Underbid can imply a strategic move by a company to gain market share by offering lower prices. To capture more clients, they underbid their competitor's offer.
Pro Tip 2/3
Risk Implications
Underbidding could lead to losses if costs are underestimated in the bid. The contractor regretted underbidding as the project incurred unexpected expenses.
Pro Tip 3/3
Comparative Advantage
Underbidding usually indicates that the seller has a lower cost base or is willing to accept less profit. Their ability to underbid was due to efficient production processes.