Archive for the ‘Avoiding Price Wars’ Category

Identifying Competitive Advantage: Why Honda Should Not Engage in a Price War

Tuesday, April 6th, 2010

For a prospective customer seeking a reliable Japanese car, it is very likely for Honda and Toyota to be on the top of the list. Both auto manufacturers are known worldwide to produce vehicles for their safety and reliability, which has gained them loyal followers.
However, the recent controversy of Toyota’s recalls for unintended acceleration in [...]

Read More

Coffee Price Wars: Competitive Advantage of Starbucks, McDonalds and Dunkin’ Donuts Face an Intriguing Shift

Tuesday, March 9th, 2010

Ongoing economic trends across every imaginable industry are making a noticeable lean towards price wars and cutting prices.  We often try to gauge whether or not one brand’s decision to engage in a price war will in turn lead its industry competitors to tumble down a slippery slope that is nearly impossible to recover from.
There [...]

Read More

Competitive Advantage and Price Wars: How Well Might Metro PCS Compete Against AT&T if Prices Were Equal?

Monday, March 1st, 2010

“We must be seen as the best deal in town.”  Such powerful words, and the first step to an accelerated tumble straight to the bottom of the profit margin.  These are the words of  MetroPCS Chief Operating Officer, Thomas Keys, whose company competes strongly with price.
As we’ve emphasized time and again, engaging in a price war [...]

Read More

No Competitive Advantage in Price War Brewing with Apple iPad and Hewlett-Packard Tablet

Tuesday, February 23rd, 2010

As highly-competitive manufacturers and retailers become lost in a sea of sameness in the eyes of consumers, it is up to the brand to catch the focus of consumers’ eyes and differentiate from competitors.
Following the introduction of the Apple iPad, Hewlett-Packard began discussing setting prices on its anticipated PC version of a tablet to directly compete in price [...]

Read More

E*Trade Cuts Broker Prices, Loses Competitive Advantage & Engages in All-Out Price War

Tuesday, February 16th, 2010

Price wars abound in online brokering as E*Trade Financial Corporation jumped into a broker commission price war last Monday. 
Eliminating account activity fees and the $12.99 commission tier, E*Trade chose to help current and potential customers view E*Trade services as a more simple, valuable and transparent business through which to perform stock trading actions.
No longer is the focus [...]

Read More

Apple’s iPad Strikes up Price War Amongst E-Book Retailers; Publishers Protect Competitive Advantage

Wednesday, February 3rd, 2010

In effort to prevent price wars and maintain a competitive position, Macmillan publishing requested that Amazon.com stop selling digital and print versions of books from Macmillan publishing.
This action closely followed Apple’s introduction of the iPad and an announcement of the iBookstore –a marketplace through which iBook applications such as e-books for the new iPad may be purchased and downloaded.
After [...]

Read More