There is a term meant to describe the following situation, in business strategy:

Suppose there is a market with a few companies acting as a closed oligopoly, with only full-featured and very pricey offers. Then, you enter this market as a new competitor, providing only a very basic offer for a fraction of the price.

A few examples:

  • a car market where you could only find 6-airbags, V8-powered, heated-seats cars, and suddenly you enter with a no-airbag 4-cylinders basic car for a fraction of the cost

  • low-cost airlines when they were still a novelty

  • a company offering a new bare-bones word processor for $10 in a market previously filled with full-featured over-bloated software like Microsoft Word selling for $200

All in all, this strategy is about entering a market with a less-featured, lower-price offer, hoping that the established competition, being in "cash cow" mode, won't have the flexibility to adapt.

I think the term I'm after has "under" as a part of it. I was thinking of under-cutting, but according to a quick Google search, it's not that.

closed as off-topic by MetaEd Jul 19 '18 at 17:52

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You are undercutting the competition.

undercut (ODO)
verb [with object]

1 Offer goods or services at a lower price than (a competitor)
‘Now they are being drastically undercut by competition from the rest of Europe and particularly from Asia.’

  • So that was it! I had trouble finding it back with a Google search, which returns mostly hairstyle or Formula 1 strategy stuff. Thanks for finding out. – Jivan Jul 19 '18 at 6:28

I think we can say 'to dump'. 'Dumping' is an accepted business term.

  • Are you referring to "dumping"? en.wikipedia.org/wiki/Dumping_(pricing_policy) – Jivan Jul 19 '18 at 6:26
  • Yes, it was my spelling mistake. Thank you for correction. – user307254 Jul 19 '18 at 6:29
  • Dumping is different. It is flooding a market with goods to suddenly increase the availability and thereby severely crippling the prices. Though such goods are usually cheaper, they need not be, and dumping is anyway not about their being cheaper. – Kris Jul 19 '18 at 6:30
  • Then it is a 'good dumping'. Business is business, though I am not a businessman. – user307254 Jul 19 '18 at 6:33
  • I don't know of any "good" dumping. All dumping destroys a market. Affects both sellers and buyers adversely. – Kris Jul 19 '18 at 6:37

"Lowball" comes to mind. "Undersell"

  • 3
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  • Undersell also means to undercut, but I see it used more in the secondary sense of selling for a price below its real worth. Which is the meaning it should be correctly used for. – Kris Jul 19 '18 at 6:33
  • Lowball too suffers from the same problem: It is used in a similar sense as undersell, i.e., below true value. In both cases, the comparison is with the item's real value or worth, and nothing to do with the competition. – Kris Jul 19 '18 at 6:35

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