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短学期课程报告外文翻译题目价格战的研究综述学院商学院专业市场营销班级学号学生姓名指导教师审核意见：指导教师（签名）年月日一、外文原文（一）标题：HowtoFightaPriceWar原文：Inthebattletocapturethecustomer,companiesuseawiderangeoftacticstowardoffcompetitors.Increasingly,priceistheweaponofchoice–andfrequentlytheskirmishingdegeneratesintoapricewar.Creatinglowpriceappealisoftenthegoal,buttheresultofoneretaliatorypriceslashingafteranotherisoftenaprecipitousdeclineinindustryprofits.Lookattheairlinepricewarsof1992.WhenAmericanAirlines,NorthwestAirlines,andotherU.S.carrierswenttoe-to-toeinmatchingandexceedingoneanother’sreducedfares,theresultwasrecordvolumesofairtravel-andrecordlosses.Someestimatessuggestthattheoveralllossessufferedbytheindustrythatyearexceedthecombinedprofitsfortheentireindustryfromitsinception.Pricewarscancreateeconomicallydevastatingandpsychologicallydebilitatingsituationsthattakeanextraordinarytollonanindividual,acompany,andindustryprofitability.Nomatterwhowins,thecombatantsallseemtoendupworseoffthanbeforetheyjoinedthebattle.Andyet,pricewarsarebecomingincreasinglycommonanduncommonlyfierce.Considerthefollowingtwoexamples:InJuly1999,Sprintannouncedanighttimelong-distancerateof5centsperminute.InAugust1999,MCImatchedSprint’soff-peakrate.Laterthatmonth,AT&Tacknowledgedthatrevenuefromitsconsumerlong-distancebusinesswasfalling,andthecompanycutitslong-distanceratesto7centsperminuteallday,everyday,foramonthlyfeeof$5.95.AT&T’sstockdropped4.7%thedayoftheannouncement.MCI’sstockpricedropped2.5%;Sprint’sfell3.8%.E-Tradeandotherelectronicbrokersarechangingthecompetitiveterrainoffinancialserviceswiththeirextraordinarilylow-pricedbrokerageservices.Theprevailingpricefordiscounttradeshasfallenfrom$30to$15to$8inthepastfewyears.Thereisalittledoubt,inthefirstexample,thatthemajorplayersinthelong-distancephonebusinessareinapricewar.Pricereductionsper-secondbilling,andfreecallsaretheprincipalweaponstheplayersbringtothecompetitivearena.Thereislittletalkfromanyofthecarriersaboutservice,quality,brandequity,andothernonpricefactorsthatmightaddvaluetoaproductorservice.Virtuallyeverycompetitivemoveisbasedonprice,andeverycountermeasureisaretaliatorypricecut.Pricewarsarebecomingmorecommonbecausemanagerstendtoviewapricechangeasaneasy,quick,andreversibleactionInthesecondexample,thecompetitivesituationissubtlydifferent–andyetstillverymuchapricewar.E-Trade’ssuccessdemonstrateshowtheemergenceoftheInternethasfundamentallychangedthecostofdoingbusiness.Consequently,evenbusinessessuchasCharlesSchwab,whichusedtocompeteprimarilyonlow-priceappeal,arechantinga“quality”mantra.Meanwhile,MerrillLynchandAmericanExpresshaverecognizedthattheemergenceoftheInternetwillaffectpricingandarechangingtheirpricestructurestoincludefreeonlinetradesforhigh-endcustomers.Thesecompaniesappeartobeengagedinmorefocusedpricingbattles,unlikethe“globalized”pricewarinthelong-distancephonemarket.Mostmanagerswillbeinvolvedinapricewaratsomepointintheircareers.Everypricecutispotentiallythefirstsalvo,andsomediscountsroutinelyleadtoretaliatorypricecutsthatthenescalateintoafull-blownpricewar.That’swhyit’sagoodideatoconsiderotheroptionsbeforestartingapricewarorrespondingtoanaggressivepricemovewitharetaliatoryone.Often,companiescanavoidadebilitatingpricewaraltogetherbyusingasetofalternativetactics.Ourgoalistodescribeanarsenalofweaponsotherthanpricecutsthatmanagerswhoareengagedinorcontemplatingapricewarmayalsowanttoconsider.TakeInventoryGenerally,pricewarsstartbecausesomebodysomewherethinkspricesinacertainmarketaretoohigh.Orsomeoneiswillingtobuymarketshareattheexpenseofcurrentmargins.Pricewarsarebecomingmorecommonbecausemanagerstendtoviewapricechangeasaneasy,quick,andreversibleaction.Whenbusinessdonottrustorknowoneanotherverywell,thepricingbattlescanescalateveryquickly.Andwhethertheyplayoutinthephysicalorthevirtualworld,pricewarshaveasimilarsetofantecedents.Byunderstandingtheircausesandcharacteristics,managerscanmakesensibledecisionsaboutwhenandhowtofightapricewar,whentofleeone-andevenwhentostartone.Thefirststep,then,isdiagnosis.Considerasmallcommoditiessupplierthatsuddenlyfoundthatitslargestcompetitorhadslashedpricestoalevelwellbelowthesmallcompany’scosts.Oneoptionthesmallercompanyconsideredwastoloweritspriceinatit-for-tatmove.Butthatpricewouldhavebeenbelowthesupplier’smarginalcost;itwouldhavesuffereddebilitatinglosses.Fortunately,afewphonecallsrevealedthatitsadversarywasattemptingtodrivethesupplieroutofthelocalmarketbyunderpricingitsproductslocallybutmaintaininghighpriceselsewhere.Thesuppliercorrectlydiagnosedthepricingmoveaspredatoryandelectedtodotwothings.First,themanagercalledcustomersinthecompetitor’shomemarkettoletthemknowthattheprice-cutterwasofferingspecialdealsinanothermarket.Second,hecalledlocalcustomersandaskedthemfortheirsupport,pointingoutthatifthesmallersupplierwasdrivenoffthemarket,itscustomerswouldbefacingamonopolist.Theshort-termpricecutswouldturnintolong-termpricehikes.Thesupplieridentifiedsolutionsthateschewedfurtherpricecutsandthusavertedapricewar.Intelligentanalysisthatleadstoaccuratediagnosisismorethanhalfthecure.Theprocessemphasi