Strategic mistakes of Startup firms greatly contribute to their failure. It has been found that, along with a bad idea & un-doable business model, self killing strategies are also greatly liable for death of Startup business at the beginning. Lets check some of them:
Competing with price: You cannot make money by selling products at lower price than your costs. To enter into market many start-up firms start with a low price strategy that is; they sell products at a lower rate than their competitors even sometimes below their production costs. Delivering low price products means losing money in a continuous basis. This strategy derives from a mistaken assumption that, once a product enter into market with a low price and get customers acceptance, it can charge a higher price later and make profit. But, the strategy has proved wrong in many cases.