Research Insight 7.3

Throughout the textbook reference is made to seminal academic papers (as part of the Research Insights features) that can assist you in the further development of your understanding of a particular concept or theory that has been introduced. Organized by chapter, this resource provides links to these seminal papers.

Please note that your institution will require a subscription to the relevant journal for you to access the full text of the articles. If you are unsure how to do this, please contact your university librarian. Often professional bodies, such as the Chartered Institute of Marketing, also offer access to journals via their library services. Alternatively, you can purchase the articles directly from the source website.

Source: Reinemoeller, P. (2014). ‘How to win a price war’, Sloan Management Review, 55(3), 15–17.

Abstract: The abstract for this paper can be found at the following link:
http://sloanreview.mit.edu/article/how-to-win-a-price-war/

Insight: This article, based on a study of Albert Hejn in The Netherlands, explains that companies can win price wars by leveraging five strategic capabilities, including 1) the ability to affirm the need for a price war, 2) the ability to carefully select an appropriate battlefield using advanced analytics capabilities, 3) the ability to pick a single target competitor 4) staying under the radar (by targeting former customers rather than explicitly poaching new customers) and 5) the ability to align revenues with reformed cost structures.

URL: http://sloanreview.mit.edu/article/how-to-win-a-price-war/