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Low-Price Strategy

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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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Despite its low-price strategy, TransAsia Airways will further cut the price for tickets valid for 14 days by 18%, to NT$11,500, and tickets valid for one month by 14.
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.
Byline: By ANDREW MacLEOD Jaguar has stunned its competitors with its low-price strategy for the new XJ6 range, it was revealed today.
 
 
 
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