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Price Strategy Research for Guizhou Mobile Communication Company Limited

Author: YangJun
Tutor: ZhangXiaoMing
School: Northwestern University
Course: Business Administration
Keywords: GZCMCC price strategy brand system
CLC: F626
Type: Master's thesis
Year: 2006
Downloads: 183
Quote: 0
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Abstract


In recent years, the profit-increase margin of Guizhou mobile communication company limited(GZM(X) in the mobile communication market in Guizhou province has been going down trend as the consequence of fury, price war-lead market competition. Continuing growth of company is facing a server menace. Therefore, it is necessary to review current product strategy, to implement a new price strategy that meets the requirement of company’s healthy growth after a complete analysis of differ aspects of establishing product prices, and to obtain the company’s advantage of continuable profit increase while maintaining the advantage in market competition.This paper adopts the price strategy of prices market economics, uses successful price strategies of modem enterprises as reference, takes GZMCC’s current operation status quo in consideration, and then proposes a new coUective price strategy to ameliorate the current product price strategy . This paper contains 6 chapters, chapter 1 starts with the new situations and challenges of mobile communication market, and then brings forward the necessity of studying mobile communication price strategy; chapter 2 introduces the development of price theory and methods related price theory of market economics; in combination with the macroscopic environment of the economical development of Guizhou Province, chapter 3 provides an overview of the development of the mobile communication industry of Guizhou province and characteristics of this industry; chapter 4 analyses the over all competitiveness of GZMCC in current industrial circumstance and the price strategy and related trademark operation revenue and cost problems of GZMCC in several price wars that took place in Guizhou mobile communication market; based on the system of brand, and demand of customer, product sale, cost of operation ,chapter 5 proposes the principle and a framework of the company’s collective price strategy and particular operation scheme; chapter 6 summarizes the forementioned price strategy and provides advices for how to further implement a mature system to generate product price strategies.To instead of low price-lead market competition, this paper proposes value of brand-lead market competition, this strategy helps GZMCC maintaining the advantage in market competition. As reference, it is also applied to other enterprises.

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