ABSTRACT
Price competition is a “game,” as defined by game theorists, because the ultimate outcome resulting from any move that you make depends upon how your competitors react to it. Fortunately, there are competitive strategies that can increase, or at least maintain, the value of markets despite price competition. Companies can grow profitably when they create competitive advantages and target customers and transactions that leverage those advantages. Finding ways to make sales more profitably drives sustainable market share growth, not the other way around as is commonly believed. This chapter describes how to make thoughtful pricing choices to drive growth in light of potential competitive responses.
