People unable to stop price war.doc

 PAGE \* MERGEFORMAT 9 People unable to stop price war First, the price war in the mind and Reflection As marketing guru Philip Kotler #8226; said: There is no price that can not be two cents off brand loyalty, customers want the price to as low as possible most of the time of purchase. So many companies in China have the “price war” as a competition weapon, hoping to gain ground, enhance their market share, sales and profit gains ideal. Hope small profits every enterprise, the use of volume growth to improve profits, but the result of fratricide, often turned into a “Kill thousand, from the loss eight hundred” of the tragic bloody. Chongqing Lifan Group, owner of Yin Mingshan published in 2010 the article “lt;Reflection inexpensive gt;gt;(lt;lt; competitivenessgt;gt; Joint Finance 4, review and reflect on the Chongqing motorcycle motorcycles in Vietnam and Japan a decade wrestling. The article said the Vietnamese market in 1998 , bending beam type dream motorcycle is priced at $ 2,100 each, while the same model is only $ 500 CIF China, car, domestic enterprises will be formidable win the Vietnamese market. but “it also Bo Xing Yan, whose death has suddenly Yan “, not a few years, China’s enterprises never led, the Japanese motorcycle and regain the top spot in the Vietnamese market. being undone What is the reason? a lot of people, asking Chinese enterprises, including Yin Mingshan themselves. bitter experience, is rooted in Chinese companies are most keen price war, price of each motor from over 2000 U.S. dollars to hit $ 500, the last even as low as $ 300, with the prices of raw materials, exchange rate appreciation, trade friction, and one storm hit to one after another crashing down. In contrast to Honda as the representative of the Japanese companies, has stabilized at about $ 1,200 per motorcycle, product quality, improve service, and won the customers laugh in the competition to the end. Vietnam to learn the lesson of blood, Yin Mingshan that “c