10. Price Wars - PriceWars...

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Price Wars  No-nonsense advice on how to avoid the death spiral  of permanently lost profit, declining value, and  heightened price sensitivity. AUGUST 1993 • ROBERT A. GARDA AND MICHAEL V. MARN  Presented by: Saad Tariq, Salman Yaqoob, Shahraiz Chishti
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PRICE WARS P rice wars have impacted industry after industry in recent years: From personal computers to airlines,  From grocery retailing to computer software,  From cigarettes to frozen diet dinners,  From automobile tires to disposable diapers.  There are no winners— The destruction such battles cause can be so severe and  linger so long that the only reliable way to come out ahead is to avoid them  altogether. No company, however well run, is immune from price wars
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Topics Why companies should do everything they can to avoid price wars What has been causing their spread in recent years How to stay out of a price war; and If all else has failed, how to get out of one—and minimize the  damage.
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Why to avoid price wars 1.  Profits are extremely sensitive even to slight declines in average price levels. If price falls by a single percentage point and costs and volume remain unchanged, 
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10. Price Wars - PriceWars...

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