Media File #5

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Price wars help 'struggling' families: Coles

march 29, 2011 SMH

This article relates to what we have been talking about  in  commerce because it is talking about the "competition" price war between Coles and Woolworth's. they have recently permanently reduced their  homebarand price of milk to just $1 a litre this is not only competition between Coles and Woolworth's but it is  also ultimately driving small independent fruit shops out  of business. But Coles claims that ,"Our job...is to offer all our customers quality food that costs less and the information we have released today shows that we are doing this. No matter what your household circumstances, our Down Down price cuts are bringing real savings to real Australian families every day.'' This is interesting because obviously Coles would not say that they are trying to drive out smaller business but many are saying that, "the price war will drive customers to own-brand items and lead to reduced competition in the long-run." What Coles and Woolworth's are doing is "unethical", but it is part of business, survival of the fittest.