Pricing
Successful price warriors stay ahead of bigger rivals by using several tactics:
They focus on just one or a few consumer segments;they deliver the basic product or provide one benefit better than rivals do;and they back everyday low prices with superefficient operations to keep costs down,Interestingly, low-cost companies stay ahead of market leadersbecause consumer behavior works in their favor..
My research suggests that if a business gets a customer to buy its products or services on the basis of price
it will lose the customer only if a rival offers a lower price.Since the discounters win all their customers because of the prices they offer, they don’t have to worry about traditional rivals that always charge premiums,
Read More
https://hbr.org/2006/12/strategies-to-fight-low-cost-rivals.
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