Fighting the Price War

As I travel around everyday, from home to school to work I see the variation in prices with the same exact products. One example is gasoline. There are two gas stations on the corners of Rosemead and Whittier Blvd. On the southeast corner one is a Chevron station and the other on the northwest corner is a Union 76 station. Ninety percent of the time gas is nine cents cheaper in the Union 76 gas station. This cheaper gas price draws many customers and me to the Union 76 gas station. I have always wondered why is gas cheaper there? Why doesn’t the Chevron station lower gas prices so they can attract more customers? In the reading and analysis of “How to Fight a Price War,” by Aksahy R. Rao, I have come to comprehend that lowering prices is not always the solution. Figuring out what the solution should be is the role of a manager or management team. Managers are also an important element to the fighting and the decision making in a price war, if it were to occur.
As...