Price War

This article actually describe about Price War, that is a intensive competition, especially among retailers, in which prices are repeatedly cut in order to undersell competitors or sometimes to force smaller competitors out of business. It may be used to increase revenue in the short term or as a longer term strategy to gain market share. It have been started because simple promotional activities have been misunderstood as major strategic changes. Price wars can be prevented through strategic price management, thorough understanding of the competition, or even communication with competitors.