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Startseite › Insights › Collapsing Demand: Can a Price War Be Avoided?

Collapsing Demand: Can a Price War Be Avoided?

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No other industry has been on such a rollercoaster ride. In 2008, potash prices sky-rocketed – and continued their upward surge even when demand started sagging -, in 2009 they took a deep fall as demand collapsed. Admittedly, this is an extreme example. But it is just one of many instances where the global crisis caused a drop in demand. Price wars loom everywhere, and they threaten to affect the long-term profitability of entire industries, in particular those with oligopoly structures. What are the factors driving market dynamics in such situations – and how can the downward spiral be avoided?

Spotlight on the Potash Industry

pdf-logo72Quarterly Insights on Strategy and Market Dynamics
Ausgabe April 2010
von Hagen Lindstädt, Petra Dietl

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