Price war behind who tears the fly-.doc

 PAGE \* MERGEFORMAT 7 ‘Price war’ behind who tears the fly? In the competition for clients of the war, price war is the most business managers in the hands waving weapons. Of course nothing wrong with attractive low price, but the mutual retaliatory price cuts will only bring the whole industry profits declined dramatically. Today, the U.S. market, companies are afraid of the ‘China price’ - the price of Chinese companies is better than competitors by 30% to 50%. On the contrary, over the past dozen years, the United States and other developed countries, fewer companies than the price war. Coca-Cola and other traditional companies not only price competition, but price increases from time to time. In this regard, Wharton marketing professor Zhang (Z. John Zhang) believes that Western companies and Chinese enterprises are two completely different world. Professor Zhang said that in the West, companies have raised prices to avoid war, because we agreed that the outbreak of a price war would have disastrous consequences for the company and resulted in the failure of managerial rationality. When the highly competitive and increasingly more intense competition, price cuts is the pattern of corporate breakthrough weapon of choice. In fact, regardless of ‘cheap no good stuff’ to withstand the scrutiny of logic, China’s people are the subconscious with the ‘affordable’ consumer values. In this respect, the price war is popular consumer favorite. Well, break out the price of war, God (consumer) laugh, but who’s tears in the fly? We are all familiar with a comic dialogue - ‘s cloth heads’, which have such an episode: the intense competition in selling to the time when, to 5 hair to five hair, Hen Buneng people to put away white cloth,赔本赚吆喝 also expense. Unfortunately, selling cloth head this scene played repeatedly in the real world: There are 30 years of history, Hangzhou everything to produce silk Lee Group, famous for its production of quality silk products most