In times of crisis the existing market is reduced and the price war is often the choice of many. But, be aware, we are on the verge of the biggest economic challenge in a long time.
The market will narrow. But the solution is not to lower prices but to bring value. Although it may seem like a textbook business strategy, competing on price is only tactical, and in the end benefits the larger companies. In fact, they can devour you if you are an SME.
But…, think that if the big corporations have big budgets to lower prices and make big campaigns, they will also have difficulties to redirect processes, to adapt to new needs or to attack reduced targets, concrete or determined niches.
The recommendation, as it was in the previous crisis, is: ‘Don’t lower prices, go digital. Don’t be tactical, be strategic’.