Result of price cuts would be tantamount to giving up the brand.docVIP

 PAGE \* MERGEFORMAT 5 Result of price cuts would be tantamount to giving up the brand In 2006 China’s auto market continues to introduce new vehicles at the same time, the price war also play a very dynamic. Some people say that a price war make a real strong enterprises survived, is a good thing for consumers; while others said that the price war is not only lower prices, as well as consumer sentiment recognition and corporate credibility. In fact, these two points have some truth. . Some enterprises have already cut prices is to squeeze out the weaker competitors in the market, creating a certain scale of market monopoly, and then after the price raise up. This is evident from marketing behavior is normal. Cut prices to compete in the results, will squeeze out smaller brands, which is in the affirmative. Small brands have been squeezed out of the market, large enterprises will produce a certain degree of monopoly. Monopoly operators have advantages and disadvantages. Advantage is that, with the increase in the size of large enterprises and R amp;amp; D capabilities, product quality will improve; disadvantage is that a monopoly after the reduction in consumer choice, which must be to raise prices in order to maintain the existing level of profits. However, there appears to be a problem is to some of our competitors out of the market, prices are raised not up. Because now we all want to make profits and plunder market share, but the idea of each company are not the same. The beginning, there is a company price cuts, and several other companies want to maintain stable housing prices and high profit margins, we will never drop, so that you can create a climate in which the industry maintained a smooth development; but now that there are many companies Biebu Zhu, saw lower prices as part of enterprise short-term exploitation of the profits of the Xin Yang, and would also like to get involved. This further price cuts after a few businesses, there will be kno