Thuyết trình ESP2

1. IV. Price war
Phung Ba Tien
ID: 1101017368

2. Structure
1
• Definition
2
• Consequence
3
• How to win the price war
4
• Summary

3. Definition
Consequence
How to win price war
Summary
What is the price war ?
• Be known as cost leadership
• Struggling for market share
• Cutting down the prices of their
goods/services

4. Definition
Consequence
How to win price war
Summary
What are price war good for?
Absolutely nothing.
Of course, no firm should ever
initiate them

5. Definition
Consequence
How to win price war
Summary
Economically devastating and
psychologically debilitating
Toll on profitability

6. Definition
Consequence
How to win price war
Summary
Understanding customers' price sensitivities

7. Price policy
Definition
Consequence
How to win price war
Summary
A B
3
When should we
use price policy
to win the Price
war ?
a Identifying a large and
growing segment of price-
sensitive customers
b Having a strong brand
c Be relatively strong in
finance compare to
competitors.
d Achieving economies of scale
by expanding the market
e Consumers are the upper-
class
f Having a cost advantage

8. Price policy
Definition
Consequence
How to win price war
Summary

9. Non-price policy
Definition
Consequence
How to win price war
Summary
The best way to escape a damaging price
war is not to jump into the fray at all” (Rao,
Bergen, and Davis, 2000).

10. Non-price policy
Definition
Consequence
How to win price war
Summary
Re-target Your Market
Focus on quality and service

11. Non-price policy
Definition
Consequence
How to win price war
Summary
Alert customers to the risks
For example
FedEx’ s slogan : "When it absolutely,
positively must be there on time"

12. Non-price policy
Definition
Consequence
How to win price war
Summary
Link a price cut to something else

13. Definition
Consequence
How to win price war
Summary
if you don’t want to be at the bottom of
the market fighting over prices with your
competitions, then be prepared to raise
the bar above the usual or general playing
level.

14. Ecercise
Cutting down
the price
Economically
devastating and
psychologically
debilitating
Toll on
profitability

15. Ecercise
Response to
price war
Price policy
Segment of
price-
sensitive
4. ……….
5…………
Achieving of
economies
scale
Non-price
policy
6,,,,,,,,,,,,
Re-target
Your
Market
Focus on
quality and
service
Link a price cut
to something
else
Having a cost
advantage
Be strong in
finance
Alert
customers
to the risk

16. • Thank for your attention !