Price War Research Articles

Nilai Budaya Kearifan Lokal Tri Hita Karana Dalam Penentuan Harga Jual (Studi Etnometodologi Pada Pedagang Buah-Buahan Pasar Banyuasri

Abstract: The study of accounting practices in local wisdom is always interesting to research. Understanding that every activity requires accounting, based on a version that is appropriate to the culture and beliefs of the local community. Pricing is used as a bridge by sellers to achieve maximum material profits by keeping costs as low as possible. As a result, price wars are a familiar sight today. There is no longer any togetherness and brotherhood among the sellers from the sales activities carried out. The aim of this research is to reveal the cultural values of local wisdom contained in determining the selling price of fruit, which is implemented by Banyuasri Market traders based on the local wisdom values of Tri Hita Karana. Data analysis uses the hermeneutic analysis method of intentionalism. Based on the findings in this research, the reality of selling prices implemented by fruit traders at Banyuasri Market depicts a complete form of selling price and is based on the values of the Tri Hita Karana philosophy. The elements of material values (not wealth), the value of submission to the Creator, the value of environmental preservation, and the value of togetherness between fellow humans or traders are a unified whole that cannot be separated.

Service System Innovation and Competitiveness In an Emerging Market: The Moderating Role of Managerial Competencies

This study empirically examines the correlation between service system innovation and competitiveness in Nigeria, an emerging market, by focusing on the country’s mobile telecommunications sector. The moderating effect of managerial competencies was also tested. Due to the contribution of the telecommunications sector to the economic well-being of Nigeria and the world’s economy at large, the sector witnesses a high level of competition among its players, resulting in unsustainable price wars, negatively impacting the telecommunication firms and their ability to invest in service improvements. Thus, there is a need for a study into the factors affecting competitiveness in the telecommunications sector. A cross sectional survey was used because the study explored the relationships between service system innovation, managerial competencies and competitiveness. The study used a survey instrument, which was sent to 450 respondents using Google Forms, out of which 230 responded. The 230 returned copies represented a 51.1 percent return rate, which satisfied the minimum required return rate for a cross sectional study. The study’s hypotheses were tested using the partial least squares structural equation model (PLS-SEM). The finding revealed that service system innovation (idea development, service development and commercialization) enhances the competitiveness of mobile telecommunication firms. Thus, an increase in idea development, service development and commercialization is essential for a competitive advantage. Also, managerial competencies were found to significantly moderate the relationship between service system innovation and competitiveness. The study provides a new insight into how service system innovation affects the competitiveness of telecommunications companies, particularly in emerging markets, with Nigeria as the focal point. It also shows the role managerial competencies play in the telecommunications sector. This study offers proof of the traits of service system innovation, managerial competencies, and competitiveness in the telecommunications sector. It also developed and tested a scale for measuring these variables, which future studies could adopt.

Sam’s Club Current Situation Analysis and Recommendation in China

With the development of China’s economy, retail and warehousing have a very objective market. As Sam’s club, which has been deeply engaged in China for many years, this will be a good opportunity. However, competition in China’s retail market is still fierce. Today, China’s local retail enterprises have fired the first shot in the price war against Sam. This paper uses economic knowledge to analyze the market situation of Sam’s club in China, including but not limited to swot, pestle and market positioning analysis. Through the analysis of economics, this paper clarifies the advantages and disadvantages of Sam in the principality market. In addition, it also clearly pointed out the challenges and opportunities faced by Sam’s Club in China. In the case that competitors have started to compete in the price war, this paper gives suggestions that are more in line with China’s national conditions. This will greatly help Sam’s Club to understand China’s national conditions and develop new market strategies.

국제물류주선업의 혁신요인과 혁신이 성과에 미치는 영향

Due to changes in needs of customers, business environment, and technological developments, the scope of Freight Forwarder services has expanded with the increased complexity. Expanded service scop of freight forwarder plays key role in increasing customer satisfaction and loyalty by providing comprehensive logistics services from global supply chain management, value-added services, information and consulting. However, domestic companies are meeting with cutthroat competition for the price rather than improving the quality of services. Consequentially, competitiveness in the international arena is weakening by only focusing on a price war. Domestic logistics companies should break away from this hyper competition on price. Instead, concentrating on creating customer value to secure a competitive edge beyond the traditional role of transportation in the new economic market, and innovation would be essential. Regardless of high necessity for in-depth research on this, there are not many innovation studies on the domestic Freight Forwarder yet. In this study, Innovation type had been sorted into service and management. This division is focusing on the nature of logistics industry with seeing uncertainty of technology, the characteristics of CEOs, information system of the logistics, and personal traits as the factors which influencing to innovation in freight forwarding. Logistics performance was classified into efficiency and effectiveness, and corporate performance was measured as financial performance. Research result was proved that innovation factors have positive effects on both service and management revolutionization. Also on the efficiency and effectiveness of logistics. In addition, it was demonstrated that efficiency and effectiveness, which are logistics performance, have a positive effect on a company's financial performance.

The pricing strategies behind New Energy Vehicles price war: Taking Tesla and XPeng as examples

With the acceleration of the new energy vehicle industry, many automobile companies have entered the market and formed a competitive situation. Tesla, as the leader of the initial producer of energy storage equipment and new energy vehicles, further lowered the price at the beginning of the year and had a great impact on the price war of new energy vehicles. XPeng, an AI+Internet-based intelligent car manufacturer, followed Tesla’s pace in the price war. However, it can be found that XPeng’s revenue level is not up to expectations after the price reduction, while Tesla’s sales are increasing annually and its market share occupies the forefront. Therefore, the success of Tesla and the pricing strategy factors behind it can help XPeng, an emerging domestic automobile brand, find the current bottleneck and provide an important reference value for future development. This paper analyzes the development status of Tesla and XPeng and three factors affecting prices through case comparison. The study found that Tesla and XPeng differ in managerial decisions and production factors. XPeng has higher supply chain costs, no emerging battery technology, limited brand positioning, and insufficient demand. Hence, changes need to be made to enhance XPeng’s competitiveness.

Impact Analysis of Price War on the New Energy Automobile Industry Based on BYD and GWM

The price war that broke out in March in the first half of this year just ended in July. This is a knockout competition for auto companies, and companies that win the price war can take the lead in the market in the next few years. It turned out that BYD won the price war, while Great Wall Motors semi-annual performance dropped sharply. This article analyzes the strategies of BYD and Great Wall Motors in the price war and explores the various measures that new energy car companies should take in the price war. In-depth comparison of the data of the two companies, through data comparison, data analysis and event analysis, a relatively comprehensive analysis of the sales, financial and stock market transaction data of the two companies was carried out to explore the results of the price war. This article focuses on the impact of price wars on car companies and explores what strategies new energy car companies should adopt in the future.

A co‐opetitive game analysis of platform compatibility strategies under add‐on services

Large‐scale platforms (LSPs) with valuation and awareness advantages have enabled competing small‐scale platforms (SSPs) to be embedded in their platforms. This compatibility strategy creates a new channel, that is, the compatible channel, through which customers can purchase services from SSPs via the LSPs. Additionally, numerous platforms have been introducing add‐on services to enhance their profitability. In this study, we develop stylized game models to characterize the interaction between an LSP and an SSP and explore their strategic and operational decisions on platform compatibility under add‐on services. Our major research findings are as follows: First, compatibility has opposite impacts on service pricing. That is, at a low proportion of demand through the compatible channel, the two platforms engage in a price war; otherwise, they both raise prices. Second, we identify the conditions for platform compatibility: Compatibility becomes an equilibrium strategy if the proportion of demand through the compatible channel falls within an intermediate range. Third, we find that homogeneous add‐on services stimulate rather than inhibit compatibility due to the different profit foci of two platforms. Finally, we conduct extensions to further verify the robustness of the conclusions. Our results provide important implications to the burgeoning debate on when platforms should implement compatibility to achieve a win–win scenario under a variety of settings.

Analysis of global brands’ green procurement strategy: Co-opetitive local sourcing vs. overseas sourcing under delivery disruption

Recently, black swan events, such as the Covid-19 pandemic and the Russia-Ukraine war, have caused disruptions for the local brand with overseas procurement (BOP) who traditionally purchase remanufactured components globally. This induces the BOP to find a local alternative supplier, although the remanufactured components without supply disruption can be of high price, and the local supplier has a self-branded business. In this paper, we consider a BOP's strategic sourcing decisions from a local supplier with self-branded end products (LSP) who sells remanufactured components. We focus on the BOP's incentives toward such a “co-opetitive” relationship and the LSP's willingness to sell remanufactured components to the BOP. We find that having two suppliers may induce a component price war but the component price will not become too low when the probability of overseas supply disruption is high. Interestingly, we find that the BOP will allocate a low proportion of component purchasing orders to the LSP when it faces a high probability of overseas supply disruption. In contrast, the LSP has the incentive to sell remanufactured components to the BOP when the probability of overseas supply disruption is in a moderate range. If the BOP's remanufactured component quality requirement is high, or the probability of overseas supply disruption is low, the LSP might even have a profit loss when selling components to the BOP.

Research on Price War of Payment Platform based on Repeated Game-Taking Alipay and Wechat as Examples

Price war is an inevitable product of the market economy and is an important mean of stimulating market development. The development of the Internet financial market has brought about a new era of universal mobile payments. The price war between the two mobile payment giants - Alipay and WeChat - in this new era is of particular concern. As the battle between the two platforms gradually enters a white-hot stage, how they act to maximize their own interests has become a major focus of the Internet financial market. This paper explores the price war between these two payment platforms from the perspective of repeated games and makes preliminary assumptions based on the Bertrand model. Based on the findings and the context of the times, this paper suggests strategies for the development of both Alipay and WeChat which are aiming to promote the mobile payment platforms towards healthy competition in order to achieve a mutually beneficial and win-win market.

A Critical Review of NIO’s Business Model

The present study reports a critical review of NIO′s business model considering the evolving landscape of the electric vehicle market and servicing. The objective of this study is to develop a comprehensive framework that facilitates the identification of key elements characterizing a company’s business model and highlights ongoing transformations crucial for adaptation and survival in a rapidly changing environmental context. Focusing on the case study of NIO, a relatively young Chinese original equipment manufacturer (OEM) specializing in high-tech electric cars, the research delves into the challenging scenario of the Chinese electric vehicle market, which recently faced a bubble in 2023. The market proliferation, supply chain disruptions, and price wars triggered by Tesla have resulted in a survival struggle for numerous automotive startups, leaving larger companies with increasing market shares. Despite facing adversities, NIO managed to secure a promising segment catering to premium-range battery electric vehicles (BEVs), establishing a competitive advantage through differentiation. By pursuing ambitious investments, the company aims to create economies of scope and achieve cost leadership, venturing into new market sectors and vertically integrating the production chain. Given NIO’s agility in adapting to market conditions, aggressive entry into new segments, and a strategic vision for the future, it serves as an excellent candidate for testing and validating the proposed framework. The research sheds light on NIO’s trajectory and offers insights into its potential for sustained growth in the dynamic electric vehicle market.

The Influence of OPEC+ on Oil Prices: A Quantitative Assessment

Since 2017, a new coalition of oil producers led by OPEC and Russia (known as OPEC+) implemented production cuts to limit downward pressure on crude prices. The Covid-19 shock led to a temporary collapse of this coalition and to a price war among OPEC+ members, which contributed to the oil price slump that had originally been caused by widespread containment measures. As the oil market balance seems to crucially hinge on the stability of this coalition, we draw on the 2017–2020 experience to assess the effectiveness of OPEC+ in sustaining oil prices. Using a counterfactual analysis based on two complementary structural vector autoregression (SVAR) models, we find that the impact of OPEC+ on the price of oil was small, owing to significant deviations of oil producers from their assigned quotas. On average, without the OPEC+ cuts, the oil price would have been 6 percent (4 USD) lower than observed.

Volatility spillovers across the spot and futures oil markets after news announcements

We study the influence of OPEC announcements on volatility transmission across the Brent and WTI oil markets. First, we examine the impact of information shocks with the use of a VEC-MGARCH model, allowing for asymmetry and structural breaks. Second, we examine the transmission of volatility across crude oil markets with the use of a dynamic connectedness approach. Our results demonstrate the existence of asymmetry in the responses to shocks during the Russia-Saudi Arabia oil price war. Furthermore, we find larger volatility responses for the Brent futures and spot prices after negative shocks in the COVID-19 period compared to shocks in the pre-COVID-19 period. Additionally, our results from the dynamic volatility connectedness model suggest that the WTI spot and futures markets are net transmitters of volatility shocks.

I'll be there for you: coopetition and competitor-oriented activities among South Asian restaurants in two UK regional clusters

PurposeThis study investigates how a competitor orientation (knowledge of and acting on competitors' strengths and weaknesses) facilitates coopetition activities (collaboration with competitors), within networks of competing micro-sized, independent, family restaurants, owned by entrepreneurs from ethnic minority backgrounds.Design/methodology/approachAn instrumental case study features data collected from interviews with 30 owners (as key informants) of micro-sized, independent, family-owned restaurants, in two urban clusters within the Midlands (UK). Specifically, the context involves restaurants offering South Asian cuisine and where the owner originated from the Indian sub-continent (Bangladesh, India or Pakistan). Secondary data were collected wherever possible. These two clusters (not named for ethics reasons) are highly populated by members of these respective ethnic communities; also, they contain a relatively large number of restaurants offering South Asian cuisine.FindingsA competitor orientation facilitated strong coopetition-oriented partnerships comprised of extended family and intra-community members that helped enhance individual firms' performance, maintained family employment and sustained their cluster. It also helped owners develop subtle counter strategies where weak ties existed, such as via inter-community networks. For example, strategies attracted customers that were not loyal to a particular restaurant, or indeed, sub-ethnic cuisine (within Bangladesh, India or Pakistan, like the Punjab region). Subtle as opposed to outright counter strategies minimised retaliation, since restaurant owners wanted to avoid price wars, or spreading misinformation where the reputation of a cluster may suffer alongside the likely survival of individual businesses within that regional cluster.Originality/valueMixed evidence exists in earlier studies regarding the competitive rivalry in certain sectors where ethnic minority ownership is prominent; not least, restaurants located in regional clusters. However, this investigation considers the notion – what if some of these earlier studies are wrong? More specifically, does certain prior research under-represent the extent that rival entrepreneurs of an ethnic minority origin collaborate rather than compete for mutually beneficial purposes? New evidence emerges regarding ways in which a competitor orientation can influence the performance-enhancing nature of coopetition activities among business owners originating from both intra and inter-ethnic communities.

COVID-19 and extreme risk spillovers between oil and BRICS stock markets: A multiscale perspective

This paper uses the VMD-Copula-ΔCoVaR model to examine the dynamic characteristics of extreme risk spillovers between the oil market and BRICS stock markets during COVID-19 from a multiscale perspective. Using daily data from January 1, 2019 to December 31, 2021, the empirical results show that: (1) Bidirectional extreme risk spillovers exist between oil and BRICS stock markets for the original return series, short-term, medium-term, and long-term components, with BRICS stock markets generally exporting higher risk to the oil market than they receive. (2) The magnitude of risk spillovers at all time scales presents an inverted V-shaped pattern during COVID-19, increasing with the worsening of the pandemic and the oil price war, then decreasing after various countermeasures. (3) Following the COVID-19 vaccine rollout, the long-term spillovers between oil and stock markets in countries such as Brazil, China, and South Africa have returned to or even fallen below pre-pandemic levels. Conversely, the magnitude of short-term and medium-term risk spillovers generally remains higher than pre-COVID-19 levels. (4) The short- and medium-term components are the primary contributors to overall risk spillovers, whereas the long-term component contributes the least. (5) Oil and the Russian stock market exhibit the strongest risk spillovers at all time scales, while oil and the Chinese stock market have the weakest risk spillovers. Overall, our findings suggest that investors and policymakers should consider the impact of the COVID-19 pandemic and various countermeasures on the multiscale spillovers between oil and BRICS stock markets to optimize decision-making and maintain financial market stability.

Designing Blue Ocean Strategy at UD Rejeki

The property industry is an industry that has intense competition. The competition creates an oversupplied condition where there are more goods offered when compared to market demand. This condition causes market players in the property industry to tend to conduct price wars. This competition is also felt by UD Rejeki as one of the players in the property industry. In order to avoid this fierce competition, companies must present innovations. This research uses Blue Ocean Strategy as a tool to design strategies so that UD Rejeki can avoid market saturation and price wars, and become a sustainable company. The design of Blue Ocean Strategy in this study is designed through the Strategy Canvas, Value Innovation, and Four Action Frameworks. This research method uses interviews from various sources that have been selected using purposive sampling method. Interviews were conducted in a semi-structured manner and documentation was conducted using transcripts, photos, and voice recordings. Data validity and reliability were tested using source triangulation.
 

Competitive Bundling and Offer Design in a Symmetric Bertrand Duopoly

How should digital service firms design and bundle their offering to capture a large market while seeking differentiation from competition? To answer this question, we consider the most generic model of competition, namely, two symmetric firms competing on price with regard to two (independent or complementary) components with an arbitrary distribution of valuations, without restrictions on their product offering. We show that three outcomes emerge in equilibrium, namely, a full-mixed bundling monopoly, a full-mixed bundling competitive duopoly leading to a price war, and a pure or partial-mixed bundling differentiated duopoly yielding positive profits for both firms. The latter equilibrium is the most plausible because it is the only one that is both trembling-hand perfect and not payoff dominated. We demonstrate the benefits of bundling under competition, thereby explaining the online platforms’ motivation for and success in expanding their offering horizontally. Yet not all products may be offered in equilibrium to avoid direct or indirect competition; hence, competition may lead to a narrower range of products available than a monopoly. Is bundling anticompetitive? It is a double-edged sword. On the one hand, it softens price competition by allowing firms to differentiate their offering. On the other hand, it stimulates competition by creating some product overlap.

Analysis of E-commerce Platforms’ Price War: Based on Game Theory Model

Based on the fact that T-mall and JD.com, two major e-commerce platforms, reduce prices significantly every year in the shopping festival, but still can obtain high profits, this paper explains the causes and profit mechanism from the perspective of game theory. Meanwhile, this article builds a Bertrand model to analyze the profit mechanism of the two firms. The Nash equilibrium is (Discount, Discount) until they drop their prices to 0, which is obviously against the reality that both companies can gain high profits during the shopping festival, and consumers can also buy goods at lower prices. Therefore, there is a possibility of a collusion between the two firms. Finally, this paper introduces trigger strategy, the conclusion is that the two companies can make profits in the long run as long as they cooperate with each other. In addition, from the perspective of consumers, e-commerce platforms and the government, this paper also gives a reasonable decision-making strategy in the shopping festival. This research not only provides promotion programs for e-commerce platforms, but also helps consumers understand the profit mechanism of e-commerce platforms. At the same time, the government can also get inspiration from it, such as setting a minimum price to avoid the disruption of market order by vicious competition.

Analysis of the "Prisoner's Dilemma" Model in the Application of Price-Matching Dilemma: Taking MeiTuan and Everything 30min as Example

One of the most well-known examples of game theory and a significant element of economic theory is The Prisoner's Dilemma. The Prisoner's Dilemma is one of the best instances of the conventional non-zero-sum game in game theory, which demonstrates that the group does not always represent the best option for individuals. When major brands and companies are engaged in competition, the Prisoner's Dilemma model is used to examine strategic choices and price setting. Everything 30min and MeiTuan, the two major participants in the takeaway market, would be excellent instances for using the Prisoner's Dilemma model. This paper analyzed the two companies in a similar prisoner's dilemma in the price war, how MeiTuan is a newcomer to the industry is how to break the everything 30min monopoly and enter the market with its share of the market. Finally, this paper integrated the dynamics of the price-matching war between the two big competitors with the prisoner's dilemma to come up with three suggestions. Additionally, these three suggestions can further help them out of the prisoner's dilemma like the price-matching war.

MERGER OF VODAFONE AND IDEA

The Vodafone-Idea merger, the largest merger in the history of the Indian telecom industry, was an attempt to address the growing dominance of Reliance Jio, which started offering free services, thereby gaining a significant market share. The primary aim of the merger was to instill confidence in the telecom companies during a price war. The merger of Vodafone and Idea had a significant impact on the telecom sector, surpassing Bharti Airtel to become the largest cellular service provider in some markets and the second-largest in others. This paper discusses the reasons behind the merger, the conditions of the merger and the impact of the merger on telecom industry. KEYWORDS: Vodafone, Idea, Merger, Reliance Jio, Telecom Industry.

Ibovespa’s response to the behavior of oil and ore prices during the international crisis caused by COVID-19

The systemic risk caused by COVID-19 affected all sectors of the economy, thus showing the vulnerability of some sectors in comparison to others. In this context, the supply shock experienced by the iron ore sector has drawn attention and resulted in a price increase. Linked to this, and in a negative way, oil prices fell due, among other factors, to the price war between producing countries.In this sense, this study analyses the volatility of the Brazilian stock market indicator in relation to the prices of the aforementioned products and the price of the dollar. The results show the importance of the price formation in these markets for the variation of the indicator. The appreciation of Brent oil and iron ore prices on the Dalian Commodity Exchange (DCE), in China, caused the Ibovespa indicator to move in the same direction. In addition, in statistical terms, the study highlights the great importance of the exchange rate as a determinant in the variation of the indicator and, consequently, affecting the intention to invest.