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research / germany
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This
means in particular, that firms very often execute the market-making function
insufficiently. They follow a certain kind of “bulk logic”, which very often goes along
with aggressive price tactics in competition. Whenever the situation gets closer to
predatory pricing, there are more losers than winners in competition. Accordingly pricing
must be understood as a very sensitive instrument of marketing and suppliers should
strictly avoid a too aggressive way of pricing. Moreover German firms underestimated
the fact that even in commodity markets there are some attractive market niches. By
following a bulk logic they are not at all in a situation to address these market niches with
respective offerings.
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