Price-War In Colored TV Line

From the origin of price-war, this paper firstly illustrates that the nature of price-war is the extrinsic performance of cost advantage, and is no different with distinct strategy or aim-focused strategy. Furthermore, this paper points out there are two basic goals of price-war. One is to catch larger share of the market ; the other is to hoist the centralization level of given line.After shown two faces of the "coin", we try to draw a conclusion about the price-war.By the means of property relationship theory , supply-demand theory and the proxy theory, this paper gives a explanation about the reasons of price-war phenomenon, and then ,however, carries game theory into price-war and price-alliance. In colored TV line, owing to the dynamic game effect , the lower the price, the lower the margin, companied with the homogenization similarity products. At last the equilibrium has been reached (that is the famous MC=MR). In addition, no-thorough system of supervision, management and motivation in national companies plus the emotional deeds leads to the loss of colored TV line.This paper analyses the new forms of price-war in OEM and diversify .OEM is just a mean to release the oversupply situation; diversification will increase the risk rather than reduce the risk eventually.At last, with the helpful SWOT matrix, we find out the main defects of colored TV line lay on the lack of key-tech, no-thorough net of market and service, lack of competition ability of brand. on the basis of analysis, we put forward a new strategy, which is to raise the core competition competence, low the cost, implement our product innovation, intensify our market, service and brand construction, breakthrough key- tech bottleneck and join the global competition to get rid of the only lever of price-war strategy.As we all know. Price-war in colored TV line is just a reflect of our entire electric appliance production. Deeper analysis and countermeasure will benefit not only our colored TV line out of the jam , but also transfer our whole line into the healthy track.