How to deal with price wars-.docVIP

 PAGE \* MERGEFORMAT 12 How to deal with price wars? That the modern enterprise price war a very important marketing tool in the market price of the operation of the rational use of leverage and implement effective market competition, which is the enterprise an important part of marketing strategy. On the other hand, frequent ‘price war’ is contrary to the law of the market and the economy of non-normal competition means excessive, vicious competition, often resulting in serious business losses in the competition situation, and even die from this business. The reason, ‘price war’ is the source of the current oversupply of products, similar products surplus between the various manufacturers products identical, appearance, shape. Quality and performance there are no major differences, homogeneous phenomenon of serious after-sales service is not in place the essential elements of such enterprises. In our country at this stage, ‘affordable’ is still spending time in the selection of residents of the main starting point. Therefore, price wars are often used for enterprises, and applied successfully. Household Appliances price war intensified, a number of business operators have been caught in ‘price war’ in vicious circle of being, product prices dropping lower and lower, but the market has continued to shrink, while corporate profits are declining. The significance of price war It is undeniable that the existence of a price war has its positive significance. Experts worked out a price war of the seven active role in: 1. A price war is the inevitable product of the market economy is an important part of marketing. 2. Price war can quickly promote market expansion, improve social purchasing power and expanding domestic demand. 3. Price war could be out of a number of low-quality product manufacturers and for short-term interests of the persons, to stop duplication of investment and social resources will be integrated and utilization. 4. Price war that consumers c