Vicious competition, also known as excessive competition, is also known as "suicidal competition", "destructive competition" or "destructive competition" in foreign economic literature, and is called "excessive competition" in Japan, and "vicious competition" in China, which is manifested in the frequent price wars, resource wars, advertising wars and other phenomena between enterprises. Most of the industries that are prone to vicious competition are those with low entry thresholds, many production enterprises, low industry concentration and huge demand.

Based on the empirical research of the Harvard School's S-C-P model, Bain believes that excessive competition is a phenomenon unique to the decentralized market structure, which is mainly manifested in the following ways: (1) product prices are below the average cost for a long time, so that enterprises only get profits far below the normal level; (2) factor remuneration is below the normal level for a long time and is difficult to transfer; (3) Slow response to the economic cycle.

In China, vicious competition not only refers to the use of products and services by companies at prices far lower than the industry average price or even lower than the cost, but also includes the use of non-commercial unfair means to gain market share.

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Li Mo came before, and this time he came back Raj, Qingyi wanted us to change the office of the waiting room and the front desk, anyway, I made a lot of money last quarter. However, there is no reception room yet, so the two of them can only come to Starbucks to sit down and chat over a cup of coffee.

Raj has brown skin, short hair, thick lips, and a strong cologne smell (mixed with a hint of curry), which looks very much like an Indian classmate of Qingyi at Harvard, and of course, in Qingyi's opinion, Indians look alike. As soon as he sat down, he began to say, "Mr. Zhang, I heard that you graduated from Harvard Business School?" High-achieving students! It's no wonder that the offensive of Little Bee Express suddenly became completely different and became quite aggressive. To be honest, I didn't expect such a drastic reform in the catering express industry, because our industry can't compare with restaurants on the front line of catering. McDonald's and Pizza Hut have their own promotional tricks, but those don't need to be expressed, so I still admire you, you lead the trend in our industry. Of course, there may be more great services all over the United States, but in the whole of Massachusetts, you are the king of food and beverage delivery! ”

There are so many words, Qingyi didn't interject a word, which shows that Raj spoke quickly. So he had to smile and look intently at the other person's lips, naturally reminiscent of the machine-gun pea in "Plants vs. Zombies".

After finishing speaking, Raj picked up the coffee cup and poured it very proudly, not afraid of burning his mouth. When he put down the glass, his expression was vaguely different: "Although I admire you, however, you have brought chaos. We don't imitate your promotional methods, but Sicily Express is different, they don't mind imitating you because your service concept is more scientific and advanced. Like the Jews, their blood from Europe has long been impure, and they have to be assimilated by the United States, both physically and mentally. They have no position, no bottom line, and are crazy people who take risks for the sake of capital......"

Qingyi's mind is full of "a large wave of zombies are coming". He simulates a game scenario in his mind, quickly collecting sunlight and then filling in the gap in the front line in time, while paying attention to the cooldown time of the plants.

Raj couldn't help but be a little displeased when he saw Qingyi's divine wandering, and said, "Mr. Zhang? ”

"Excuse me, you say it again?" Qingyi came back to his senses innocently.

Raj twitched his brows and said very succinctly: "In a word, the Sicilian Express has begun to play the low-price card." Now it's less courier than our Curry Curry! ”

Qingyi smiled and said in his heart, "That's really the case." He had long expected that Sicilian Express would give up on itself and fight with a price reduction, but he didn't expect the other party to be so ruthless, not counting the shipping cost lower than Little Bee Express, and comparing Curry Curry! The operation mode of curry curry is known to Qingyi, integrating breeding, processing, cooking, and take-out, and the freight is one dollar less than that of other express companies, and it is a low-price card.

"These days, our sales have significantly decreased by one and a half, which is caused by your company's promotional war with Sicilian Express!" Raj tried his best to keep his voice down, but he couldn't hide his anger.

"Maybe, and then?" Qingyi smiled even more, with a hint of frivolity: "Are you here to tell me to stop advertising immediately?" ”

Raj was stunned: "I don't mean that, it's just ......"

Qingyi turned his gaze away, looked at the road, and seemed to mention casually: "The Sicilian Express sent me threatening letters, and they also asked me to stop advertising, so now I am targeting them." Your company has only lost half of its sales, but our company has increased its sales by more than half of it...... That's all spit out by the Sicilian Express. Your company's main Indian style fast food, stick to the characteristics, and will never fall. But I hope that your company will not interfere with my decisions in a way that is not permitted by law, as Sicilian Express has done. ”

"We Indians are the most law-abiding." Raj immediately waved his hand, frowning: "I'm just worried that the Sicilian Express will trigger an infinite cycle of vicious competition and pull the entire catering express industry into a quagmire." ”

Qingyi now has a very accurate view of curry curry. Behind Curry Curry is a behemoth with Indians as members, much like the Chinese group in Chinatown, with a strong sense of nationality, so Curry Curry can gather the strength of all Indian restaurants and reduce shipping costs. With the support of so many manpower and material resources, the principal of Curry Curry is the most abundant, and it should be the most calm of the four companies. They could have sat on the mountain and watched the tiger fight, but Raj came to the door, indicating that the benevolent brother was a talented but inexperienced manager, a little tender.

"Calm down, sir. Vicious competition? No, I'm a graduate of Harvard Business School, please trust my judgment. Cambridge's catering express industry has a high degree of industrial concentration, and our CR4 (market share of the top 4 enterprises) is greater than 75%, which is extremely high oligopoly, which is the most unfavorable to vicious competition. Why? Because we are an oligopoly, we are a monopoly, and we control the cost of entry in this industry. Maybe I'm exaggerating, but our power isn't as weak as you think. Qingyi said with a smile: "If you squeeze out a certain family, curry curry will occupy more markets and more sources, and the turnover will immediately skyrocket." It only takes one quarter for us to see the results. ”

With such clear words, Raj could naturally hear which one was "the one that was squeezed out". He picked up the coffee cup and tasted it carefully, as if the coffee was worth a thousand catties of gold per ounce: "I want to think about it." ”

"What are you worried about?" Qingyi grinned at the corners of his mouth and said gently: "The Sicilian Express is a cancer in Cambridge City, and it should have been removed a long time ago." I don't know if you have ever heard of the famous Chinese novel "Romance of the Three Kingdoms"? It's better for the three forces to compete than for the four forces to be entangled, right? ”

"I still have to think about it. Talking to you, I learned something. Raj drank his coffee in one gulp, got up, and stretched out his hand again, his eyes flashing with sincerity: "Privately, I am willing to be friends with you." ”

Qingyi also got up, shook his hand politely, and then sat down to continue drinking coffee.

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In Bigbow, the harbour city, one of the most luxurious inns.

The inn extravagantly devotes a lot of land to the garden, planting fruit trees, flowers, and using magic items to keep the temperature in the garden, so that people can feel the breath of spring in winter. Of course, the cost of this hotel is not cheap, no tips are included, and the most ordinary room costs 150 gold coins a day.

"Today's armaments are traded at a slightly lower price than before. Adventurers have to participate in competitive competitions, and there is a large demand for magic equipment, so the price of Seiko equipment has been hit. According to our analysis, except for some large commercial banks with reserves, only the 'Huaxia' Demon Sealer has made a profit. Today, all of the 100 creation opportunities of the Demon Sealer have been auctioned off again. The innkeeper said. He was handsome, but if he hadn't removed his turban and bared his pointed ears, no one would have thought he was an elf...... And it's bloodthirsty elves.

The object of his report was his absolute superior, Clavisoll. Today, the second batch of "broken silver" of the Dusk Empire arrived in port, and Clavisoll did not go to the dock herself, but sat there, trying her best to listen to the boring terms for women. The only thing she understands is that His Majesty has lost money again, ah no, what she also understands is that the Demon Sealer has become a popular spicy chicken of the "gospel".

"Whoever is valuable in this world can stay, even if it is a combat professional who does not have any power support." The blood elf beauty reclining on the chaise longue lazily picked up a crystal grape and sent it into her red lips. "There must be a lot of people who want him to die~"

"It's a lot, but they all fail. According to unreliable sources...... innkeeper made it a light note, not saying that this "unreliable information" cost a thousand gold coins: "Several of the Gold Medal Assassins have returned home, so much so that the Assassin Guild refuses to take any mission to the Waves." ”

"I don't even dare to spy on information, and I give up easily, this is not like the style of the Assassin Guild. It seems that the demon sealer doesn't just know how to make money. Clavisol was slightly surprised.

"I'll do my best to find out." The innkeeper bowed his head.

"There's no need, let's let our necromantic spy experts do such dangerous things~" Claviso smiled smartly: "People are professionals, we just need to do our duty, for example, ......"

The innkeeper understood and smiled, "There are three dances tonight, and you need to be in charge." ”

The courtesan came to the spirit, jumped up like a cat, and left with high heels, bringing a burst of fragrance.

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(Happy and sad, last night's update was two minutes short, and I couldn't attend full time in July, and three hundred yuan flew away.) It's obviously the last day, I've paid so much this month, and it's fallen short)

(There are always a lot of accidents in life, so the bald eagle will also be struck down by a funeral mold, and my three hundred dollars are not worth mentioning.) Always think you have a chance to win? Always think that nine out of ten are stable? Hehe, I'll just smile and don't speak)

(Of course, this is just a small thing in your life and mine, just learn from it)