Wolfgang chose his words carefully before he answered, “Someone or something is driving commodity prices down to the breaking point. At this rate, world order will be irrevocably changed in six months.
“Otto, you and I have discussed this already. However, we needed to bring Quip up to speed and add any new information to what we currently know.”
Otto asked, “Do we know who yet? Any new development since we spoke last?”
Wolfgang cautiously continued, “We only know what is happening, not who is driving it.
“What we are seeing, Quip, is a very old, yet very simplistic, business model called predatory pricing. A company or a group of like-minded companies band together and offer goods at a lower price that market leaders can’t match. The incumbent begins to lose market share if they hold their price, or they match the predatory pricing, thus causing them to bleed red ink on their income statements. The initial market leader either exits that market or they implode against the onslaught.
Click Follow to receive emails when this author adds content on Bublish
Comment on this Bubble
Your comment and a link to this bubble will also appear in your Facebook feed.