Flanking In a Price War Free Essay

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Flanking In a Price War

The study presented in the article was simple in theory; test and prove that stock-up goods have a different kind of price sensitivity than non-stock up goods. The retail grocery industry has some unique characteristics. Companies are hesitant to take on price wars due to the risks involved. Steinberg was the major player in the Quebec grocery retail market between 1950 and 1980. There were twelve major competitors and many smaller independent stores in the mid-1960s. Steinberg’s strategy was to gain market share through aggressive pricing. In response its competitors developed responses to protect their well being. Through mergers, franchising, and acquisitions the landscape of the Quebec retail grocery market was dramatically chang

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