Reflective color TV price war.docVIP

 PAGE \* MERGEFORMAT 4 Reflective color TV price war Panda Electronics Group Co., Ltd. Deputy General Manager of TANG Wai-reflective color TV price war Since June this year, this is the off-season of the TV market because of the media ‘color TV summit’ of the speculation has become like a raging fire, ‘minimum prices’ is a target of public criticism on the one hand color TV summit convened again and again, on the other price war is everywhere intensified. In the face of brutal competition in the market, the company once again unable to play a ‘price cut’ card. This summon wind and rain in the color TV industry, ever-victorious trump card, but today, such as quenching thirst with poison, do nothing. I believe that the color TV industry is to the need for deep reflection time. Color TV industry, experience and lessons learned for the operation and development of state-owned enterprises, for facing the accession to WTO, has an important national industry for reference. Here, I talk about three aspects of color TV price war views. First, the resulting color TV price war continued for many reasons. The first is the irrationality of the social allocation of resources. Redundant construction for years, blindly, leading to a significant excess production capacity. Some enterprises have a one-sided pursuit of so-called ‘economies of scale’ and solely on the ground the scale of production, leading to a serious imbalance of supply and demand. Second, domestic color TV industry in the core technology has not made substantial breakthroughs can only carry out the concept of endless speculation. In the homogenization of competition, price wars are naturally the first choice. Industry, the lack of access and exit mechanisms are caused by another reason for the price war, combined with the concept of local protectionism mischief making ‘excellent Nan Sheng, bad hard to discard’. Again, a smaller elasticity of demand for color TV, color TV ownership in a larger urban populatio