The Research On Price War And Cartel In China’s Color TV Industry

With the deepening of China’s market-oriented reform, the price war was repeatedbetween enterprises become all walks of life play. China since the1990s volume offrequent price war. Typical volume of price war and price alliance has attracted widespreadattention. People started from the product difference, industry life cycle, marketconcentration, the manufacturer’s production scale and entry and exit barriers, enterprisemarket forces such as different angles to analyze the cause of the price war. What is a pricewar? Price wars, refers to the enterprises for their own survival and development about theprice level of extraordinary market competition behavior. Competition is the essentialattribute of market economy, price competition is the most important way of marketcompetition among operators and means.At first, this paper will be competing on price based on the theory of price alliance isintroduced since the late1980s China’s color TV industry price wars and price alliance.Secondly in combination with China’s color TV industry system background under thepremise of the industry under the condition of price alliance theory model is set up, and byusing the model based on the analysis of home appliance industry data to verify thebehavior of the electrical appliances industry. Drawing on and assimilating combined theresearch achievements of predecessors. This paper established the home appliance industryprice alliance theory model is based on Green-Porter model, this model is in thehomogeneous products and single phase of the game on the basis of research about internalstability and external stability conditions for conspiracy group. On the basis of productdifferentiation, price war and conspiracy "empirical method of combining the theoryresearch and experience. Specifically, in this paper, the background of China’s color TVindustry system under the premise of the industry under the condition of price alliancetheory model is set up, and by using the model analysis of home appliance industry.At first, this paper will be competing on price based on the theory of price alliance isintroduced since the late1980s China’s color TV industry price wars and price alliance.Second in combination with China’s color TV industry system background under thepremise of the industry under the condition of price alliance theory model is set up, the fulltext is divided into five chapters. The first chapter of this thesis research background andsignificance, the research on the related literature both at home and abroad, and summarizesthe significance of the topic of research, research methods and ideas of this article isdiscussed. The second chapter discusses the Chinese color TV industry price alliance andfrequent outbreak of price war industry background. This chapter first describes the overall development situation of China’s color TV industry, and summarizes the Chinese color TVindustry price war with the condition of price alliance. The third chapter presents the basictheory of general cartel. This chapter expounds the cause of price cartel, instability of pricecartel, and analysis from the Angle of conspiring to repeat function price cartel. The fourthchapter is given based on the Chinese color TV industry price wars and model analysis ofprice alliance. This chapter first from two angles of products homogeneity and productdifferentiation overview about price war with the classic model of price alliance, and thenaccording to the Chinese color TV industry background, on the basis of classical model tobuild a suitable model, from the perspective of product differentiation, price war andconspiracy, to study the cause of the Chinese color TV industry price war broke out. Thefifth chapter is conclusion and policy recommendations. First of all, from the perspective ofproduct differentiation in this chapter are conspiring to break one of the reasons, namelyproduct differentiation degree of the influence of color TV price war broke out. Secondlybased on current situation of development of color TV industry in China, give the relevantpolicy recommendations. Enterprise should through the independent technical innovation toexpand the product difference degree, and thus to consciously avoid price competitionbrought about by the industrial conflicts, this may be the right strategy to avoid price war.Enterprises should be supported by the core technology development, and constantlyintroduce new products or high-end products, upgrading of products to distract consumerson the price. Enterprise to increase core key technology research and development, thetechnical ability, on the basis of empirically, by means of vertical differences intocontinuously by introducing high-grade new products, the formation of high and low gradeof the product in the consumers’ mind sequence, stimulate consumer pursuit of higherquality products.