Is it possible to avoid such price wars? There are few things you can to do to try avoid price wars. Producers should manage their company`s capacity carefully, try to be consistent in response and move quickly, being informed about customer`s level of price sensitivity etc.
Probably a big part of managers may be involved in price war at some point in their career. Producers have to be very careful with taking a decision before price wars. It`s a good idea to consider other possible options before starting or responding to a price war. Price war can be also avoided by using different alternative strategies.
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