The industry is seeing its first price wars
 Foreign competitors are expanding with low prices
 Customers are more price sensitive
 Most competitors are offering low prices after a period where leaders held prices high
 As large competitors match low prices, other competitors face difficulties
 Large competitors are maintaining price levels as smaller competitors discount
 Some competitors seek price increases more aggressively than others
The industry is consolidating through mergers and acquisitions
Demand in the industry is falling
Revenue growth has been high, but has slowed
Competition is expanding with the appearance of discounters
Small discounting competitors have gained a market toehold
Demand continues to grow but margins are low and new entrants are taking share
New competition is entering a settled market
Margins are falling but competition continues to expand aggressively
Both new entrants as well as existing competitors have added capacity
Industry profits are low but downsized capacity remains
Demand has turned up bringing a tight market and more capacity
After high growth, demand has leveled and capacity has increased
Substitute products have grown in importance 
Profits are under pressure despite demand growth
Technology improvements bring falling prices
The industry cannot pass on cost increases
Price wars are spreading in the industry
Demand rose quickly for some time in the past
Observers expect industry capacity reduction
The company believes the industry will be more diplomatic about adding capacity 
Profits are high because the company is in a niche segment
Prices on niche products continue to rise while other prices fall
Prices are rising as the industry runs out of capacity
The industry has been able to preserve margins by increasing prices
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Over the years, we have written a number of Perspectives that cover a broad range of subjects in deteriorating and hostile marketplaces. We recommend that you review some or all of these articles before undertaking extensive analyses or delving deeper into the other Perspectives. These broad discussion Perspectives add important context to the Analyses, Symptoms and Implications and to the other Perspectives. These general articles include:
 Use Subtle Strategy in Tough Markets A hostile market operates differently than a market with “normal” competitive conditions. But as difficult as a tough market can be, it can also present an astute management team with an unusual opportunity.
 Rare Mettle: Gold and Silver Strategies to Succeed in Hostile Markets Managements of winning companies have common themes for success in hostile markets. They each follow five basic themes. While virtually all successful companies are aware of these themes, their implementation differs according to their market position at the onset of hostility.
 Staying Alive in a Hostile Marketplace A few companies survive and even prosper during periods of hostility. How do these companies avoid being the victims of tough market conditions?
 Success Under Fire: Policies to Prosper in Hostile Times A hostile market evolves through six predictable phases. Most companies fail, withdraw or become acquisitions before this evolution is complete. They fail because their management policies were not effective. The few who survive and prosper do so by making decisions that follow two rules: attract customers and discourage competition. Losers lose by not following the second rule.
 The Wisdom of SalomonIn the late ’80s, the investment banking firm of Salomon Inc. decided to leave the municipal bond market – a market the firm had lead. This withdrawal showed just how limited management’s options are when a market goes into overcapacity and how the best choice under such conditions may be the painful decision to leave the industry.