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Pressure to compete on price

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Abhijeet S
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Pressure to compete on price - October 11th, 2010

There are enormous pressures on all firms to compete on price. Price competition is at center stage, driven by powers of strong retailers, value sensitive customers, reduced capacity growth and overcapacity. Retailers have become stronger and use their powers to put pressures on prices.

Whereas a year ago information was largely controlled by the manufacturer retailers are now collecting vast amounts of information and developing models to use it. As a result there is an increasing focus on margins and efficient use of space.


Orange versus BPL mobile services
What these cellular service providers are doing is to compete with each other mainly on the basis of price. If Orange is cutting its deposit amount, or reducing the general rent or tariff or airtime charges, BPL has to follow the suit.
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