How To Fight A Price War

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| By Diegojoachin

Diegojoachin

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Quizzes Created: 1 | Total Attempts: 101

Questions: 10 | Attempts: 101 | Updated: Jan 4, 2023

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Indique las respuestas correctas de acuerdo al documento escrito por Akshay R. Rao, Mark E. Bergen, Scott Davis en HBR de Abril de 2000.

Questions and Answers

1.

AT&T, Xerox y Compaq son ilustraciones que la lectura usa para argumentar que las guerras de precios se han convertido comunes porque los gerentes ven un cambio de precio como una acción fácil, rápida y reversible.
- A.
  
  Verdadero, La primera en telefonía y las otras dos en el sector de tecnología: todas ilustran el tema de cambiar precios como una forma facil de hacer "estrategia".
- B.
  
  Falso, es AT&T, E-Trade y otros mas. Pero es verdad lo de cambiar los precios de parte de los gerentes.
Correct Answer
B. Falso, es AT&T, E-Trade y otros mas. Pero es verdad lo de cambiar los precios de parte de los gerentes.

Explanation
The given answer explains that the statement is false because it mentions that the companies AT&T, Xerox, and Compaq are used as examples in the reading to argue that price wars have become common because managers see a change in price as an easy, quick, and reversible action. However, the answer states that it is actually AT&T, E-Trade, and others that are mentioned in the reading, but it is true that managers change prices.

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2.

¿por qué empiezan las guerras de precios?
- A.
  
  Porque alguien piensa que los precios estan muy altos.
- B.
  
  Porque alguien está dispuesto a ganar marketshare a costas de reducir margenes.
- C.
  
  Ninguna de las anteriores se mencionan.
- D.
  
  Precios altos y margenes (otras dos opciones)
Correct Answer
D. Precios altos y margenes (otras dos opciones)

Explanation
The correct answer is "precios altos y márgenes (otras dos opciones)". This answer suggests that wars of prices start because of high prices and margins. It implies that when prices are perceived as high and margins are large, someone might try to gain market share by reducing their own margins and engaging in a price war with competitors. This explanation aligns with the concept of price competition and the strategic decision to lower prices to attract customers and increase market share.

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3.

¿Que es lo primero que hay que hacer en una guerra de precios?
- A.
  
  Bajar el precio porque esa es la estrategia dominante
- B.
  
  Lo primero es diagnosticar para conocer las causas y caracteristicas, para pelearla, evitarla o talvez iniciarla.
- C.
  
  Esperar la reacción de la industria para no revelar la "1st mover advantage" del oponente.
- D.
  
  Ninguna de las anteriores.
Correct Answer
B. Lo primero es diagnosticar para conocer las causas y caracteristicas, para pelearla, evitarla o talvez iniciarla.

Explanation
The correct answer is to diagnose the causes and characteristics of the price war in order to strategize and decide whether to fight it, avoid it, or potentially initiate it. This is because understanding the underlying reasons and dynamics of the price war is crucial in determining the best course of action. It allows for informed decision-making and the development of an effective strategy to navigate the situation.

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4.

La lectura ofrece un esquema para tener un buen diagnostico. Este esquema es:
- A.
  
  Customer issues, comany issues, competitor issues, contributor issues
- B.
  
  Interpret intentions, evaluate quality, co-opt contributors, attempt to introduce new products
- C.
  
  None of the above
Correct Answer
A. Customer issues, comany issues, competitor issues, contributor issues

Explanation
The correct answer is customer issues, company issues, competitor issues, contributor issues. This is because the reading provides a framework for conducting a good diagnosis, and this framework includes considering the issues related to customers, the company itself, competitors, and contributors. The options of interpreting intentions, evaluating quality, co-opting contributors, and attempting to introduce new products are not mentioned in the given reading and are therefore not part of the provided framework.

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5.

Para responder una guerra de precios manteniendo intacto el precio, el ejemplo del Ritz en Malaysia ilustra como alertar a los clientes de perdida de calidad de productos de la compentencia enfatizando las consecuencias negativas.
- A.
  
  Verdadero
- B.
  
  Falso
Correct Answer
A. Verdadero

Explanation
The explanation for the given correct answer is that the example of the Ritz in Malaysia demonstrates how to respond to a price war while keeping the price intact. It suggests alerting customers to the loss of quality in the competitor's products and emphasizing the negative consequences. This strategy allows the Ritz to maintain its price while still attracting customers by highlighting the superior quality of their own products.

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6.

La lectura mencionaba el caso de NutraSweet.
- A.
  
  Falso, eso se vió en clase.
- B.
  
  Verdadero
Correct Answer
B. Verdadero

Explanation
The given correct answer is "Verdadero" (True). This suggests that the reading did mention the case of NutraSweet. The statement "Falso, eso se vió en clase" (False, that was seen in class) implies that the information about NutraSweet was covered in class, confirming the truthfulness of the answer.

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7.

Change customers' choices. Modify only certain prices. Fighting brand. Cut prices in certain channels.
- A.
  
  Son formas selectivas de mover el precio para el segmento unicamente amenazado.
- B.
  
  Son formas de responder una guerra de precios.
Correct Answer
A. Son formas selectivas de mover el precio para el segmento unicamente amenazado.

Explanation
These options suggest that the strategies mentioned are selective ways to adjust prices specifically for the segment that is under threat. This indicates that the company is targeting a particular group of customers and making changes to their pricing in order to maintain their market share and competitiveness. These strategies are likely being implemented as a response to a price war in the industry.

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8.

Segun la lectura ¿cuando podría ser inteligente pelear la guerra de precios?
- A.
  
  Cuando pueda identificar un segmento grande y en crecimiento de clientes sensibles al precio
- B.
  
  Cuando tenga ventaja de costos
- C.
  
  Cuando tengo mas recursos financieros que la competencia
- D.
  
  Cuando pueda tener economias de escala expandiendo el mercado
- E.
  
  Cuando un rival pueda ser neutralizado o eliminado por las barreras de entrada o re-entrada
- F.
  
  Todas las anteriores
Correct Answer
F. Todas las anteriores

Explanation
The correct answer is "todas las anteriores" because all of the mentioned conditions are factors that could make it intelligent to engage in a price war. Identifying a large and growing segment of price-sensitive customers, having a cost advantage, having more financial resources than competitors, being able to achieve economies of scale by expanding the market, and neutralizing or eliminating a rival through barriers to entry or re-entry are all strategic advantages that could make a price war a smart decision.

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9.

Existen soluciones diplomaticas, pero usualmente son imposibles de realizar por amenazas de colusión en precios y efectos regulatorios.
- A.
  
  Verdadero
- B.
  
  Falso
Correct Answer
A. Verdadero

Explanation
La afirmación de que existen soluciones diplomáticas pero que generalmente son imposibles de realizar debido a amenazas de colusión en precios y efectos regulatorios es verdadera. Esto sugiere que, aunque en teoría podría haber soluciones diplomáticas para resolver conflictos, en la práctica estas soluciones pueden ser difíciles de implementar debido a la presencia de acuerdos secretos entre empresas o a la interferencia de regulaciones que dificultan la resolución pacífica de los problemas.

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10.

Si estamos en una guerra de precios hay que entender que podemos usar varias opciones que no implican mover el precio para defendernos y reconocer que algunas veces es mejor ceder y buscar otros modelos de negocio (como 3M que el 40% del ingreso a cinco años viene de productos nuevos).
- A.
  
  Verdadero
- B.
  
  Falso
Correct Answer
A. Verdadero

Explanation
In the given statement, it is mentioned that if we are in a price war, we should understand that there are various options available to defend ourselves without necessarily changing the price. It also suggests that sometimes it is better to compromise and explore other business models. The example of 3M is given to support this statement, stating that 40% of their income comes from new products. Therefore, the correct answer is true, as the statement emphasizes the importance of considering alternative strategies and being open to innovation in a price war situation.

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Current Version
Jan 04, 2023

Quiz Edited by
ProProfs Editorial Team
Oct 23, 2012

Quiz Created by
Diegojoachin

How To Fight A Price War

AT&T, Xerox y Compaq son ilustraciones que la lectura usa para argumentar que las guerras de precios se han convertido comunes porque los gerentes ven un cambio de precio como una acción fácil, rápida y reversible.

¿por qué empiezan las guerras de precios?

¿Que es lo primero que hay que hacer en una guerra de precios?

La lectura ofrece un esquema para tener un buen diagnostico. Este esquema es:

Para responder una guerra de precios manteniendo intacto el precio, el ejemplo del Ritz en Malaysia ilustra como alertar a los clientes de perdida de calidad de productos de la compentencia enfatizando las consecuencias negativas.

La lectura mencionaba el caso de NutraSweet.

Change customers' choices. Modify only certain prices. Fighting brand. Cut prices in certain channels.

Segun la lectura ¿cuando podría ser inteligente pelear la guerra de precios?

Existen soluciones diplomaticas, pero usualmente son imposibles de realizar por amenazas de colusión en precios y efectos regulatorios.

Si estamos en una guerra de precios hay que entender que podemos usar varias opciones que no implican mover el precio para defendernos y reconocer que algunas veces es mejor ceder y buscar otros modelos de negocio (como 3M que el 40% del ingreso a cinco años viene de productos nuevos).