Column originally published in MDZ Online by Natalia Vivas.
In contexts of trade openness and high competition, the temptation to cut margins and lower prices often presents itself as a quick fix. However, this strategy erodes perceived value, destroys differentiation, and compromises long-term business sustainability.
- The danger of price wars: Competing solely on cost leaves brands trapped in a downward spiral where customers lose sight of real value.
- Strategy vs. Impulse: The key to leadership is not cutting prices, but safeguarding brand identity, boosting value-added offerings, and communicating with surgical precision.