Price is a reflection of the values defined by consumers. In a competition for the consumer, companies use tactics to defeat competitors. One of the tactics used is the price. By creating a cheaper price seems often to be the goal, but this would lead to decreasing profits the industry concerned.
Price war could create a situation of economic ruin and weaken the psychological costs that must be paid by individuals, companies and industry turunya advantage. No matter who is winning, all petarung look desperately for menghakhirinya than before they enjoy the competition. And finally, the price of war becomes a thing of the day. This is clearly visible in the telecommunications industry in Indonesia that is the price war situation. The reduction in prices, per-second billing, and free calls is the main provider of weapons to enter the telecommunications arena of competition. Little do they reveal about the service, quality, brand equity, and non-price factors that may increase the value of a product and services. Clearly seen that each competition is always based on price, and every reaction is always based on price-cutting.
Generally, price wars occur because there is suspicion that a certain price in the market is too high or the desire to gain market share in the cost of the margin. Price war became general manager as likely to see that the price of things that are easy, fast, and effective. By understanding the causes and characteristics, manejer can make decisions about when and how the price war, when to avoid, and when to begin
1. Show your strategic intention and capabilities
2.Compete in quality
3. Take advantage of the possibilities of cooperation
4. Use a complex price
5. Introduce new products
6. Use of interest rates
Using this information, menejemen need the flexibility to determine the price range and determine how to position relative to the cost price and allows as how the price of basic products.
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