Price War versus Value War: Strategic Shifts for Sustainable Competitive Advantage
DOI:
https://doi.org/10.47747/snfmi.v3i1.3099Abstract
In highly competitive markets, companies adopt various strategies to sustain and expand their market position. Price war, characterized by aggressive price reductions, often provides short-term sales growth but undermines long-term profitability and brand equity. In contrast, value war emphasizes differentiation, innovation, and customer experience to create sustainable competitive advantage. This conceptual paper synthesizes recent literature (2015–2024) to examine the strategic implications of both approaches. Findings indicate that while price wars can temporarily increase market share, they typically erode margins and commoditize offerings. Value wars, however, foster customer loyalty, enhance customer lifetime value, and support premium pricing. This study recommends that firms transition toward value-based strategies to strengthen long-term competitiveness.
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