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Do you join the Price war today?

Hot summer weather, always restless.But in the LED display industry, with more fierce LED display price war is more like a big fire all over the whole industry, more stirring people restless heart.Is the so-called "price war", that is, between enterprises by reducing the market price of the product, and a commercial competition, each enterprise have a plenty of take the initiative to provoke "price war", also have a plenty of passive involved.Main inner motive power of the "price war" there is a market pull, cost and technology promotion and so on, its purpose is to suppress the competition, to occupy more market share, etc., such as high-profile dangdang price war, jingdong price war, LED industry price war, and so on.Recently, there are two LED companies "price war" by the domestic market to international market, it is known that a LED companies to bid a foreign project success, and the other a LED company is willing to reduce our price by ten percent, to take the project in bidding for success.
Behind "price war" there must be a lot of reasons, such as some companies use "to" strategy, omit development costs, its product total cost is lower than peers, nature and its sale or can cause "price war";Second, most small and medium-sized enterprises in the field of "red sea" competition, product homogeneityphenomenon serious;Again, in the industry to the enterprise the lack of regulation, tort enterprise to profit by "price war" and had a flawed, it will embolden "price war";Finally, for the sake of the market share of listed companies, will surely contributed to it.
Benign price competition to a certain extent can stimulate consumption, but for a malicious "price war", its disadvantages are also very obvious.First of all, from the enterprise point of view, some small and medium-sized LED enterprises to its own capital chain analysis and budget is not enough in-depth, in the process of "price war" lead to capital chain rupture, so boss overwhelmed to run road.However, for those who lack of independent intellectual property rights, lack of core competitiveness of enterprises, the "price war" is equivalent to quench thirst, short-term or can solve the problem, but in the long run would undoubtedly hurt the innovative consciousness and subjective initiative of the enterprise.Secondly, in terms of products, there are quite a few LED's small and medium enterprises to survive in the "price war", its profit due to in the long-term price war is insufficient, lack of financial support to maintain product quality and after-sale service, thus caused considerable influence on product quality, this undoubtedly overdraw the trust of consumers about the product, for the product brand image of the damage is enormous.
"Price war" in the face of the LED electronic display industry, however, frequently such market conditions, to avoid enterprises involved in "price war" quagmire, small make up think that the key enterprise adhere to their own good positioning, enterprise must be on their own position to remain calm and clear mind, most likely to avoid price war, can't let the "price war" in the short-term profit become the focus of enterprise growth, understand that since the founding of the entire enterprise to win by word of mouth is the most important, not because the market "price war" lurching to join is to build brand for a long time, lost themselves affect the company's long-term development.On their own good corporate positioning, to deal with such bad market environment, market segment is also an important way, each enterprise in order to avoid the "price war", can according to their own product advantage to seek new markets, creating different market segments, according to the requirements of clients to avoid the homogeneity of the product, so as to avoid the "price war" intensified.Finally, we know that innovation is an inexhaustible power to any one area development in the field of LED is also so, here, the enterprise can carry out technical innovation, product innovation and marketing model of innovation, innovation always thinking throughout the production and sales, make innovation leading enterprise development, it is the fundamental way to a stay competitive.
In conclusion, we can know, LED display the "price war" of the industry, a lot of disadvantages to the enterprise and the entire industry, to avoid "price war", every enterprise should pay great attention to, insist on its own position, to find their own market, and through innovative way out of a way of enterprise development has its special features.


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