This year, due to the rising prices of raw materials and other reasons, the prices of honeycomb panel products in China have generally risen. At the same time, the price war of honeycomb panel products across the country has once again begun.
In response to the price war in the honeycomb panel industry, a ceramic expert once said: "If there is no supervision, let the enterprises start the price war on their own, and it will only hurt consumers in the end." Will squeeze the living space of other honeycomb panel companies, because some other small and medium-sized enterprises are too weak to appear "speaking" inadequate and passive. The expert sweated for consumers, but his logic was very different. According to his thinking, because of price reductions, companies that had an advantage in the market may easily crowd out competitors, making it difficult for sellers to form competition and consumers to lose their choice. In the end, consumers will have to suffer a huge loss from being slaughtered by others, so prices must be regulated.
But like this, we don't seem to be able to wait until we can deregulate and engage in a price war. Because if there is competition, there will always be the survival of the fittest, and some companies will survive, and some will die, but the existence of regulation has made some companies an “all-out fight” that will never be able to support them, and other companies will become “immortal” Monopolist. Therefore, the key is not to discuss the feasibility of a price war based on the results of price reductions by the enterprise, but to find out the prerequisites for the price war to achieve competitive effects.
Faced with a price war, honeycomb panel companies intending to monopolize the market are the most frightened. Because competing price cuts mean that there are strong competitors in the market, enough to compete for the market. It was also at this time that there were more “rumors” about the price war. In that year, the color TV industry fought a price war, and many companies couldn't sit still, either shouting at price reductions or jointly organizing a "price alliance." What happened? The price still fell, but the entire color TV industry wasn't ruined by a "vicious price war." Facts have proven that the "killing" of price wars has always been those who are not thinking about aggressiveness, not the healthy development of an industry and the interests of consumers.
In market competition, companies are desperately trying to cut prices. This is not to say that they are inherently fond of price wars, but to face consumer choices, which they have to do. Consumers have a consistent behavior: given the quality of a product or service, the lower the company's bid, the more consumers will buy. With this unwavering preference, consumers are always inclined to buy the same things at the lowest price, or better things at the same price. No matter what kind of competition ceramic enterprises engage in (such as brand competition, quality competition, technology competition, etc.), they must ultimately fall above price competition. Therefore, under the constraints of limited financial resources of consumers, companies must please consumers in terms of "cost-effective" conversion if they want to buy things out of their pockets.
Some people say that the price war is "the easiest and least rewarding way of competition", which can only lead to the killing of both honeycomb panel companies and the loss of both, but the opposite is true. On the surface, it is not as simple as the hawkers in the vegetable market shouting at each other for low prices? But the key point is that shouting for low prices must have “assurance”, otherwise no one can do it at a loss. For enterprises, behind the price reduction is
