Intense competition such as price wars are an accepted practices in the united s

Question

Intense competition such as price wars are an accepted practices in the united states, but cooperation between companies has legal ramifications because of antitrust laws. should price wars that drive small businesses or new entrants out of business be illegal? what ethical considerations are raised?

Wal-Mart driving small businesses out of business and the use of state/county/township tax incentives to entice Wal-Mart to enter a geographic market - include 4 researched sources. Federal income tax is not a state/county/township tax

Explanation / Answer

Prices are the main factors if it is considered for products selling in the company. The company follows certain measures which are strategical for them. They follow different market research to know other companies price structures and they implement into their own products in such a way that it reduces the price range by 1/3rd of the market value for the products. The price wars start from this point of time and this causes many law and order issues in between the companies. The small companies or the startups basically face the major problems in this regard because they have just started their business and don’t have that opportunity to lower the price and give maximum offers to grab the customers. They raise the voice in this situation or take the help of law and order to make the price fix at a certain range so that they can also do their business in the market by earning the profit. They are really eager to grab the customers from the market so to expand their business wider and balanced. But the price wars stop them to make everything normal.

The ethical considerations are required to be implemented by the state of law which should focus on the rules and regulations by designing the price of the products that are very mandatory to be made fixed and it should be followed by the all the organization to set up prices for their product. It will lead to good earnings across all the companies, especially the startups like Wal-Mart will get the scope to earn properly in the market. It is the reason that in the United States all legal practices of proper ranging are need to be mandated and before launching of the products to the customers it should be checked with all its range by some departments of the local government so that proper price should be put on all the products and to avoid any further price wars among the organizations.            

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.