Business Competition As Level 5 Conflict
In conflict, competitors fight toe to toe and slug it out for any and all customers with a combination of offensive strategies and defensive strategies.
The aim has moved to making short terms profits to hurting the competition and potentially either permanent weakening them or even driving them out of business.
Price is often the common weapon but mass marketing campaigns, product bonuses and higher levels of service can all be used to slug it out.
But just like collusion, conflict can be illegal.
While customers benefit from lower prices, predatory pricing is deemed anti-competitive. While legal definitions of just what predatory pricing vary – and can be difficult to prove – think of it as selling at a price below the variable cost of production.