How Malicious Low Price Break An Industry
As we all know, good products with low price are always attractive, companies (or manufactures) are also
chasing this goal. Most Medical equipment enterprises in China choose such low cost strategy base on their
high efficient management and operation. Medical equipment industy develops so fast so that mountains
of new companies enter this field, this situation cause competition become more acute, what's the main
competition expression? Price! Then cause the price keep going down to a unexpected point. Acutally
low price do attractive terminal user, also can help many new player can stay in this field, seems win-win.
But the truth is low price cause high promiss, bad quanlity and bad service, also company just get the
short time profit but the cost is that they are burning their base.
What disaster will be caused by malicious low price to industry
We have to admire, there are some good enterprice do very well in low price strategy, such as
Walmart. They use their resource to cut the cost in every point with resonable way, company can
get good profit and customer also like such company. But we can see many many company do
the terrible thing, they don't know how to use their resouse to manage their production, suppliers,
quality, even sales and service, what they have just low price, such company will definitely obsolete
by the market. Because medical equipment industry is for saving people, and it will not tolerate to bad quality.
What disaster will be caused by malicious low price to company
We need to know that customer's base need is fulfill their demand and high efficient service, that's the
first place, then come to the price, we call it cost performance. Comanies improve their brand image, use
products with high cost performnce to attract customers is the correct decision. But malicious low price is
misunderstanding to the customers' bast need.
Most compaies with low price stragety have a same characteristic, they don't care about research, they even
don't have such department. What they do just copy others product or make a little bit change to avoid patent
issues, they cut many necessary steps to achive the low price. Such stragety may help them occupy some department,
but by sending bad quanlity product with bad service market will abandon such companies, because their product and
service will never fulfill customers'need. In a word, companies who use malicious low price stragety are buring their root.
Then we should know disaster will malicious low price cause to user
Cost performance playing more and more important role in present medical equipments' market, if users only focus
on price that would be a fatal mistake. The quality of medical equipment will definitely affact the quality of medical
treatment. As we all know the relationship between doctors and patients is so complicated, so any medical accident
will bring a unexpectable cost, it will not only delay patient's recover but would also cause doctor lose their property
even life. The after service of equipment is also important at the same level. So if the vender doesn't have a complete
service system, that will cause trouble to users when the equipment is fault.
In a word, companies should try to use reasonable way to control their cost. users can chase cost performance,but should never go with malicious low price, this industry can goes well with such good order.