7 Examples of Competitor-Based Pricing Across Industries

Competitor-based pricing is a cornerstone of modern eCommerce and retail strategy. Businesses across industries analyze their competitors’ pricing strategies to stay competitive, maximize profits, and attract customers. This approach ensures that pricing aligns with market expectations while allowing businesses to position themselves strategically.

In this article, we’ll explore 7 real-world examples of competitor-based pricing across different industries. By understanding how businesses use competitive pricing, you can gain insights into optimizing your own pricing strategy.

What Is Competitor-Based Pricing?

Competitor-based pricing, also known as competitive pricing, is a strategy where a business sets its prices based on competitors’ pricing structures rather than solely on production costs or demand. Companies using this strategy often fall into one of three categories:

• Pricing below competitors — to attract price-sensitive customers.
• Pricing at the same level as competitors — to stay in line with industry norms.
• Pricing above competitors — to signal higher value or premium quality.

Now, let’s dive into real-world examples of how businesses apply this strategy across different industries.

1. Supermarkets & Grocery Chains: The Battle for the Lowest Price

Example: Walmart vs. Target vs. Kroger

Large supermarket chains consistently monitor each other’s pricing to adjust their own. Walmart, known for its aggressive everyday low-pricing strategy, frequently undercuts competitors by leveraging economies of scale. In contrast, Target often matches Walmart’s prices on key items to stay competitive, while Kroger relies on loyalty programs and discount promotions to maintain its market position.

Key takeaway: Price competition in grocery retail is intense, with retailers using price matching, discounts, and promotional pricing to attract customers.

2. Consumer Electronics: The Smartphone Wars

Example: Apple vs. Samsung vs. Google

Apple positions its iPhones as premium devices and sets prices above competitors. Samsung and Google, however, engage in more direct competitor-based pricing. Samsung often adjusts its flagship phone pricing in response to Apple’s latest releases, ensuring its high-end models are either similarly priced or slightly cheaper. Google’s Pixel phones, in contrast, are priced aggressively to offer a balance between affordability and high-end features.

Key takeaway: Competitive pricing in electronics balances innovation, brand perception, and market positioning.

3. Airline Industry: Dynamic Pricing Based on Competitors

Example: Delta vs. American Airlines vs. Southwest

Airlines use real-time competitive pricing strategies, adjusting fares based on rivals’ prices. If Delta lowers its prices on a key route, American Airlines and Southwest often follow suit to maintain competitiveness. Dynamic pricing in the airline industry is enabled by sophisticated AI-driven pricing algorithms that continuously monitor the market.

Key takeaway: The airline industry’s competitive pricing is highly dynamic, relying on real-time adjustments to stay relevant.

4. E-Commerce Marketplaces: Amazon’s Price Wars

Example: Amazon vs. Walmart vs. Best Buy

Amazon is a leader in competitive pricing, leveraging automated repricing tools to adjust prices in real-time. Walmart and Best Buy have adopted similar approaches, with Best Buy offering price matching and Walmart focusing on everyday low pricing. Amazon’s algorithm ensures that its prices remain competitive across thousands of products.

Key takeaway: E-commerce pricing is highly competitive, and automation plays a crucial role in maintaining price leadership.

5. Fashion & Apparel: Fast Fashion vs. Luxury Pricing

Example: Zara vs. H&M vs. Nike

Fast fashion brands like Zara and H&M adjust their pricing based on competitors, often keeping their prices within a narrow competitive range. Meanwhile, Nike employs a value-based pricing approach but still monitors competitor prices to ensure its products remain competitive in different market segments.

Key takeaway: Competitive pricing in fashion varies based on brand positioning — fast fashion competes on price, while premium brands leverage perceived value.

6. Automotive Industry: Dealership Price Matching

Example: Toyota vs. Honda vs. Ford

Car dealerships often adjust vehicle prices based on local competition. If a Toyota dealership offers a discount on a specific model, nearby Honda and Ford dealerships may respond with similar incentives. Some manufacturers even offer price-matching guarantees to prevent losing customers to competitors.

Key takeaway: The auto industry uses localized competitor pricing strategies to stay competitive.

7. SaaS & Software: Subscription Pricing Adjustments

Example: Netflix vs. Disney+ vs. Amazon Prime Video

Streaming services frequently adjust their subscription pricing in response to competitors. Netflix, for example, increases prices cautiously to avoid losing subscribers to Disney+ or Amazon Prime Video. Meanwhile, new entrants often launch at lower prices to attract customers before gradually increasing rates.

Key takeaway: SaaS pricing is dynamic, with businesses adjusting based on competition and perceived customer value.

Final Thoughts

Competitor-based pricing is an essential strategy across industries, helping businesses remain competitive while maximizing profits. Whether you’re in eCommerce, retail, technology, or services, understanding how competitors price their products can guide your pricing decisions.