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Undercut Meaning: Definition, Examples, and Translations

๐Ÿ’ฐ
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undercut

[หŒสŒndษ™rหˆkสŒt ]

Definitions

Context #1 | Noun

business

A pricing strategy in which a product or service is offered at a lower price than competitors in order to gain market share.

Examples of usage

  • Many startups use undercutting as a way to attract customers away from larger companies.
  • Undercutting can lead to price wars in certain industries.
Context #2 | Verb

competition

To offer a product or service at a lower price than competitors in order to gain an advantage.

Examples of usage

  • The company decided to undercut their rivals by lowering their prices.
  • Competing on price alone can be a risky strategy if you are constantly undercutting your competitors.

Translations

To see the translation, please select a language from the options available.

Interesting Facts

Economics

  • In competitive markets, businesses often use undercutting as a strategy to attract more customers by offering lower prices.
  • Retail undercutting can lead to price wars, where competing businesses continually lower prices to outperform each other.
  • Undercutting might affect smaller businesses more significantly, leading to discussions about ethical pricing practices.

Fashion

  • In fashion, the term can refer to the practice of providing similar clothing styles at lower prices to compete with luxury brands.
  • Undercut hairstyles have gained popularity, where the hair is cut shorter on the sides and left longer on top, symbolizing rebellion and modern style.
  • Fashion brands often undercut each other during sales seasons to capture the attention of bargain hunters.

Business Practices

  • Companies may undercut competitors with promotional deals or special offers to gain market share.
  • The practice raises concerns about sustainability, as persistent price cuts can devalue products and affect overall business health.
  • In the construction industry, undercutting can lead to concerns about quality compromise and safety when lower-priced bids win contracts.

Sports

  • In sports, 'undercutting' can refer to a player making strategic moves to pass beneath an opponent, often used in basketball plays.
  • In boxing, an undercut punch can catch an opponent off guard, symbolizing quick and unexpected actions in competition.
  • Athletes may face criticism if they unduly undercut the performance of others, whether through unethical training methods or tactics.

Origin of 'undercut'

Main points about word origin

  • The term 'undercut' comes from the verb 'undercut,' meaning to cut away from beneath, dating back to the 19th century.
  • It originally referred to cutting the bottom of trees or other materials, leading to its later metaphorical meanings.
  • The prefix 'under-' conveys a sense of being below or beneath, influencing its usage in various contexts.

The term 'undercut' originated in the business world, specifically in the context of pricing strategies. It is derived from the idea of cutting under the prices of competitors to gain a competitive edge. The practice of undercutting has been prevalent in various industries, leading to price wars and fierce competition. Over time, 'undercut' has also been used in a more general sense to describe any action that undermines or weakens a competitor's position. Overall, the history of 'undercut' reflects the dynamics of competition and strategy in business.

See also: cut, cutaway, cutback, cute, cuticle, cutie, cutlass, cutlery, cutlet, cutoff, cutout, cutter, cutters, cutthroat, cutting, cuttings, intercut, offcuts.

Word Frequency Rank

With rank #16,594, this word belongs to specialized vocabulary. While not common in everyday speech, it enriches your ability to express complex ideas.