- Occur in tense competitive markets where business have to compete vigorously for market share.
- Prices are driven down so products offering poor value for money will not sell
- Costs are kept to a minimum and efficiency increases
- Better quality products will be on offer and customer service will improve
- Innovation is stimulated as businesses strive for a competitive advantage
- Consumers get more choice, better service and lower prices
- Inefficient businesses will face falling sales revenue, make losses and exit the market.
Monday, 2 January 2012
Price Wars
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