as much as 50 percent. But cutting prices isn't the answer, it only leads to . price wars. and the deterioration of the ...  contentsutra.com Cerius Shah Wed, 12 Mar 2008 18:48:00 GM Eros Ties Up With Wal-Mart; . Price Wars. Hit DVD/VCD Industry. Comments (0); Text Size: A A; Print · Email · Share. Eros international has announced its collaboration with retail muscle man, Wal-Mart (NYSE: WMT) to sell Bollywood content ...  insurance-quotes-4-free.net insurance-quotes-4-free hu, 30 Jul 2009 04:00:07 GM Price wars. are causing insurance rates to drop drastically. Take advantage of this. From Google Blog Search: "Price wars"  news.google.com Montgomery Advertiser It can be everything from a double cheeseburger costing a dollar or less, a full-size sub sandwich costing $5 or a complete meal for a low price . ... and more » news.google.com AnnArbor.com Here's the latest round in the war between Meijer and Walmart over prices this season: Toys. On Wednesday, the Walker, Mich.-based Meijer Inc. announced it ... and more » news.google.com Economic Times new delhi: Bharti Airtel has launched a new mobile phone tariff plan with 60 per cent lower roaming rates, opening a new front in the ongoing price war that ... UPDATE 1-Bharti slashes mobile roaming charges, shares fall Reuters Bharti Airtel Mobile Roaming Tariff Slashed india-server.com Bharti roaming rates to spark fresh tariff tussle Calcutta Telegraph all 62 news articles » From Google News Search: "Price wars" Where could i buy a Star Wars Republic gunship for a cheap price? Q. I've been looking for this toy for a long time. It is the big vehicle kind not the lego , the titanium,or the transformer type.Is there any store or online store that will sell this item for a good price? Asked by BRYAN - Thu May 29 23:34:11 2008 - - 4 Answers - 0 Comments A. They will be rereleasing it around August to coincide with the Clone Wars television program. No details yet on what the coloring will be. Answered by mc hammertoes - Fri May 30 05:43:58 2008 Does anybody know where one could buy star wars lightsaber replicas for a good price? Q. I know, it's geeky but I can't resist! without the blades Asked by Gooble G - Sat Jan 5 19:44:11 2008 - - 2 Answers - 0 Comments A. Try, sharper image...I think you can find them online. NOT at all my Neighbor is MALE 39, NO KIDS and he got his at The Sharper Image. It not only lights up but, it makes the Sound also! Answered by Trouble - Sat Jan 5 19:50:45 2008 who wants to start a gas price war?
Q. I have an Idea that may incite a price war in the way the consumer wants it on major fuel companies. for one month,(I am thinking all of June) if everyone chooses one major company, and not purchase any fuel from them. their profits will plummit. I would say all, but then it wouldn't work, Americans use too much fuel and are dependant upon it. I say either BP or EXXON/Mobile. what do you think, and will you Join in? and yes I know that oil is sold to the US in one single stock, but it is these companies that are willing to let the arabs sell it to us at these prices, or jacking them up for ourselves. the physical cost of refining oil has gone up at a steady 5.34% since 1958. that is alot less than the average of 6.34% of inflation… [cont.] Asked by godz68impala - Sat May 26 15:21:56 2007 - - 8 Answers - 1 Comments A. I had actually suggest this same thing in one of my answers and then discovered the FLAW Big Oil will take care of each other, the stations that we do purchase from will raise their prices and claim a shortage. We will be sitting in long lines like we did in 1976 waiting to buy gas, so while we are boycotting one (or 2) companies the remaining companies will continue to raise prices making everything even worse. When we decide to go back to BP or Exxon/Mobile their prices will be higher than before we started. I looked at this scenario for quite sometime before I realized that it just won't work unless we can get Congress involved. Oil was deregulated in 1996 and has been going up ever since, now we need to put those regulations back in… [cont.] Answered by justgetitright - Sun May 27 01:08:37 2007 From Yahoo Answer Search: "Price wars" |
