How Malicious Low Price Break An Industry

Update time : 2016-09-05 10:00:00

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.