price war
Competing through cuts
A price war is aggressive competition in which businesses repeatedly undercut each other's prices, often sacrificing profit margins to capture market share or drive out rivals.
The term implies escalation—each reduction prompts another: The price war between airlines made summer travel surprisingly affordable.
Price wars benefit consumers temporarily but can destabilize entire industries.
- undercuttingCharging less than rivals
- discountingReducing prices offered
- race to the bottomCompetition through degraded standards
- loss leaderDeliberately unprofitable merchandise
- marketshareCompany's industry sales percentage
consumers · competition · oligopoly · bloodbath · sales · cutthroat · razor-thin · profit margins · retailing · markdowns · deep discounts · revenue · cheap · strategy · slashing · economics · squeeze · bottom line
- market shiftsboom, bust, collapse, contraction, correction
- business termsfranchising, revenue stream, board meeting, gross margin, markdown
- pricingoverpricing, discounts, overcharge, markdowns, unit cost
- business risksmarket risk, competition, data breach, cyberattack, recession
- competitive responsediscount, rebate, coupon, undercutting, matching
- economic problemsmarket failure, recession, inflation, deflation, stagflation
price warprice fixing
Illegal coordinated rate-setting
gentlemen's agreement · premium pricing · cartel · price floor
price wartruce
Agreed halt to hostilities
détente · ceasefire · peaceful coexistence · cooperation · armistice
war, price, prices, priced, pricing, overpriced, pricy, unpriced, underpriced