It easy to see that over a short period of time a price war occurs and the high street store has to reduce their prices to remain competitive if they wish to stay in business. The shopper may say this is a good thing but the cost price squeeze on an item has only one inevitable conclusion, and that is premature product degradation.
As the internet competition increases to the point that the online retailers are no longer making a realistic margin, pressure is placed back on the wholesalers or manufacturers to reduce their costs. In turn if the manufacturer wants to continue with the product then costs are reduced by reducing their margins, reducing quality of materials and build, by reducing the number of options or variants an item may have and by reducing the level of service.
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