at the beginning I would like to say the word "respect", I think it is a strange word in a title of "Price war". but let me explain something in the world of business. for a company that deals with a certain product "X" with a price "Y" and they have distribution channels in "A & B & C"
X is the product.
Y is the Price.
A is the first distribution channel which is the shops of the company or in business world is the retail shops.
B is the second distribution channel which is the wholesale section in the company.
C is the third distribution channel which is the on-line section or the E-Commerce websites.
So all of those channels are points of sales for the company and all of them are restricted by the main source which is the company. and they are restricted by the retail price that the company set.
Of course the shops that owned by the company is followed by the retail price that the company put, but regarding the wholesalers, they have to be followed by the retail price of X, and the third channels also has to be followed by the retail price. and if there is any changes in this retail price, both the wholesalers and the on-line channel will damage the price of the retail. so that is why i am caring about how to finalize and unite the price of all the channels.
Written by Mohammed Hussein