Low-Price Strategy

Low-Price Strategy

In marketing, a strategy in which a newcomer to a market establishes a low price for products, especially when there is already significant competition. This can be advantageous when the seller must rely on high volume for profit; that is, even though profit margins would be low, the net income would still be high because of the large number of sales. A low-price strategy also helps create market share.
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In addition, key vendors worldwide are adopting a low-price strategy to gain market share.
Not all industry players back the low-price strategy.
This low-price strategy has also been adopted by Ajantha Mendis ($50,000, `26.
The Chinese handset vendors have now extended their reach and low-price strategy to the quad-core phone segment," said Lisa Soh, an analyst with Macquarie, according to a report by (http://http//articles.
That, according to Chen, is clear evidence that brand vendors' low-price strategy has lifted market acceptance of large-size TV models.
We believe that Magnit continues to demonstrate solid results thanks to low competition in the regions where its low-price strategy is most effective; this is because real incomes in these regions are lower than in Moscow and St Petersburg, and price is the main criteria for selecting where to shop.
Jaguar has stunned its competitors with its low-price strategy for the new XJ6 range, it was revealed today.
operations and the reinvigoration of its low-price strategy across the store and in home, executives said during a conference call.
We want to be the Casas Bahia of airlines," says Walter Folegatti, referring to Brazil's biggest home-appliance retailer, a discount chain that took off during the 1990s on a low-price strategy.
Basics follows the same low-price strategy as its predecessor, but the packaging has been improved and updated to create what Sainsbury hopes will be regarded as a more upmarket range.
and it's clear that the low-price strategy continues to gather steam.
Even with its everyday low-price strategy, customers didn't flock to Wal-Mart last week, generally the most consistent sales force in the business.
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