Price Competition

Posted in Marketing and Strategy Terms, Total Reads: 558

Definition: Price Competition

Price Competition is a business strategy where a firm tries to differentiate its product or its service from that of a competitor on the sole basis of a lower price.

Such strategy is usually followed in the case of identical or similar products or services. Price Competition is a risky strategy as it leads to lowering of profitability of a firm and can bring about financial losses in the long run. Moreover, it can, similarly, affect the overall product category if all the competitor’s follow the same strategy and lower down the prices of their products.


Mobile operator brands like Vodafone, Airtel, Idea etc have a price competition on deciding which brand offers the best services at the most affordable services.


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