英语论文网

need to remember that strong laws and regulations exist to protect smaller players in the market. Thus it is always advisable for a firm to stay away from a price war. A price war does not help any firm in the long run and neither does it help the industry grow on the whole.

Conclusion 结论
The paper focuses on price wars as an industry wide phenomenon brought about not only by external market conditions but also by internal characteristics of firms like it's financial health, position in the market and even at times as part of a well thought market strategy. Invariably price wars impact profitability of the industry, with both initiators and followers in a price war end up without any sustainable advantage and an erosion of their economic value.

Companies do not always to respond by retaliatory price cuts as any such move erodes their brand equity, they instead want to focus more on quality as against price as a determinant of value. Even for customers, while such price cuts may appear beneficial in the short term, ultimately they lead to a risk of poor quality products/ services.

Because price wars are so destructive economically, all prudent organizations need to be prepared to handle such eventualities. Over time it is seen that while prevention is the best cure, there are some key steps companies have to take to prevent the onset of such an environment. Managers need to continuously re-examine their pricing initiatives to ensure that their actions do not contribute to any competitive misread and the creation or extension of a price war in the industry (Garda and Marn, 1993). By creating price leadership, companies avoid price cuts and retain profit margins by using different tactics from predatory pricing, financial punishment and diplomacy to rein in errant companies trying to initiate a price war . Finally price wars can never be won, the victor and the vanquished both suffer the effects to different degrees.
本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。