Choice of business a competitive basis.docVIP

 PAGE \* MERGEFORMAT 13 Choice of business a competitive basis Recently a period of time, the Guangdong Shunde million and the Group of low-cost sales approach, not only in the gas water heater caused an uproar within the industry, that is in the news and economic theory community has also triggered a heated debate. Argument is 10000 and the Group’s practice is low-priced dumping, whether the breach of industry self-regulation price. This article has no intention from the product’s technical performance and testing of indicators to evaluate aspects, but if the phenomenon through the analysis of what this competition means the choice of target enterprise competition and their effects, and from ‘20000 battle’ to draw some inspiration, perhaps have some benefit. 1, business competition, target selection The sense in economics, business competition, the goal is usually assumed to be profit maximization, but to achieve this goal, companies can have two different strategic options. First of all, the cost of production and marketing under the conditions established, companies can choose to maximize sales revenue development strategies. Because corporate profits equals sales minus cost of sales revenue which also equals the number of sales prices and sales of the product. As the competitive market, individual enterprises can only accept but can not decide on products in the market price, therefore, sales to maximize profits and sales were essentially only through the market to achieve the maximization of collar. In other words, for every business to compete in terms of its goal is often to occupy more market share. There is a problem that sales of enterprise does not necessarily mean that the quantities produced. Under normal circumstances, sales volume generally less than, or at best equal to the number of production enterprises. Because a competitive industry can not fully get all the market information, can not accurately anticipate and grasp the other competito