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Undercutting: meaning, definitions and examples

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undercutting

 

[ ˌʌndərˈkʌtɪŋ ]

Verb / Noun
Context #1 | Verb

business competition

Undercutting refers to the practice of selling goods or services at a lower price than competitors. This strategy is often used to attract customers away from rivals and can lead to price wars in the market.

Synonyms

bargaining, discounting, slashing prices.

Examples of usage

  • The store is undercutting its rivals to increase market share.
  • She decided to undercut the competition by offering discounts.
  • They faced challenges when retailers began undercutting their prices.
  • Undercutting in the market can lead to significant losses for established businesses.
Context #2 | Noun

economic strategy

Undercutting, as a noun, describes the act of offering lower prices than competitors to gain an advantage. This approach can disrupt traditional pricing strategies and has implications for overall industry pricing.

Synonyms

cheapening, price reduction, underrunning.

Examples of usage

  • The company's undercutting forced others to rethink their pricing strategies.
  • Excessive undercutting can harm the reputation of a brand.
  • They engaged in undercutting to successfully enter the new market.
  • The undercutting in this sector has reduced profit margins significantly.

Translations

Translations of the word "undercutting" in other languages:

🇵🇹 redução de preços

🇮🇳 कम कीमत पर बेचना

🇩🇪 Unterbietung

🇮🇩 pemotongan harga

🇺🇦 зниження цін

🇵🇱 poniżanie cen

🇯🇵 価格競争

🇫🇷 sous-enchère

🇪🇸 subasta a la baja

🇹🇷 rekabetçi fiyat düşürme

🇰🇷 가격 인하

🇸🇦 خفض الأسعار

🇨🇿 podbízení cen

🇸🇰 podbíjanie cien

🇨🇳 削价竞销

🇸🇮 zmanjšanje cen

🇮🇸 verðlækkun

🇰🇿 бағаны төмендету

🇬🇪 ფასების შემცირება

🇦🇿 qiymət endirilməsi

🇲🇽 reducción de precios

Etymology

The term 'undercutting' originates from the combination of the prefix 'under-' meaning 'below' or 'beneath' and the verb 'cut'. Historically, it has been used in various contexts, including trade and economics, to describe the act of cutting prices to compete more effectively. The usage of the term became more prevalent in the context of competitive business practices in the late 19th and early 20th centuries, particularly during economic periods where businesses sought to gain market share through aggressive pricing strategies. Over time, undercutting has become a common term in marketing and business literature, illustrating the ongoing struggle among businesses to attract consumers through price competition.

Word Frequency Rank

At rank #25,035, this word represents specialized academic or technical vocabulary. It's less frequently encountered but may be valuable in specific contexts.