Question
Strategic management From chapter 6 and this is an Ethical-Social question. Suppose Procter & Gamble (P&G) learns that a new start-up company called Method (www.methodhome.com)
Strategic management From chapter 6 and this is an Ethical-Social question. Suppose Procter & Gamble (P&G) learns that a new start-up company called Method (www.methodhome.com) is gaining market share with a new laundry detergent in California. In response, P&G lowers the price of its Tide detergent from $18 to $9 for a 150-ounce bottle only in its California market where Methods product is for sale. The goal of this loss leader price drop is to encourage and persuade Method to leave the laundry detergent market because it wont be able to earn a profit. Is P&Gs business practice of a loss leader ethical? Why or why not?
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