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The downward demand spiral for a company is the continuing reduction in the demand for its products that occurs when prices of competitors' products are

The downward demand spiral for a company is the continuing reduction in the demand for its products that occurs when prices of competitors' products are not met and (as demand drops further) higher and higher unit costs result in more and more reluctance to meet competitors' prices.

Could you describe this phenomenon with an example (professional experience)? How could we prevent to entering in spiral?

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