cut-throat competition

(redirected from Ruinous Competition)
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Cut-Throat Competition

Competition between two or more companies so fierce that they are unable to recoup the costs of making their products. This may happen especially if there are frequent or seasonal drops in demand. Over the long term, cut-throat competition is unsustainable for all companies involved. It is also called ruinous or destructive competition.

cut-throat competition

see PRICE WAR.
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It," not "the trust," began "as the result of an effort to obviate ruinous competition.
But the state still ensures a built-in margin for banks to prevent ruinous competition in a sector only recently nursed back to rude health through a $500 billion multi-year bailout.
The Law Lords had been told by Jonathan Sumption QC, for Mr Norris, there were once several thousand cartels operating in the UK, many of them originally sponsored by the Government to protect companies from bankruptcy, prevent ruinous competition, save jobs and allow British firms to compete in the export markets.
In the 1990s, Brazilian states embarked on a ruinous competition to get international car companies to build new factories, with incentives that in several cases exceeded $300,000 per job created, at a time when the average auto worker's annual salary was about $12,000.
And each resulted in a glut of capacity, ruinous competition, falling prices and, ultimately, bankruptcies and consolidation.
Rather than blaming ruinous competition and heartless customers for the "dramatic die-off" of gay and lesbian bookstores, Rotello ought to take a closer look at the books on sale.
The ruinous competition led to further concentration within the business.
Although another building boom is not expected, the axiom that excess profits breed ruinous competition warrants consideration," cautions Woodworth.
The new theory suggests that unless these coal mines (or cement factories, or salt processing facilities) are allowed to fix prices, there will be a ruinous competition among them that will ultimately harm consumers.
In the 1950s there were several thousand cartels operating in the UK, many of them originally sponsored by the Government to protect companies from bankruptcy, preventing ruinous competition, saving jobs and allowing British firms to compete in the export markets.
Grossman's concluding chapter starts with the observation that opponents of deregulation draw on ruinous competition arguments, concerns about the ability to ensure sufficient capacity in a deregulated world, the price-manipulation opportunities produced by such capacity deficiencies, and reaction to California's problems.
In line with a recent strand in economics that University of Chicago economist Lester Telser began, Bittlingmayer argues that cartels can be an efficient way of preventing ruinous competition when firms' fixed costs are very high and their variable costs are low.