Flanking in a Price War Free Essay

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Flanking in a Price War

I - Descriptive Section 1. Article Main Points Summary “Flanking in a price war” is an article that describes a pricing experiment conducted by the authors in the Quebec grocery retailing industry. This experiment was initiated by IGA, one the four main grocery chains in Quebec. The article introduces us to the four leading grocery retailers and provides us with some historical background on the industry. It primarily focuses on Steinberg Inc. who was the market leader until 1980 and had created heavy entry barriers to the industry through a strategy of price slashing. As a result, the market was reduced to four major players with Steinberg’s share declining into third place. Concerned that Steinberg may initiate a price war

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