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Sase Sham, Inc.
216 WoodHampton Dr
White Plains, NY 10603-1920

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Competition and Price Wars

Competition is good for both a business and its customers, especially for the customer.  Competition drives a business to innovate and work harder to get and keep customers.  Competition allows customers to get the best price and product for their money.  So for the customer it can be great, but not always for the business that cannot compete.   A business that does not innovate and continue to compete will soon go out of business and well this is not good for them or the customers (it removes a choice). Then there is the price war.  This is where companies drop prices as a method of competing; this is designed to draw customers away from the competitor.  Sometimes a company makes a drastic drop in price to try to corner the market or just get back in the game.  This only works if both companies are on similar ground with similar products.   If the product was not competing well before because it just didn’t fill the customer’s needs, then no amou ...

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