Price butcher Glanz can go far.doc

 PAGE \* MERGEFORMAT 9 Price butcher Glanz can go far April 14, Galanz Zhongshan factory hundreds of employees gathered booing, the dormitories, canteens, workshops and other pipeline smashed due to protest wage lower than the standard job when the company promised. Glanz this ‘thwarted incident’ occurred after one month, May 13, Galanz Releases Internet exclusive brand UU, declared that the ‘ultimate cost’ model - cost pricing, for the younger consumer groups. In fact, the cost price is just rhetoric Galanz a low price strategy can be said that within a month, once a passive, one is active, Galanz on the ‘cheap’ made two specific marketing, however, is the reaction of public opinion : ‘price butcher’ the road gets narrower. ‘Destroy value theory ‘ Glanz first production of feather products, production of microwave ovens in 1993, but it took only two years to 25.1 percent market share of China’s first, in 1999 the market share of 70% or even no exaggeration to say that Galanz microwave oven synonymous, and its monopoly weapon is cheap. August 1996, Galanz microwave oven for the first time price reduction, with an average reduction of 40%, then the price of a Panasonic microwave oven market in China more than 3,000 yuan, while the price Galanz microwave oven is about 1,600 yuan. After seven years, a total of Galanz nine massive price cuts, but very hard fall, do not fall already, then drop down to 30%. Why Glanz can get the price down so low? One reason is the size of the manufacturing industry believes that, ten years, Galanz to expand production capacity, expansion of market capacity through price cuts and promotions, increase market share, reduce costs, each on a scale level, significantly lower prices on such 2004 Glanz breakeven point scale to 12 million units to set prices, the annual output of 10 million units blocked the following scale microwave for this bloody business, such a statement afterwards Glanz president Liang Zhaoxian record:.