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| Author: | Bourdon, E. |
| Title: | Pricing strategies in highly competitive markets |
| Journal: | Management Decision
1992 : VOL. 30:4, p.57-64 |
| Index terms: | PRICING STRATEGY MARKETS COMPETITION |
| Language: | eng |
| Abstract: | In most highly competitive markets, the use of certain strategic and tactical pricing practices is a key factor in determining profitability. The extent to which these practices can benefit a firm is discussed. Evidence from research conducted in the markets of two groups of industrial distributors (paper merchants and engineers' distributors) suggests that price wars are inevitable under certain market conditions, and that a strong and defensible position in the market is a necessary prerequisite for control of price levels. The purchase of market share by investment, rather than competition, emerges as the preferred strategy for firms wishing to make a long-term commitment to remaining in a highly competitive market. |
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