By Don Moyer
People go to war for many reasons. Protecting freedom, family, country is generally considered a noble one. Undercutting
a competitor is not. The top line is a potent weapon – but one that must be wielded with finesse, not machismo. As a strategy, price cutting can be difficult to sustain; against more efficient competitors, it’s impossible. In his first-rate book
Competitive Solutions: The Strategist’s Toolkit, R. Preston McAfee points out that price wars between equals produce injuries on both sides and victory on neither. So launch hostilities only when you’re sure you have an overwhelming advantage and can drive the other guy from the market.