Study Of The Causes And Impact Of China's Market Price War

Since the price wars which were caused by Changhong's first price reduction in Chinese television industry in 1989, price war has always been the main stream of the rivalry and evolution of television manufacture sector. Meanwhile, price wars become increasingly fierce expanding to a wider range from television to household appliances, telecom, pharmacy, and automotive, etc. There were a series of viewpoints followed. Why do price wars occur? Are they favorable or detrimental? Should they be encouraged or refrained? These issues have been the arguments on which enterprises, governments, consumers, and academies were focusing. There are several branches of arguments among different groups; also firms have a variety of utilities of price war instrument. How to take a scientific insight into the phenomena of price wars and how to perceive the influences caused by price wars objectively, which have an important impact on how to employ adaptable measures of price wars reasonably to improve the competences for firms, whether we could establish more international leading-brand companies, and whether the market-oriented economy could lead a healthy life of development onwards.The research sense of this dissertation aims to help firms perceive the reasons of the occurrence of price wars accurately and to take an objective look on the impact of price wars. Based on that, firms are supposed to design reasonable and effective competitive strategies, as a result, gain successive improvements on corporate competitiveness. As a more extensive range as is concerned, it aims to optimize market resources deployment, establish reputable enterprises, improve the overall competitive capabilities of firms, and accelerate the ongoing development of the market-oriented economy. The research methodologies employed are the combination of theories and realities, a mutual support between demonstration and criterion, principles and case studies responding to each other. It takes an overall analysis and study on the reasons and influences of the price wars in China.Firstly, the dissertation makes a brief statement on the history of price wars and relevant theories in China, and research trends on both domestic and foreign basis. Secondly, based on the integration of current research outcome and combined with the writer's perception, it utilize the methods of the combination of theoretical analysis and evidence to analyze the reasons of the occurrence of price wars in terms of...