PriceWaronColorTVIndustries青岛科技大学英语103班DefinitionofPriceWarPricewarisatermusedintheeconomicsectortoindicateastateofintensecompetitiverivalryaccompaniedbyamulti-lateralseriesofpricereductions.Onecompetitorwillloweritsprice,thenotherswilllowertheirpricestomatch.Ifoneofthemreducestheirpriceagain,anewroundofreductionsstarts.GeneralIntroductionoftheChina’sColorTVIndustriesTheChineseTVindustryhasexperiencedahighdevelopingprocessbybringinginthefirstcolorTVproductlinesince1979,anditsproductionhaskeptagrowingspeedover20%annually.ChineseTVindustryhasestablishedaspecificproduction-manufacturingsystemforits30years’development.TheproductionefficiencyandproductioncosthasbeenahighlevelaroundtheworldandbecomeoneofChineseindustrieswhichcancompetewithinternationalenterprises.ChinesecolorTVindustrythenblossomedoutintosomeenterprisegroupswhicharedominatingthemarket,well-knownandwithhigh-levelmanagement,suchasHisense,ChangHong,KonkaandSkyworth.TheDevelopmentofTheTVIndustries195819781985198919952000nowblackandwhiteTVsetIntroductionstageFluctuationstage波动期SteadygrowthAdjustmentandgraduallymaturestage1996-2010年中国彩电产销量SixMajorPricewar1、Thefirsttimeofit.Intheearlyof1989,governmentimposedthetaxonconsumptionforTVindustry,whichmadeadepressedatmosphereinTVindustry,causingcolorTVproductionoverstockedandashortageoffunds.ChangHongmadeastepthattheymadeeverycolorTVsoldatareducedpricedof350yuansinceAugust9th.ThiswasthefirstreducedpriceforcolorTV,andChangHongbecametheonlywinnerinthecampaign.2、Thesecondtimeofit.OnMarch26th1996,ChangHongcolorTVfirstreduceditsTVpriceat30%onanationalscale,whichbroughtashocktothecolorTVindustry.Fromthattimeon,consumerswerenotunreasonableanymoreandourcivilbrandthendominatedthemarketagain.3、Thethirdtimeofit.In1997,GaoLuHuamadeapushoflowpricedTV,forcingalmostallbrandstoreducetheirpriceat15%to25%andselllowpricedproduction.BesidesGaoluhua,theirpurposeofreducingpricewastoforcemostofenterprisestoreducetheirprofitwhichshouldbemorereasonable,ratherthantakeoverthemarket.However,themarketshareofGaohasn’tbeenover5%.4、Thefourthtimeofit.InJuneof1998,TCLandKoncareducedtheirpricefrom500to1000yuanasaspecialsale.WhilethecolorTVindustrygainedless5.2billionyuanduetoreducingprice,whichbroughtabadinfluenceonthefinancialaccumulationandtechnicalprogressincolorTVindustry.5、第五次,1999年4月19日,又一次大降价。面对挑战,长虹集团1998年秋季利用其雄厚的资金实力大量收购彩管。1999年4月,长虹在南京又一次首先降价,据称幅度在10%—20%,随后康佳、TCL、创维等几乎全部国内品牌纷纷表示降价。从短期的表现来看,长虹的市场占有率在上升,国外品牌市场份额也增长1.1个百分点。Reducingagain.6、第六次,2000年8月11日,第六次彩电价格大战爆发。2000年6月9日彩电巨头联合推出彩电价格联盟,但这不但没有阻止彩电价格的进一步下滑,反而演绎了一场极富戏剧性的彩电价格蹦极跳。第一波蹦极,以特价机为主打品种,其特点是商业资本的参与。第二波蹦极,以8月12日长虹、康佳、熊猫等大幅降价为标志。TherePeriodsPeriod1Period2Period3Before1990(Competitiondegreeisrelativelymoderate)Fromtheearly90’stobeforeandafter1997(usingpricecompetitiontoachieveindustrysurvivalofthefittest)After1997(oversupply)TheReason:1、Theeconomicstructureformedundertheplaneconomymakesthepricewarbeinevitable.Enterprisedimensionsslantssmall,lowleveloftechnology,innovationandR&Dabilityinadequacy.Undertheconditionofmarketeconomy,thesellerimplementsthepricewartomaintainmarketshare.2、Multi-NationalCorporationsusetheirbrand、technology、capitalandmarketingexperienceadvantages,andconsumers’western-worshippsychologicaltoliftapromotionwaveinmanybigcities.3、Pricewaristheinevitableresultofmarketmechanismplayarole.Enterpriseswithstrongsenseofcompetitive,theadvantagesofdimensionsandtechnologycanreducecosts.Andthentheycaneliminatethesmallscale,highcostofenterprisesbyusingthepricewar.4、Underthesocialistmarketeconomicsystem,enterpriseslaunchedapricewar,inactually,it’stheeconomiclawontherectificationofdistortedpricehistory,istoreturnthevalueoftheactualproduct.5、Theunconspicuousdifferenceinproductisanotherimportantreasonthatcausedpricewar.Asaresultofindustryofourcountrycolortelevisionproductionlineisalmostintroduced,therefore,differententerprisestechnicalstandardshavegreatsimilarities.Thishomogenizationphenomenonintheenterprisesleadstothatenterprisesaredifficulttoformthemarketstructureofmonopolisticcompetition.Pricehasbecometheimportantcriterionforconsumerstopurchaseproducts.Itleadstothenewroundofpricewarwhenenterprisestrytotakeovermarket.(Seechartanalysis)6、Mostofbusinessesfocusonshort-terminterests,especiallydistributorloyaltytowardsthecompanyisextremelylow,sotheyareaccustomedtotransformthepromotionalbenefitsintopriceadvantagetodevelopthemarketcompetingthatplayedanimportantroleonthepricewarinacertainextent.7、ColorTVasakindofelasticgoodsissuitableforthetraditionalpuerileprinciple,andit’stherootofpricewaroftrade.(Seechartanalysis)TheInfluence:Accordingtocustomers’pointofview,thepricesofcolorTVscomedown,reducesconsumers’spending.ItsuggeststhatconsumerscanbuymorecolorTVunderthesameincomecondition,expandingthedemand,anditcanmakemorelow-incomefamiliestoenjoythewelfareofconsumeTVs.Forhigh-incomeclass,theycanaffordthehighercommodityprices,sothecolortelevisionpriceelasticityisrelativelysmall.Butforthemajorityoflow-incomefamiliesandruralconsumers,thehighpriceofcolortelevisionwillmakethemstepb