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Wednesday, 11 January 2012

Evidence of Price War

Following 16th October's post giving you an oligopoly case study, forecasters have predicted that over the Christmas period Tesco lost market share while Asda, Sainsbury's and Morrisons grew market share. This just shows how price wars can adversely affect companies within a market. The 'Big Price Drop' campaign was matched by Asda's '10% cheaper' and others from the competitors. However a counter-argument is that the price led to increased market share for all the major firms regardless that Tesco has lost.

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