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Perspective the reasons behind the low price war
2013.6.5 Security Market Report: Samsung, Panasonic, Continental has introduced low-priced cameras, once aroused great concern in the security industry, and even some panic, insiders fear a price war seems uneasiness surfaced. Last year, Hikvision, Dahua DVR DVR dropped so many small-scale manufacturers closed down this year in similar initiatives taken by the camera, so that domestic SMEs feel the doom to fear. In fact, do not have this thing alone produce a lethal price war, at best, is a fuse and Cui agent;
Price war to bring security companies, what is?
From an economic theory, or from the reality, the price war is a double-edged sword, wounding also hurt already. In Western countries, numerous commercial warfare, without exception, proved this point. Why enterprises should carry out price war?
Everything has two sides, the price war is no exception, the advantage is obvious, you can quickly expand sales, increase market share, effective against competitors, the fight is real power, hard effort; shortcomings are glaring, obvious price means corporate profits shrink, the brand damage is flawed, the target market for the brand's reputation and image of the damage. If you continue to intense price war, will enable enterprises to seriously weakened, or even to despair. There is a premise that the price war initiated by a price war companies have considerable strength, is the industry leader, and even the industry giants, not an enterprise can control, she says, moderation is the truth.
Price war causes
Chinese security industry is an emerging industry, started late in 2002 before the security market is now relatively lucrative industry, fewer competitors, a single product and high profits; 2002 to 2007 blowout security companies have mushroomed in the birth of competition, in 2006 ushered in the first round of price war. Overall security industry is not mature, there are many to be perfect, industry associations control power and influence is extremely weak.
Security industry's core technology lies in Japan, Korea and other large multinational companies in the hands of the Chinese rare core technology security companies, if there are mostly marginal technology, so a direct result of the security industry technical threshold is low, the large influx of competitors; technological innovation fatigue, rough production process, the management of the extensive, making security product homogeneity is very serious, the industry is basically without any technical secrets at all, as long as the market new products, within a month almost every enterprise has the.
Less investment in fixed assets security companies to enter the low-cost, high versatility of assets, exit costs low, although the industry into increased costs than a decade ago, but is still relatively not high, resulting in millions of soldiers and erode the security market situation, the competition is intensified, but also adds security industry confusion.
I believe that both the price war or technical war, then war in the security industry or channels are inappropriate. It was suggested to play quality war, humans think so, I believe that God will laugh, these ideas developed during World War II or the marketing concept, the concept disappointing step, action on a mile, and security companies must use modern marketing concepts, rather than guarding the old product concepts and marketing concepts, since all come on the road brand, so why go back.
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