Ausweiss sales initiative to spark price war?

It's a buyer's market in the leisure clothing business, as market leaders Ausweiss take on newcomers N.E. wear, who have grabbed a substantial market share.
    With sales booming in the leisure clothing industry, Ausweiss has decided to risk cutting costs aggressively, some even below cost, believing that higher sales will offset thinner margins. The company is perhaps gambling that N.E. wear will not be able to follow after its recent, expensive sales drive.

    Ausweiss director Mike Herman told us ' leisure sales are the next big thing in the clothing industry. There is a new market out there with teens and young adults realizing that leisure clothing is excellent value for money. Ausweiss has chosen to make that market even more attractive by making its product still more affordable.' He denied that his company's price cuts were related to the sharp rise in N.E. wears sales, which he dismissed as 'a temporary phenomenon'.

N.E. wear's Stephen Jones said that his company 'was relaxed' about the Ausweiss move. 'It's a sign that the market is sorting itself out. If Ausweiss is moving toward the cheap end of the market, this leaves N. E. wear alone at the quality end. ' He added that N.E. wear did not intend to revise its sales targets in the light of the Ausweiss move. 'We're working at close to capacity to meet demand, and it is showing no sighn of slackening.'
      On the prospect of a price war he said 'they can win it. It's the quality war that counts.'