彩电价格战(英文版)

1、Price War on Color TV Industries青岛科技大学 英语103班.Definition of Price WarPrice war is a term used in the economic sector to indicate a state of intense competitive rivalry accompanied by a multi-lateral series of price reductions. One competitor will lower its price, then others will lower their prices

2、to match. If one of them reduces their price again, a new round of reductions starts. .General Introduction of the Chinas Color TV IndustriesThe Chinese TV industry has experienced a high developing process by bringing in the first color TV product line since 1979, and its production has kept a grow

3、ing speed over 20% annually. Chinese TV industry has established a specific production-manufacturing system for its 30 years development. The production efficiency and production cost has been a high level around the world and become one of Chinese industries which can compete with international ent

4、erprises. Chinese color TV industry then blossomed out into some enterprise groups which are dominating the market, well-known and with high-level management, such as Hisense, Chang Hong, Konka and Skyworth.The Development of The TV Industries1958 1978 1985 1989 1995 2000 nowblack and white TV set I

5、ntroduction stageFluctuation stage动摇期Steady growthAdjustment and gradually mature stage 1996-2021 年中国彩电产销量 .Six Major Price war1、The first time of it. In the early of 1989, government imposed the tax on consumption for TV industry, which made a depressed atmosphere in TV industry, causing color TV p

6、roduction overstocked and a shortage of funds. Chang Hong made a step that they made every color TV sold at a reduced priced of 350 yuan since August 9th. This was the first reduced price for color TV, and Chang Hong became the only winner in the campaign.2、The second time of it. On March 26th 1996,

7、 Chang Hong color TV first reduced its TV price at 30% on a national scale, which brought a shock to the color TV industry. From that time on, consumers were not unreasonable any more and our civil brand then dominated the market again. 3、The third time of it. In 1997, Gao Lu Hua made a push of low

8、priced TV, forcing almost all brands to reduce their price at 15% to 25% and sell low priced production. Besides Gao lu hua, their purpose of reducing price was to force most of enterprises to reduce their profit which should be more reasonable, rather than take over the market. However, the market

9、share of Gao hasnt been over 5%. .4、The fourth time of it. In June of 1998, TCL and Konca reduced their price from 500 to 1000 yuan as a special sale. While the color TV industry gained less 5.2 billion yuan due to reducing price, which brought a bad influence on the financial accumulation and techn

10、ical progress in color TV industry.5、第五次，1999年4月19日，又一次大降价。面对挑战，长虹集团1998年秋季利用其雄厚的资金实力大量收买彩管。1999年4月，长虹在南京又一次首先降价，据称幅度在1020，随后康佳、TCL、创维等几乎全部国内品牌纷纷表示降价。从短期的表现来看，长虹的市场占有率在上升，国外品牌市场份额也增长11个百分点。Reducing again. 6、 第六次，2000年8月11日，第六次彩电价钱大战迸发。2000年6月9日彩电巨头结合推出彩电价钱联盟，但这不但没有阻止彩电价钱的进一步下滑，反而演绎了一场极富戏剧性的彩电价钱蹦极跳。第

11、一波蹦极，以特价机为主打种类，其特点是商业资本的参与。第二波蹦极，以8月12日长虹、康佳、熊猫等大幅降价为标志。.There PeriodsPeriod 1Period 2Period 3Before 1990Competition degree is relatively moderate )From the early 90s to before and after 1997(using price competition to achieve industry survival of the fittest )After 1997 (oversupply).The Reason:1、Th

12、e economic structure formed under the plan economy makes the price war be inevitable. Enterprise dimensions slants small, low level of technology, innovation and RD ability inadequacy. Under the condition of market economy, the seller implements the price war to maintain market share.2、Multi-Nationa

13、l Corporations use their brand、technology、capital and marketing experience advantages, and consumers western-worship psychological to lift a promotion wave in many big cities.3、Price war is the inevitable result of market mechanism play a role. Enterprises with strong sense of competitive, the advan

14、tages of dimensions and technology can reduce costs. And then they can eliminate the small scale, high cost of enterprises by using the price war.4、Under the socialist market economic system, enterprises launched a price war, in actually, its the economic law on the rectification of distorted price

15、history, is to return the value of the actual product.5、The unconspicuous difference in product is another important reason that caused price war. As a result of industry of our country color television production line is almost introduced, therefore, different enterprises technical standards have g

16、reat similarities. This homogenization phenomenon in the enterprises leads to that enterprises are difficult to form the market structure of monopolistic competition. Price has become the important criterion for consumers to purchase products. It leads to the new round of price war when enterprises

17、try to take over market.( See chart analysis)6、Most of businesses focus on short-term interests, especially distributor loyalty towards the company is extremely low, so they are accustomed to transform the promotional benefits into price advantage to develop the market competing that played an impor

18、tant role on the price war in a certain extent.7、Color TV as a kind of elastic goods is suitable for the traditional puerile principle, and its the root of price war of trade.( See chart analysis).The Influence:According to customers point of view, the prices of color TVs come down, reduces consumer

19、s spending. It suggests that consumers can buy more color TV under the same income condition, expanding the demand, and it can make more low-income families to enjoy the welfare of consume TVs. For high-income class, they can afford the higher commodity prices, so the color television price elastici

20、ty is relatively small. But for the majority of low-income families and rural consumers, the high price of color television will make them step back.For the color TV production enterprises, the prices of color TVs come down will make enterprise incur a loss, reduce the profits in surface. However ap

21、propriate price lower is useful to start the marketing, we must admit that its useful to enterprises.From the social point of view, in order to realize the maximization of social benefit. Government must keep the social economic life in normal operation, to keep the balance between supply and demand

22、 in market. It means that all producers of manufactured goods can be based on the current price clearing, and all are willing to purchase price buyers can meet their demand.Positive Impact 1、Its useful to realize the survival of the fittest through “price war. We can eliminate some extensive and ine

23、fficient enterprises in the price war, its one of the effective ways to achieve the optimal allocation of social resources.2、Improve the economies of scale of household electrical appliance enterprises through the price war. The large-scale production can produce economies of scale, lower production

24、 costs per unit of product which has a great contribution to Chinas household electrical appliance enterprises to reduce the price of the product.3、Through Price war to expand the size of the home appliance market.Negative Impact:price war weakens the ability of the accumulation of household electri

25、cal appliance enterprises. They are detrimental to the innovation, to interfere with development potential.Price war easily leads to rivals follow suit, leading to a vicious competition, disrupt trade order.Price war makes part of the home appliance product quality and after-sales service be difficu

26、lt to get guarantee and it may damage the interests of customers.The frequent price-cutting, will destroy the brand image of the product.Two Examples:VS.After 1996, because of the wrong strategic options Changhong adopted- to compete by monopolize the teletube(电视显像管) instead of innovate the new prod

27、ucts- it was exhausted to dealing with the price war. So Changhong began to go downhill.Skyworth is the only private enterprise among those Color TV giants. During the price war, its bad management made it swing in the market at that time. But since Skyworth has adhered to the technological innovati

28、on as enterprise constantly progress eternal power, Skyworther(创维人，纯属自造) paid arduous efforts, After a development of 24 years, Skyworth has grown to be one of the top ten color TV brands in the world and a top brand in Chinas display industry and was ranked 14th among the top 100 electronics China.

29、 Skyworth.Evolution forecast of Color TV IndustriesLED (Light Emitting Diode发光二级管) goes faster, it will take over LCDliquid crystal display液晶显示屏 and become the most popular in the market in recent years. 3D picture tube begins to blossom, 3D TV has been put into the market.SmartTV is the hot spot in

30、 the high-end market. It become a popularity.网交融给互联网电视的开展铺平了道路 The revitalization and development of Chinas ITV(网络电视) depends upon the advance of integrating the three networks into one. It means to converge(交融) the telecommunication电信网, Internet and broadcasting networks广播电视网 into one complete syst

31、em。.In 2021, the Chinese government launched village appliance家电下乡 schemes nationwide, with subsidies used to increase sales of televisions, refrigerators, washing machines and mobile phones in rural areas. And there will be further expand the scale. .Along with the LCD panel(面板) production line put

32、 into production in succession, the color TV market will face panel excess. This will greatly reduce the cost of color TV, the color TV market more competitive, the price war would break out again.TV Industries future development route: From price competition to non-price competition Non-price compe

33、tition is a marketing strategy in which one firm tries to distinguish its product or service from competing products on the basis of attributes like design and workmanship. The firm can also distinguish its product offering through quality of service, extensive distribution, customer focus, or any o

34、ther sustainable competitive advantage other than price. It can be contrasted with price competition, which is where a company tries to distinguish its product or service from competing products on the basis of low price. Non-price competition typically involves promotional expenditures (such as adv

35、ertising, selling staff, the locations convenience, sales promotions, coupons, special orders, or free gifts), marketing research, new product development, and brand management costs. Firms will engage in non-price competition, in spite of the additional costs involved, because it is usually more pr

36、ofitable than selling for a lower price, and avoids the risk of a price war. Although any company can use a non-price competition strategy, it is most common among oligopolies and monopolistic competition, because firms can be extremely competitive.price competition VS non-price competitionConstantl

37、y price reduction caused the enterprise and the consumer malignant interactive cycle (恶性互动循环The non-price competition promotes the development of enterprises .Countermeasures详细对策Differentiation competitive strategy差别化竞争战略 Product Differentiation. Through the product innovation, reforming the product

38、 value, get rid of product homogeneity(同质性).The main method is: to adopt the new technology, to improve the quality of the products, performance, packaging and appearance style, etc.Services Differentiation. In addition to quality and price of outside factors, service demand is also determines the c

39、onsumer buying and consumption.Brand Differentiation. Consumers are often attracted by the value of brands bring, and ignore the price. And there are a lot of commodity consumer cannot judge its quality (household appliances is difficult to judge the quality by the appearance or materials), famous b

40、rand goods have high market affirmation, so it can effectively avoid the price war.Concentrated Competitive Strategy集中性竞争战略To concentrate on one or a few market segment, which can obtain cost lead, also get difference business income. The Enterprises must according to subdivided(细分的) market, consider the characteristics of the competitors, combine yo