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Cutthroat pricing is not the only problem.
"These days, they invest in solar panels, and you end up with the same overcapacity and cutthroat pricing".
Kemp Dolliver, an analyst at SG Cowen, said lab companies became less prone to cutthroat pricing after Quest acquired SmithKline Beecham Clinical Laboratories, the third giant laboratory, in 1999.
The Compaq Computer Corporation, suffering from weak demand and cutthroat pricing in the personal computer market, reported a steep drop in second-quarter earnings yesterday as sales fell 17percentt.
Mr. Greenberg, whose company is one of the world's largest insurers, said that prices for some kinds of commercial insurance were doubling, up from expected increases of 20percentto60percentcent as the industry emerged from a long period of cutthroat pricing.
The cutthroat pricing begets low profits.
Similar(49)
In the meantime, cutthroat price battles are already driving laggards out of business.
MR. ZHANG'S overseas focus might make sense, given the cutthroat price war raging in China.
E-commerce experts said they expected the cutthroat price competition to be fatal to some struggling retailers.
"These cutthroat price wars could usher in another recessionary hell," the influential economist Noriko Hama wrote in a magazine article that has won much attention.
Their plan to seek jobs abroad comes as revenue is declining within the Japanese sushi sector amid a cutthroat price war within the restaurant industry overall, which means consumers expect to pay less and receive more.
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