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Price War Strategy (PowerPoint PPTX Slide Deck)
PowerPoint (PPTX) 23 Slides FlevyPro Document
DESCRIPTION
Many companies are competing on the basis of low prices. Yet, Price Wars represent a fundamentally different dynamic than simply trying to get an edge on price. These begin when competitors aggressively and repeatedly set prices below established levels. In many cases, companies that initiate Price Wars engage in self-destructive behavior, which can lead to downward pricing spirals.
Whenever Price Wars erupt, companies find themselves in commodity traps. Profits narrowed considerably and weak competitors had difficulty staying in business. It has been a common view that the way to winning a Price War is to have a superior cost structure. However, further studies showed that this is not the only way to gain the upper hand.
Under the right circumstances, it is possible for a company to win a Price War by leveraging specific set of strategic capabilities.
Winning a Price War is possible and even the weakest company can succeed. It just requires the ability to leverage strategic capabilities and master the 5 rules of engagement:
1. Prepare for Battle
2. Pick the Battlefield
3. Choose our Enemy
4. Stay under the Enemy Radar
5. Align Revenues with Cost Structure
Even if a company is at a disadvantage when it comes to cost, it can still launch a Price War and win.
This deck also includes slide templates for you to use in your own business presentations.
The Price War Strategy PPT delves into the critical decision-making process between skimming and penetration pricing strategies. It provides a detailed analysis of the pros and cons of each approach, helping executives understand how to capture consumer surplus and maximize margins. The deck emphasizes the importance of choosing the right battlefield and targeting specific competitors to gain a strategic advantage. It also highlights the necessity of aligning pricing decisions with the broader value chain and cost structures to ensure sustainable success. This comprehensive guide is essential for any company looking to navigate the complexities of price wars effectively.
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Source: Best Practices in Pricing Strategy PowerPoint Slides: Price War Strategy PowerPoint (PPTX) Presentation Slide Deck, LearnPPT Consulting
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