A process of competition that drives some existing firms out of the market. Destructive competition can occur when prices are driven down to the point where some firms are unable to make a profit. Episodes of corporate failure in the coal and steel industries, some agricultural industries, and the automotive industry have been interpreted as the consequence of destructive competition. See also cut-throat competition.
Reference: Oxford Press Dictonary of Economics, 5th edt.
Invezz is a place where people can find reliable, unbiased information about finance, trading, and investing – but we do not offer financial advice and users should always carry out their own research. The assets covered on this website, including stocks, cryptocurrencies, and commodities can be highly volatile and new investors often lose money. Success in the financial markets is not guaranteed, and users should never invest more than they can afford to lose. You should consider your own personal circumstances and take the time to explore all your options before making any investment. Read our risk disclaimer >