Price wars - Реферат

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Law of nature: the fittest survive. Price war - one of strategies of companies to become a leader. Determination of a price war, positive and negative effects on firms, customers and the public. Possible tactics. Price war in hotel industry.

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Erasmus University Rotterdam School Of Management Price wars by Vlada Butcyk Rotterdam 15/11/2011 Introduction There is a well-known law of nature: “the fittest survive” but it is not only about animals and plants, it also applies to humans and all sides of their lives including economic one. The world is developing in direction of mind power but people and companies still try to find their strong points and the best strategy to win in the struggle for survival. Price war is one of strategies of companies to become a leader. It is assumed as a progressive and often sharp reduction by competitors in prices of goods and services sold on the homogeneous market. It is not an invention of the modern world, this tactic of the fight came into existence with the emergence of business and capital. Since the economic world doesn’t stand still but develops, markets are growing and competition is increasing. Under such conditions companies more and more use price wars as a key to the victory. Being the member of this kin

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