stratmgmnt - Strategic Management Module 1 Homework...

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Strategic Management Module 1 Homework Assignment 1) Price wars can occur in almost any environmental condition if there are competitors to fight for market share. Usually, as we’re seen in economics, when supply is outweighing demand, the threat is more likely that there could be a price war. The implications of a price war for a company are when its competitors begin to cut prices, usually, as stated above, when the demand stalls or slows. A company can try to deal with the threat of a price war by competing on quality instead of price. They make customers aware of the risks of choosing a lower-priced option. Companies can even try to seek help from third parties such as governments, customers, and vendors to try and avert a price war where possible. 2) The Porter five forces model shows us potential entrants, substitutes, suppliers, buyers and the industry’s competitors & rivalries amongst them.
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stratmgmnt - Strategic Management Module 1 Homework...

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