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Lisa runs a hair products store in Brisbane's West End. A good part of Lisa's revenue comes from the popular 'Silky-Sleek' hair line. It has

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Lisa runs a hair products store in Brisbane's West End. A good part of Lisa's revenue comes from the popular 'Silky-Sleek' hair line. It has an extremely loyal customer base who often buy other products when they come into the shop to purchase their hair products. Earlier this year, 'Princess Hair' opened up down the road selling hair products at low prices. Princess Hair is a large national chain with a 30% share of the Australian hair products market. They have a history of opening shops near to existing small shops and driving them out of business through heavy discounting. Princess Hair stock all of the Silky Sleek hair products and, for the last 3 months, have been selling these products for 35% below RRP and 10% below the price that Lisa pays for them wholesale (including delivery). Since they opened, Lisa has seen her sales of these products plummet and it is starting to make her worried about the survival of her business

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