From the Glanz re talking about price.docVIP

 PAGE \* MERGEFORMAT 9 From the ‘Glanz’ re talking about price Since August 1996 the first price reduction by Glanz since the microwave oven market will fall into a price war. Various manufacturers in order to compete for a share of the market, competing price cuts, and vigorously step up promotional efforts, the price war intensified. Among them, the success of Galanz by cutting prices, and firmly secured a market leader of a group of bits, more than 60% market share to become the world’s largest manufacturers of microwave ovens. The May 18, 1998, Glanz announced that its products will be fully up prices, an increase of about 10% of the initial set at the end will return in October 1997 before the price cuts the value of the total increase will reach 30-40%. Why microwave when market competition is so fierce, Glanz seem strange to take the initiative out of the shadow of a price war, while the prices then the market will bear little risk? An enterprise price increases cause analysis 1. ‘Price method’ is forcing companies to examine their own implementation of the price behavior May 1, 1998 implementation of the ‘price method’ in Article 14, paragraph 2 provides that companies can not afford low-priced dumping their products. This provision can be said for owning household in the microwave market, raised a serious warning. Microwave oven prices from a few thousand dollars two years ago to the present several hundred dollars, and in line with a large number of promotional merchandise, it is clear that many businesses already operating in Bulgaria to this point below, struggling to sustain their own market share. Then it also belongs to Galanz dumping it? Such a large market share can bring much profit? As a leader in Glanz’s price action would inevitably lead to the full attention of the national legal department, if it violated the legal, corporate image will fall into what kind of embarrassment! Therefore, Glanz need to check their price behavior, was forc