Tom Ward's Blog

In todays ever growing society, price wars within industries are becoming all too common. A Price war is a term used within industries to indicate a state of intensely competitive rivalry accompanied by a multi-lateral series of price reduction. With inflation rates on the rise price wars provide companies with great challenges. I have only been in Canada for 3 and a half weeks so it is rather difficult for me to use examples of Canadian companies when describing the effects of price wars. Thus instead i will use two of the most dominant supermarket chains in Australia. Coles and Woolworths. These two companies dominate the market in Australia and have been tied up in a price war for some time. The ultimate winner as a result is us as consumers. I’m sure not one consumer is complaining about this war. We get what we want at a lower price and the supermarkets work harder to continue acheiving profits. Through efficient marketing and planning these supermarkets are able to overcome these price wars and continue to reel in revenue. So in the end both consumer and supermarket are winners. A good thing for the economy? I think so.