• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

The shadow of the price war

Extracts from this document...

Introduction

The shadow of the price war "The sector's output has increased by 24 percent on average since 1997 and reached 23.13 million units. Last year, accounting for half the world' production." The news report aid. But there are only 22.67 million units were sold last year. Therefore 2.26 million were left over. What can the producers, the sellers and the markets do with this large amount of excessive goods? AS China has been the member of W.T.O. , the biggest barriers, tariffs, become smaller resulting the foreign-brandeds swarm into the China market. Facing the disadvantages in technologies and models, what should the domestic producers do? ...read more.

Middle

Facing this problem, what should they do? According to the author's opinion, price will be the most effective weapon for makers to deal with those problem. Price reduction can stimulate the amount of demand. Some of them think the differences between different air-conditioner has become smaller and smaller. In order to seek further development, there are no alternative way except price reduction. They also think this is good for customers. In my opinion, this is just the shadow of the price war. They haven't revealed the veil of the price war. The price war has begun two weeks ago, the price cut ranged from 400 yuan to 1,000 yuan(US$48 to US$120). This is really a big reduction. ...read more.

Conclusion

Now, the price is reduced, are the goods same before? Our customer have benefit or not. The four biggest air-conditioner makers Kelone, Midea, Haier and Gree have claimed that they will not join the price war. "The average benefit of the whole air-conditioner is about 5%. So the space for price reduction is not very large." the president of Kelone group said. The air-conditioner industry is not like the other household appliance, it has a important part on the quality and maintenance service. Some other main stream will also keep the price in same position and work for quality. As a customer, we are willing to see the price goes down. But we never forget the quality. Anyway, the producers must know more than me about this. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Marketing & Research section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Marketing & Research essays

  1. Applied Business Studies

    In different parts of the UK, the shops are different. For example, in Chester, there are many high street clothes shops, like Primark and New Look, but in places like Blackpool, there are also shops there, but the difference is that there's a pleasure beach, and that there are many arcades.

  2. GLOBAL STEEL INDUSTRY DEVELOPMENT

    the finished steel production increased to 23.37 million tonnes, which was 2.8% more than the production of the preceding year. The growth rate decreased drastically in 1997-98 and 1998-99 being 2.8% and 1.9% respectively. The growth rate in 2001-2002 was 4.29% with the total production touching 31.63 million tonnes.

  1. Business Enterprise unit 5

    I will have to face unlimited liability as each partner will be liable for the whole debt of the partnership and risking personal bankruptcy, if the business becomes insolvent. A greater range of skills and the sharing of responsibilities, which reduces the workload, if I decide to start up as a partnership business.

  2. Impact on Automobile Industry Due To Recession in India

    For instance, current national unemployment rates or consumer confidence and spending levels are all a part of the economic system and must to be taken into account when defining a recession and its attributes. The agency that is officially in charge of declaring a recession in the United States is known as the National Bureau of Economic Research, or NBER.

  1. Marketing Research Report (Shisha)

    Internal Market Environment This section of the Mintel report analysis the environment of the market and how it is affected by the smoking ban. Around 25% of UK adults currently smoke with majority smoking less than 15 a day4.

  2. SunCity - developing marketing strategy for problem

    because the public is influenced by the media more than any other source, this causes a big problem for Sun City. There are many misconceptions regarding sunbeds and people are being deterred by the 'health risks' yes it may be true sunbeds play a role in skin cancer but it has yet to be proven.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work