In the early 1990's, Tweeter, etc., a small regional retail higher-end audio and video equipment in the face of competitive pressures on the prices of several major regional and national networks of consumer electronics. In response, in 1993, they introduced the "Automatic Protection Price" (APP) as the cornerstone of the recovery strategy prices confidence in the minds of consumers. In APP, Tweeter monitor ads for local newspapers and automatically sent to the customer to check the return if the item purchased at Tweeter was announced at the lower price of a competitor. Three years later, in 1996, the tweeter questioned the impact of nuclear power plants on their current competitive positioning. Moreover, with the entry to another large chain discount tweeter forced to question how effective the application will be on the market, increasingly dominated by large retail discounts. "Hide
by John T. Gourville, George Wu Source: HBS Premier Case Collection 24 pages. Publication Date: October 21, 1996. Prod. #: 597028-PDF-ENG
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