Pricing and competition. Business & Marketing Assignment.

Pricing and Competition
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Pricing and Competition
Competition in the corporate world is quite stiff. Business entities need to adopt workable strategies that would ensure they favorably compete and survive in the market. One such way of navigating through shrinking markets and high levels of completion is to deploy a pricing strategy. This strategy involves setting up attractive pricing of goods and services; the firm that adopts relatively low prices can stamp its authority in the market but using pricing a yardstick to penetrate the market. A low cost-price leader should develop approaches to its advantage. The critical way of forcing the rival competitors out of the market through a low price approach entails the utilization of predatory pricing.
Predatory pricing is whereby a market leader or a dominant firm deliberately undercuts its price of goods or services to a level the rival cannot compete and are left with no other option, apart from leaving the market. Predatory pricing revolves around charging extremely low prices in a bid to get rid of competitors and intending to charge higher prices after other firms have left the market (Leslie, 2013). The predator fi...