Abstract
Home appliance industry is one of the most competitive industries in China, but the price war also prolonged. The reasons for E-commerce price war of home appliance industry are various; this article attempts to use the game theory and information economics analysis method to discuss the form of competition pattern, and further study the possibility of price coordination behavior in the industry. The analysis to our enlightenment is that, in order to get out of the price war trap, and improve the industry competition level, home appliance enterprises must pay more attention to technology and product innovation. At the same time, E-commerce should be rational to marketing strategy; it could avoid market competition environment destruction, and loss of consumer confidence caused by excessive price war in the adverse consequences.
Highlights
On August 14, 2012, Liu Dongqiang, the CEO of Jingdong company, posted news in Weibo, and other senior managers including Suning, Gome responded this Weibo
It still made home appliance industry hard to get out “price war trap”: repetitive price war continued for a long time making all industry manufacturers actively or passively involved, so that the industry were in excessive competition situation [1]
Based on the above discussion, we will explore the form of E-commerce price war and how to make home appliances industry to get rid of the plight of the price war trap, which uses game theory and information economics
Summary
On August 14, 2012, Liu Dongqiang, the CEO of Jingdong company, posted news in Weibo, and other senior managers including Suning, Gome responded this Weibo. Tang ous reasons, it still made home appliance industry hard to get out “price war trap”: repetitive price war continued for a long time making all industry manufacturers actively or passively involved, so that the industry were in excessive competition situation [1]. Based on the above discussion, we will explore the form of E-commerce price war and how to make home appliances industry to get rid of the plight of the price war trap, which uses game theory and information economics. The analysis to our enlightenment is that, in order to get out of the price war trap, and improve the industry competition level, home appliance enterprises must pay more attention to technology and product innovation
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