From the blood to the blood - a warning consumption of market competition.docVIP

 PAGE \* MERGEFORMAT 11 From the blood to the blood - a warning consumption of market competition A few years ago in Henan beer market, there is a very classic case. Henan, one of the largest beer producer, with local and other companies fought a war of attrition. That firm’s competitive strategy is the product selling price sank in the end. At that time, the consumption level of Henan Province is not very high, so consumers are particularly sensitive to price, this one move, the market an outcry, a considerable number of the consumer’s direction immediately changed. Other companies in order to maintain their market share and being forced to wage a single bottle of beer prices soon breakdown of the one dollar price. Then, that firm has introduced new measures to improve bottle collection and other raw materials price, attempts to monopolize the market, packaging and raw materials. Other companies were forced once again to follow up, Henan beer market will soon embroiled in a melee. That enterprise’s intention was clear, that is, in order to suppress the local industry market profit margins in order to maintain the business and even low-cost operating strategy, forcing other companies to reduce operating profits, to speed up resource consumption, Wai and not offensive, waiting in the wings hair, use a word to describe is the ‘drag’. Colleagues in the industry a good summary, when that firm’s strategy is to take the fat of the drag thin, thin dragging disease, the disease was worn down, and then close the net, the entire Henan market into its own pocket. The battle lasted for many years, we are exhausted, the end result is striking - the other businesses are not worn down, nor do I have too much self-promotion, the retail price of beer products, how also climbed up. As for this enterprise which, in the same market area, there is no one company would be willing to coexist peacefully with the same industry, business. ‘Couch’s side, How can we allow others to s