In industry of domestic low-pressure electric equipment, the rule of average profit margin that follows in market economy, can say the incisively and vividly that reflects in this industry. Electric equipment manufacturing industry is in start first level, be faced with giant market vacuum, and right now the profit of the industry far the average gain rule that tower above market agrees with. The result causes electric equipment industry to produce what say on economics to call: "Cobweb effect " , the demand of the market is exuberant, of the product rise in price, this kind of tremendous temptation, make investor is swarmed into in succession. Its can cause this industry to attract more capital than other industry only as a result, bring about an industry to had developed fast, cause product price fall, overproduction. The enterprise is not washed out to be able to continue to live in this brutal market, great majority enterprise selects depress price, market of race to control is in with adding a product the portion in the market, borrow this to make up for or suit to create the difficult position with too meager gain because of product value element. But of things go contrary to one's wishes is, enterprise not only not from inside predicament be able to break out of an encirclement, and contrary is the enterprise is entered again new round price war, then enters the strange ring of vicious circle another time afresh. Of course this kind of awkwardness can make the enterprise is immersed in unending price only in competition, and corresponding profit from scanty again scanty, the technical innovation of the enterprise also is mentioned with respect to have no way.
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