I summarize my insights into price war s very simply: there are smart industries and there are self-destructive industries. What is the difference? The smart ones avoid price wars, and the self-destructive ones get stuck in them. The smart ones are profitable; the self-destructive ones incur losses or destroy profits. The problem is that it only takes one self-destructive competitor to render an entire industry self-destructive. That’s why it is better to have smart competitors.
