Price War

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Dictionary Says

Definition of 'Price War'

When companies continuously lower prices to undercut the competition. A price war may be used to increase revenue in the short term or as a longer term strategy to gain market share. Price wars can be prevented through strategic price management (with non-aggressive pricing), thorough understanding of the competition, or even communication with competitors.
Investopedia Says

Investopedia explains 'Price War'

When a company wants to increase market share, usually the easiest way is to reduce prices, which increases product sales. The competition may be forced to follow suit if its products are similar. As prices get lower the quantity of sales increases and customers receive the benefits. Eventually, a price point is reached that only one company can afford. Some companies will even sell at a loss in an attempt to eliminate the competition completely.
Search results for

'Price War'

  • Discount Dining Offers No Free Lunch For Investors

    http://stocks.investopedia.com/stock-analysis/2009/Discount-Dining-Offers-No-Free-Lunch-For-Investors-RT-DIN-EAT-BOBE-CBRL0713.aspx
    ... Price War Dominates Casual Dining Market But this uptick in customer traffic
    doesn't guarantee that the company can continue to maintain its earnings momentum ...

  • Why You Can't Influence Gas Prices

    http://www.investopedia.com/articles/economics/08/gas-price-emails.asp
    ... How? Because we all rely on our cars, we can't just stop buying gas, but we CAN
    have an impact on gas prices if we all act together to force a PRICE WAR. ...

  • What is an antitrust law?

    http://www.investopedia.com/ask/answers/09/antitrust-law.asp
    ... In order to avoid a price war, we sell our products at the same price to maintain
    margin, resulting in higher costs than the consumer would otherwise pay. ...

  • Why Airline Stocks Soared In 2010

    http://stocks.investopedia.com/stock-analysis/2010/Dec-Most-Airline-Stocks-Soared-In-2010-DAL-UAL-LUV-AAI-AMR-JBLU1208.aspx
    While 2010 was a good performance year for airlines, the industry will always be
    in a price war. And without competing on price, profits are hard to come by. ...

  • Can You Rest In Peace With Funeral Stocks?

    http://stocks.investopedia.com/stock-analysis/2011/Can-You-Rest-In-Peace-With-Funeral-Stocks-STON-SCI-STEI-HI-WMT-COST1018.aspx
    ... (NYSE:WMT) and Costco Wholesale Corporation (Nasdaq:COST) are waging a price war
    against funeral service companies. Traditionally, caskets are not inexpensive. ...

  • January's Worst Stocks

    http://stocks.investopedia.com/stock-analysis/2010/Januarys-Worst-Stocks-PCS-AMD-AIG-MOT-KLAC0201.aspx
    ... The stock has been caught in a vicious technical downtrend all year, fed
    recently by the widening price war in the wireless industry. ...

  • Buying Foreclosures At A Bargain Price - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0811/Buying-Foreclosures-At-A-Bargain-Price.aspx
    ... the bank may also be hoping to encourage a bidding war. Foreclosures in some markets
    receive multiple offers and can end up selling far above the list price. ...

  • Who sets the price of commodities?

    http://www.investopedia.com/ask/answers/06/commodityprices.asp
    ... The price of oil constantly changed in respect to what was going on in the war,
    and was also affected by the likelihood that Saddam Hussein would be able to ...

  • Taco Bell's Big Deal

    http://stocks.investopedia.com/stock-analysis/2010/Taco-Bells-Big-Deal-YUM-MCD-WEN-BKC0517.aspx
    ... Price Wars With the US consumer more frugal than ever, Taco Bell is clearly looking
    to hit other fast food chains squarely between the eyes. ...

  • The Insurance Industry Tug-Of-War

    http://stocks.investopedia.com/stock-analysis/2009/The-Insurance-Industry-Tug-Of-War-HIG-PRU-LNC-PFG-ALL-AMP0618.aspx
    ... The Insurance Industry Tug-Of-War. ... Price Decline Slowing Down A survey by MarketScout,
    which was similar to the one conducted by Towers Perrin later that same ...

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