What should I do if my competitor starts a price war?

Many companies get into an unstoppable and fierce battle of price. Regardless of who wins, both the combatants end up in a debilitating situation. Sometimes it is impossible to avoid a price war; if you do get into one, use the following strategies:

1. First, understand why you are in a price war and whether it affects you or not.
2. There is no fixed rule to drop your prices when your competitors lower their prices. Instead, you can add more value to your product to get an edge over them.
3. Efficiently market your goods and services.
4. Build your brand image so that customer retention and loyalty stay with your products or services.