How to deal with price wars-_1.docVIP

 PAGE \* MERGEFORMAT 5 How to deal with price wars? I am afraid that a price war, the words are not familiar with marketing staff, it is more scared of many companies, then the companies how to deal with price battle? First, analysis of who is to launch a price war. In general, the price war by an industry leader 〔 like Changhong launched the ‘clean-up gateway’〕 and industry price war initiated by the challenger. They initiated a price war against other companies tend to bring a fatal blow. If the enterprise is that they do not attach importance to a price war initiated by, then the result would probably be disastrous. However, if the price war is only addition to the above companies to launch for individual regions, then the enterprise will be calm, do not blindly involved in price wars. Second, analysis of price war occurred in the background and launch a price war business purposes. In general, the price wars have occurred within the industry competition of disorder, in a period of industry consolidation industry. This time is often large enterprises, while the industry average profit margin is higher. Industry leaders in order to obtain a larger market, it is easy to use price wars to clean up the portal; industry challengers in order to go beyond the industry leader, a leader in general will also take advantage of crisis, the use of a price war this weapon. At the same time are also prone to price wars in the enterprise can not tolerate a large inventory and production capacity of pressure and launched a price war, just like Changhong to launch a price war that year inventory too much pressure, but also important reasons. This price war of the most vulnerable in the automotive and appliance industries. Price wars are once again to give companies assess the damage. Another price war broke out, look at the number of companies involved and analysis of all the products or some of the products involved. Like instant noodle industry, to see if low-grade su