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"Flanking in a Price War" discusses some of the strategies utilized by retail grocery chains, wholesalers, and co-operatives within the Quebec Grocery Industry. Pricing strategies are the main focus of this article. It outlines both successful and non-successful pricing tactics. In addition, it emphasizes the importance of considering all pricing options, through price experiments, before deciding upon a pricing strategy.
It tells of the decline of an industry leader, Steinberg Inc. Steinberg Inc. dominated the Quebec grocery retail industry from 1950 to 1980 while using a discount pricing strategy. Use of that pricing strategy enabled Steinberg to gain more of the market share, forcing some of the smaller independent grocers to close. It also weakened the market position of some of its tougher competition, especially six small fully integrated chains.
Steinberg Inc.'s success quickly gained the attention of some of its toughest competitors. Two retail co-operatives......
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Title: Competitive Analysis
Approximate Word Count: 1215
Approximate Pages: 5 (250 words per double-spaced page)
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