What Strategy To Follow In The Face Of A Price War?

When we are faced with a conflict of this type, we have two options: to leave the rag and leave our prices as they were or join the price war. Each option has its pros and cons, so we will have to evaluate different aspects to decide how to deal with that price war. The first of all will be to determine if it is a specific, promotional strategy – we will let it pass or a continuous movement, where we will have to look for an answer.

In the event of a continuous movement, we must analyze the differences in response strategies. One of them is to prepare a counterattack, for which we will analyze our cost structure against that of the company that has launched that price war. If you have an advantageous position, take advantage, and redefine your business strategy. To damage the other company, you can reduce prices to increase your containers’ capacity, offer 2×1 or similar offers, etc. Of course, when we attack, we run the risk of rushing.

If you don’t want to go on the attack, you can take a defensive position and analyze the situation cold. On the one hand, we must investigate why they have declared this price war on us, and on the other hand, we must assert our product above any conflict, keeping us out of this price war. If the brand is established, it is easier to ignore this first stake. You have a portfolio of loyal buyers who will continue to trust a brand or product regardless of price.