Woods and Co is one of the largest office furniture suppliers in the UK. They outsource manufacturing overseas, sell direct and keep their prices low. New firms who don't have Woods' economies of scale find it impossible to compete. What kind of pricing are Woods and Co using?

Question

Quizplus · Accepted Answer

Pre-emptive pricing is used by Woods and Co by setting prices low enough to deter new entrants into the market, leveraging their economies of scale to maintain competitive advantage.

Woods and Co Is One of the Largest Office Furniture