Monday, September 27, 2010

How to avoid price war



While many manufacturers do down their opponents in the sea of blood, exhaustion, and wise men self-reflection, came last in the end is the ultimate corporate PK, or a win-win situation, how to escape from the "price war" cycle, a breakthrough price of tight encirclement. Want to really make businesses profitable, low competition out of the vortex, really need to rethink. To avoid price war, to build their core competitiveness, advance the field of free competition.

Product homogeneity will undoubtedly bring endless price war, in order to survive, we have only engaged the crowd out competitors, but these are not long-term strategy, a vicious price war will drag profits edge business, enterprise to survive, must be driven out of price wars. Re-examine themselves, their own characteristics, clear positioning, zoom advantages intensive, team momentum.

First, a clear positioning

Marketing activities carried out by the first step to pinpoint their own position. A master at the next to locate anything so a definition: the head was left a hair pull, in the wind. Some dramatic composition, but it is the image of the state of orientation. Accurate positioning or not, it will determine whether a business to avoid price war.

For example: to determine to go ERP UF supermarket type; Kingdee personalized leadership to determine the road; Newgrand identified as a leader in the financial system. These are based on their market attention and confidence.

Second, amplification advantage

Advantage is not naturally occurring, compared with competitors and reflect, and advantages of the sharp weapons we ahead of the competition. To the real advantage, beyond the competition, you need to find each other enough to find their own strengths, from the product, quality, service, technology, brand, etc. to start, can not go beyond to create their own strengths. POLO is to use this, just out of price wars.

After his position with accurate, then we should strive to find their own advantage. Advantage is that customers demand, while competitors can not or do not you do good; advantage is that you and other people are different; advantage is that the distinctive features of the project itself, this is the advantage.

Every person, every thing, including marketing activities, will be there own advantages. Found advantages for the marketing activity itself is necessary. In the appliance industry and the central air-conditioning industry, we believe that Haier's service is good, this is the advantage, but the relative costs lead to higher prices, normal, customers generally acceptable.

Recently the price of cars circle is day of war, but through the "hot" in the April car market, the Shanghai Volkswagen POLO able to have been sold so far, and the current automobile market is somewhat flat --- almost all the cars out of tune type have been involved in the trend of lower prices, but not lower prices but also POLO selling? really is Faith!

Shanghai Volkswagen has shown continued growth potential is even reflected in the products of digestion and the ability to adapt to the Chinese market very strong. Depend on familiarity with the Chinese market as well as deep understanding of the old Passat and the introduction of the early stages of product is not successful product POLO upgrade introducing the Passat and the lead Yu Jin situation POLO, POLO AccFast, making the two series of product sales continued to rise.

Third, intensive

When a company already has a clear position, and have been digging out of their advantage, then, are we how to do? Any one sectors, there are numerous market segments, and the product's quality and technical improvement indefinitely. To gain a firm foothold in this industry, and seek a place, we must in this industry the best at doing the best to improve.

Paul Yeung, general manager of TCL Computer is a perfectionist, he has been advocating "no creativity, no personality," how to do a thing to be the best, so that the perfect is his own request, is also on the team's requirements . "I often say a word, the devil is in the details, the angels in the details. I ask for the details, we can not through a point, digging in, deeper and deeper. Is relying on faith to do the best, he was leading TCL's computer company in the PC market has its own piece of heaven and earth.

In 2004, TCL digital business unit's performance of the industry, "admiration", compared to 2003 sales, up 18.1%, sales profit rose 90.5%, which, TCL desktop sales grew by 48.56% profit grew by 153.8 percent year on year. (Globrand.com) following the sharp 2003, Cheung PC audio and video A, 2004 骞?pirate PC games, this year in April, TCL "third generation" personalized PC - Female PC "SHE" released so far, the model has sold 15,000 units, just over a month time, women accounted for sales of TCL PC home computer sales over the same period about 25%.

Fourth, the team momentum

Today's shopping expedition, the personal heroism of triumphant era is over, can not be won by individuals going it alone has the right to market and run-off, only through the strength of the team to improve the overall competitiveness of enterprises, only you The team is better than another to form a competitive advantage, the team's power play has become a must-win victory in terms of future competition.

For businesses, a good team does that mean? A good team, can the noble enterprise into the realm of sustainability; be able to better achieve business objectives of the operation; may be able to better reach customers satisfaction.

Haier's team is excellent, the story of an ordinary moving: April 5, 1999 two in the afternoon, a German distributor called wanting "to be shipped in two days, otherwise the order automatically lapse." Which means that the afternoon two days to be shipped the goods to be shipped, but now it is Friday afternoon, two, if by customs, commodity inspection and other relevant departments to calculate work 17:00, then for only three hours, while the normal procedure to do all this almost impossible. How do the impossible possible, at this time were a good team spirit Haier showed great energy, they go hand in hand to the way transfer goods transshipment, customs declaration, contact the links shipment schedules, all threw himself into to work, pay close attention to every minute, so that each link passed. 17:30 the same day, the dealer received from the Haier "goods issue" of the message, he was very surprised, shocked and then to appreciate, also broke the "10 years" in case of write a letter of gratitude to Haier.







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