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Strategies & Market Trends : Tang's school of business management for serious investors

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To: Arthur Tang who wrote (11)	5/26/2001 8:10:41 AM
From: Arthur Tang	Read Replies (1) of 57

Is price war the way to gain market shares? Or is it the way to teach business management? Price war has been used in many industries, when production automation and advertising dominance became a reality. The goal is to put competition into bankruptcy; so ultimately you take over the entire market. However, this is a war of attrition(nobody wins), you yourself could be destroyed on the way. It is only for the amateur managers. Monopoly is the game of professional managers; where by patent position, proper targeting of customers, and superior price, quality and delivery; you gain a franchise in your territory. Profits are then made easily by pricing structure(way above cost), rather than to earn a less than 5% margin by hard work. Don't think so? Study IBM. They had 30% profit margin before taxes, in the 1960-1980 period. Wouldn't you like to own IBM then?

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