The Research On Strategy Of Pricing For Products Of Industrial Ethernet Switch

The price is an important decision variable of business competition in the market economy.In theory, enterprises in pursuit of the product profit maximization following to the simple pricing principle that marginal cost is equal to marginal revenue.Enterprises must comprehensively consider the cost, competition, environment and other factors in the actual pricing process. These factors of uncertainty result in complicated product pricing.Industrial Ethernet switches are industrial communication products different from ordinary commercial Ethernet switches, and in the growth stage of the product life cycle. The product pricing is usually taken as the game means of enterprises in the market but is a practical problem not completely solved.From the start of the market supply and demand and elasticity theory, this paper studies the price mechanism of complete competition market, complete monopoly market and monopolistic competition market,and the pricing theory based on the profit of product cost.Through the real data collection,the profit level of industry, the market supply and demand condition, the market share and other indicators,analyzes the market characteristics and market structure of industrial Ethernet switch industry.Through the case study of the mainstream supply in domestic manufacturers of industrial Ethernet switches-Beijing Kyland Technology Co., Ltd,summarizes the problems of general, blind, random and the lack of flexibility in the pricing system.Further analyzes the major factors which influence the product price of industrial Ethernet switches, such as product technology, life cycle, the buyer's ability of bargaining, as well as the awareness of products, the affecting of competitors and other factors.Through the careful analysis, develops pricing goals suited to different market features for different products of switch enterprises,such as the goals of profit, maintaining survival,sales,market share and price stability.Finally,according to the new products of market introduction stage, the mature products of the market growth stage,and the low-end switch products of market recession,which are used in different markets, pricing models are respectively set up and made the validation of applicability in different competitive markets and the case enterprises.The innovation of this paper is that the life cycle of product of industrial Ethernet switches is reasonably divided into different stages-introduction, growth and recession. The different pricing model is developed to the product of industrial Ethernet switches in different stages,and made amendments with varying degrees according to the nature of purchaser.This paper adopts the research methods combined with theory and practice, enumerates the data and specific cases, put forward the pricing methods and models for switch products through the use of macro and micro economics, Industrial Economics,management, marketing, statistics, econometrics and other theories and viewpoints. These pricing methods and models as an independent study have some guiding significances to product pricing for enterprises engaged in the production of switch.