Word: price
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Dates: during 1990-1999
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...There are certain things that are nationwide and certain things that are local," she says. "If there were something on sale [at one store at not at the other], and someone wanted it for the same price, it wouldn't be a problem...
...manager at the Harvard location, acknowledges the price difference...
...Price...
...Mobil had simply lost control of their fate. For years these commodity companies had gone through booms and busts along with the world economy they played in. But for the past decade it has been nothing but bust. The new economy, with its focus on cost cutting and price competition, has tamed inflation to the point that each year Mobil and Union Camp faced progressively lower real prices for their products. Both companies had done pretty much everything they could to wring out costs, but it still wasn't enough...
...winners from the demise of Mobil and Union Camp will be the remaining players--assuming the deals are approved by shareholders and regulators. The only way to get pricing under control is to take out capacity. Exxon's takeover of Mobil could lead to somewhat higher gas prices, as a price-cutting competitor gets vanquished. And International Paper's stock looks that much better, knowing it won't have to compete with Union Camp. Both companies can strip sales, marketing and technology spending out of the budgets of their prey. It is remarkable how much duplication and overlap can exist...