The price war has been questioned in China, mainly because people simply look at the Chinese-style price war. If you understand the principles and background of the Chinese-style price war, you may have different conclusions. Fifty years ago, on the first day of its opening, Wal-Mart Store opened a sign of “everyday low priceâ€. General merchandise was 20% cheaper than its competitors and brand-name goods were 50% cheaper than its peers. Wal-Mart has achieved great success. Isn't he right to do this? Of course, paying attention to Wal-Mart's price is not enough, but also pay attention to what is behind the Wal-Mart price system. It is said that Chinese companies are fighting a price war. In fact, Chinese companies only fight price wars in the country and they do not have a price war in the international market. Because the price system of Chinese companies and the price system of multinational companies do not compete on a horizontal line at all, it is impossible to collide with a plane with a difference of 300 meters between the two aircrafts. The strategic significance of China's price is that it has changed the price comparison system, making China's price unique in the world. I don't think China's low price is a price war. Chinese companies' low prices have not competed with multinational companies. Multinational companies have done high-end, Chinese companies have done low-end and not at a level. How do we have price competition? The price war that took place in the domestic market has caused more misunderstandings. If there is no Shuanghui launching price war, and a large number of small manufacturers continue to produce, we can still eat counterfeit hams today; if there is no price war for Changhong, there will be hundreds of companies in the color TV industry, and ordinary people may still buy. Can not afford 21-inch color TV. The ultimate beneficiaries of the Shuanghui price war and Changhong's price war are consumers. Those industries where industries are not concentrated must wage a price war, and companies that do not have the ability to survive will even have to survive if they have to fight to produce counterfeit and shoddy products. Further research can also find that price war is an inevitable phenomenon in the process of rapid industrial concentration. The maturity of an industry is accompanied by the collective death of 90%, 99%, or even 99.9% of companies. This process is called industry concentration. Most foreign industries have achieved industrial concentration and have already fought a price war. Most industries in China have not yet achieved industrial concentration, so they must continue to fight price wars. In-depth study of price war will also find several phenomena 1, the price war may be the highest level of competition, it may be the lowest level of competition. The price war may be a way for companies to have no way. It may also be a way for companies to have too many ways. When all of the company's competitive advantages are concentrated, it is a powerful cost advantage. 2. The second party may be killed by the price war. Usually the outcome of a price war is "lose to both sides," which may be a false proposition. The result of the price war may be a win-win situation, while the injured is a third party, just like the price war between Chinese companies, disappearing may be foreign counterparts. 3, the price war can not only play the scale of development, it may also play profit. The price war does not make money. This seems to be the consensus of most people. In fact, this is only the end of the price war. The winners of the price war can not only beat their opponents, but also make profits. Only high-level price war can eliminate low-level price wars, low-level price wars are price harassment, and high-level price wars are "clean-up portals." The price war is the only way to catch up with the development of the country. Whether it is the United States, Japan, or the four small dragons in Asia, they all experienced a development path that expanded their scale through price warfare and then realized industrial upgrading. 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