• 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. Marketing Research

    If we understand what sampling plan is all about, it is important to understand the difference between census and sample 6.1 CENSUS V/S SAMPLE IT IS POSSIBLE TO DO CENSUS IF THE POPULATION SIZE IS SMALL. FOE E.G , IF THERE ARE 200 SOLAR COOOKER OWNERS IN A TOWN, IT

  2. GLOBAL STEEL INDUSTRY DEVELOPMENT

    Act, 1951, (b) deregulation of price and distribution of iron & steel, (c) inclusion of iron and steel industry in the list of high priority industries for automatic approval for foreign equity investments up to 51%.

  1. Applied Business Studies

    If they go bankrupt they will all have to pay the creditors. * Shared decision making - the decision making is the same as shared liability, it's not up to one person, but the whole business will have to make the decision and think of what to do.

  2. Business Enterprise unit 5

    to clean and wash their own cars so therefore my service will be great beneficial to them. In addition an extra way of generateing income for my car wash buisness is buy selling accessories such as car mats, shampoos, T-cut and air freshener's, which I will do to generate extra

  1. Business Studies Company Profile

    * Meeting stakeholder's needs. This is where businesses consider the needs of the different people involved in the business. For example, a business might aim to repay bank loans on time, pay its employees a decent wage, keep customers satisfied and pay suppliers on time.

  2. 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.

  1. Impact on Automobile Industry Due To Recession in India

    They define a recession as the time when business activity has reached its peak and starts to fall until the time when business activity bottoms out. When the business activity starts to rise again it is called an expansionary period. By this definition, the average recession lasts about a year.

  2. This is a report on the international dimension of Costa Coffee and Coffee Aroma.

    of multiple groups such as facility maintenance, direct operations (servers, housekeepers, porters, kitchen workers, bartenders, etc.), management, marketing, and human resources. The hospitality industry covers a wide range of organizations offering food service and accommodation. The industry is divided into sectors according to the skill-sets required for the work involved.

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