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Is it a smart move to fight for the market share by lowering your price as much as possible?
Price is not the only variable that may affect your market share of your product or service.
The buyers consider the whole package including price, quality, reputation, service, etc.
It may not work well for you to lower the price of product or service for the sake of establishing a market share.
If the low price could not gain a sizable increase in the market share as you expect, you will suffer way more loss than what you gain.
Mr. ABC attempted to gain the market share by low price first, and the profit could be gained at a later transaction by differentiation.
Considering his context, Mr.Hua thought his idea sounded more like
Inflicting damage on the enemy while his own side suffered a bigger but comparable level of damage.
What could be worse was that Mr.ABC built up a mindset that low price was the key to winning. Which would be detrimental to his business development.
Price war may works under certain circumstances. But you must take your context into consideration before you use it to attract customers and ward off competitors.
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