From the perspective of industry development, competition is inevitable, and vicious competition is equally inevitable. The reason why an industry can be formed is because it is profitable to do this. As long as it is profitable, more companies will enter, and eventually supply will exceed demand. The result of oversupply is that losses will begin, and no one will If you are willing to lose money and quit, then everyone will do everything possible to survive and develop.
The competition at this stage is a life-and-death competition. Survival of the fittest, big waves wash away the sand, and many companies will be expelled. Therefore, the competition at this stage will be extremely fierce, and the competition methods will be all kinds of vicious competition. Just appeared.
Vicious competition usually starts with a price war, because price leverage is the most effective means of leveraging the market. The end result of price competition is that companies without cost advantages will be eliminated, because the average retail price of the industry is lower than their cost price. These companies are not willing to surrender and give up the market, so they have to fight to the death and start cutting corners and resisting. They were deceived and set up consumption traps, and the credibility of the entire industry was ruined.
Companies that really cannot persist will withdraw from the market one after another, gradually returning to the past situation of supply exceeding demand. Companies that persist will finally return to profitability. The industry has been purified in this round of competition and is moving towards mature, healthy and rational development.
Competition is inevitable. When vicious competition occurs, we have no way to withdraw from the market. There is no escape but active participation. Although too many hunters in the forest lead to competition, it is even more meaningless to hunt in places where there are no prey. There is no competition because there is no demand. If there is demand, there will be competition.
Entrepreneurs must be mentally prepared to face vicious competition and face challenges bravely. Once the vicious competition in the industry appears, if you want to persist until the final victory, the only correct way is to operate at a low profit. If necessary, make a profit at a loss at any cost. Stand up bravely to expose the inside story of the industry, safeguard the interests of target customers, and win over them. My understanding, sympathy and help to you.
In particular, exposing the inside story of the industry can speed up the elimination of unscrupulous businesses and enable the industry to be purified as soon as possible. After the storm, the surviving companies will quickly enter a healthy development track and have the opportunity to embrace beauty again. future.