I guess this is the most befitting term for the competition that is witnessed by various players in the market today. Major industries are telecom, communication and retail.
To attract customers and to prevent churn rate the companies are on a price war.
To justify lets take example of telecom industry. More and more players are coming into the ever-growing market with varied schemes to attract more and more customers. Schemes like STD @ 50.ps, pay per call, pay 1 ps. and talk unlimited are deluging in the market.
Then there are schemes going in retail segment also. Like the past decade witnessed the tough competition between cola companies. Various FMCG companies, apparel industry are also witnessing this cut-throat competition.
No doubt the customer is at an advantage as he gets the bargaining power and a wider basket of goods to choose from. But, till what point of time?
At some point the balance has to come and market will see the saturation.
One more question comes to my mind is that are customers paying some indirect cost may be in form of hazard to environment, inter-generational equity or any other hidden cost which will show its face in future.
How about companies, there profitability, effects on shareholders, employees and various other stake holders? Are they not into loss?
All these questions need to be answered. No doubt, competition is healthy, but excess of it is not ripe for the market. There should be proper regulatory framework to address unnecessary competition in the market and make it a fair play.
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