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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In order to enrich the product portfolio, the Group has intensified product development by enriching product categories and creating cost-effective products to combat the low-price strategies employed by rivals.
Suppliers and marketers in the household and personal products industry have bemoaned Wal-Mart's low-price strategies for years.
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