A company can win a price war and capture market share from competitors if:
A)the competitor doesn't notice.
B)the market actually shrinks,so that if the firm simply maintains its volume its market share will increase.
C)the company has a strong cost advantage and can lower prices without sustaining a loss.
D)the company doesn't actually lower its prices but only appears to.
E)None of the above.A company cannot win a price war.

Question

Quizplus · Accepted Answer

A company can only win a price war and capture market share from competitors if they have a strong cost advantage and can lower prices without sustaining a loss. If the company has a weaker cost advantage, lowering prices could hurt their profitability and damage their brand. Additionally, if the market is not growing, maintaining volume while competitors lose market share will lead to an increase in relative market share for the company, but not necessarily more sales or profits. The other choices are unlikely to lead to successfully winning a price war.

A Company Can Win a Price War and Capture Market