In a hypercompetitive environment

In an industry where companies are very much dependant

In a industry with very few companies

To differentiate your offer from the average offer of the market, by increasing the value of your product and going premium

To 

differentiate

your offer from the leader on the market

Because it is a game everyone loses: if my competitors decrease my price, I will do the same, and so on...

Because you decrease your margins

Because it sucks

A strategy by which you seek to develop a competitive advantage by cost leadership or by differentiation

A strategy where you try to cooperate with your competitors

A strategy where you hypercompete with your competitors

A strategy where you directly interact with your competitors (verbally or by signaling)