When a category has passed the early market, the next step is a price war.
Because in the early days, the merchants who did it first made money. We all know that the ability to replicate and re-innovate in China is the strongest. Since this category is profitable, more and more merchants will join later, the competition will become more and more fierce, and supply will exceed demand. At this time, a price war is inevitable. .
On the one hand, due to the huge profit margins, new entrants often snatch the market by cutting prices; on the other hand, due to the maturity of technology, the cost is also falling .
I believe we have experienced this at least. For example, the early PC computers were generally more than 10,000 yuan, and now they are just a few thousand yuan. Another example is the early smart phones, which cost around 5,000 yuan. Now just a thousand and a few bucks...
Competitors clearly feel more and more;
Prices continue to drop, constantly refreshing low records;
The third stage: operation war/channel war/brand war
When there is a price war, it is also a time to test the ability of decision makers.
Some merchants keep cutting prices, and finally put all the money they made before; some people give up this category and find new categories to repeat the first and second stages, making a time difference (this is also a model).
But more people don't want to cut prices, can't find better categories, or only focus on one industry. At this time, they must enter the "operation war, channel war and brand war".
Entering this stage is the time to truly test the company's comprehensive capabilities and strength. However, most businesses either quit at a loss or struggled to support them. The 20% that really reached the top were very few.
At this stage, most businesses want to make a brand, but building a brand is difficult and difficult, and it takes a long time, ranging from two or three years to five or ten years. In the past few years, it is impossible for merchants to wait for the brand to start before making money. It is necessary to gradually form a brand while making money. This requires finding a parallel between "selling goods" and building a "brand", which involves fine-grained sub-operation stages, where country email list operations, channels, and brands work together, and survival and development coexist.
Special attention here: in addition to stepping on the industry dividend in the early stage of the product, the operation at this stage must also be superimposed on the new media dividend. Only in this way can a nuclear explosion-like reaction be produced.
This is also where the top operators are different, where their capabilities are reflected, and where their value is reflected!
There is no unreasonable birth in the world, all success is a long-planned accumulation!
Stage 4: Mode Battle
Most businesses will enter the third stage, but there are countless people who die in the third stage, or are trapped in the third stage and cannot get out.
After going through the third stage for a period of time, whether the businessman can figure out a development path and model of his own determines the advance and retreat of the enterprise, but this puts forward higher requirements for the company's comprehensive talents.
For example, some merchants have accumulated tens of thousands and hundreds of thousands of old customers fans in the early stage of e-commerce. As the cost of acquiring customers in e-commerce is getting higher and higher, merchants have opened micro-malls and operated in private domains, allowing the old to lead the new. Fission, secondary distribution, franchise agency and other means form their own business models, and this is the upgrade to model warfare after corporate integration.
The establishment of the model is closely related to product characteristics, industry conditions, enterprise resources, and current trends.