Price war

price war is a word often heard in daily economic activities, then, what is the price war? Why is there such a phenomenon? What are the benefits of price war? What is the significance? May wish to come up with a detailed understanding of the next!

in marketing practice, enterprises with competitive price and to initiate or participate in the price war, mostly because of the production enterprises in order to expand market share, occupy the market, improve the enterprise competitive price; some enterprises are sometimes in order to revitalize the capital for the development of new products and product inventories, and some are for to improve the industry barriers to entry. In addition, some companies are due to similar products launched a price war, in order to consolidate their existing market and had to be passive, blindly follow up, involved in the price war. For example, in order to improve the entry barriers of foreign enterprises after China’s entry into WTO, Chinese enterprises have taken the initiative to reduce the price. In the year of the color TV industry, Changhong initiative to provoke a price war, other color TV manufacturers have also carried out follow-up.

1. price war is the inevitable product of market economy, is an important part of marketing. 2 price war can rapidly promote market expansion, improve social purchasing power and expand domestic demand. 3 price war can eliminate a number of inferior products manufacturers and seek short-term interests, to prevent duplication of investment, so that social resources can be integrated and rational use. 4 price war can directly benefit consumers. Enjoy the modern quality of life with less cost. 5 price war can enhance the market competitiveness of the national brands fighting overseas. 6 price war to accelerate product innovation and marketing practice. 7 price war to promote Chinese enterprises to optimize the management level and the quality of human resources.

, Xiaobian for a lot of information from many aspects of interpretation of the price war for you, hope you can bring more understanding, let you know more about your business, in order to help entrepreneurs!


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