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Topic: Business
Number of pages / Number of words: 3 / 759
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To keep pace with the times, only focusing on low price is far from enough to maintain channel leadership.

2) Gome’s defiant market strategy may suffer attack of suppliers’ alliance, and give the competitors opportunity.

Most of the color televisions sold by Gome were supplied by domestic brands participating in the alliance...


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Any possible reduction in production that might be carried out by this pricing cartel would affect pricing trend for color televisions and in turn present risks for Gome’s operation. Worse still, if Gome’s competitors deliberately decided to comply with manufacturers’ price control policy, Gome would be threatened with a collective assault from which it might not recover...


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