What is Sibling Rivalry?

Vicious competition refers to the way in which companies provide products or services at prices that are well below the industry average or even below cost, or use non-commercial unfair means to gain market share.

Vicious competition

If there are only two consequences of the vicious competition in the company's industry, either the company's passive or active participation will lead to a long-term sharp decline in profit margins and it will eventually be difficult to sustain.

Vicious competition

The vicious competition in China mainly exhibits the following characteristics.

First, "excessive entry" coexists with "exit restriction".

Definitive power

Reform and improve the power operation mechanism, and scientifically and reasonably define the boundaries between the central and local government's powers and financial rights. Scientifically divide the powers, that is, legally clarify the respective jurisdictions of the central and local governments and their power In order to form a new relationship model combining centralization and decentralization, clear rights and responsibilities, and scientific norms between the central and local governments. Specific to China's situation, the following aspects should be done in the scientific division of power.

First of all, in the division of central and local affairs management power, the key is to handle the final decision-making power of local "public affairs". Second, the law should be implemented

Summary

In the past, in order to attract the attention of students to grab market share, some overseas study agencies used the method of "ranking" foreign universities.

Internet cafes malicious competition

The vicious competition of Internet cafes is one of the development of Internet cafes.

Dongguan Express Industry Association established

Recently, the first general meeting was held. The meeting passed the "Articles of Association of Dongguan Express Industry Association", elected the chairman, vice chairman and secretary general of the first council of the association, and held the unveiling ceremony of the association. 76 member companies participated in the meeting. Xin Yonghong, the general manager of Dongguan Branch of Guangdong Post Logistics Co., Ltd. was elected as the first president of the association. He said that after the establishment of the association, on the one hand, it will strive for government-level recognition and policy support, on the other hand, it will work on the regulation of the express delivery market, avoid vicious competition in the industry, and promote the healthy and sustainable development of the express delivery industry.

According to Chen Guoying, director of the Municipal Post Office, there are currently nearly 750 express delivery enterprises (including branches) in Dongguan. There are 295 legal person companies that have obtained express delivery licenses according to law, with more than 50,000 employees. one. Last year, the city's express delivery business completed 3.8 billion yuan, an increase of 40% year-on-year, accounting for 15% of the province's express delivery business revenue. Chen Guoying revealed that this year's Dongguan express delivery business revenue will exceed 4 billion yuan.

Curb vicious competition

For the Dongguan express industry, the establishment of the association is a milestone. According to the relevant person in charge of the Municipal Post Office, after the establishment of the association, it will provide services to 750 express delivery companies in the city, play a role of connecting the government, enterprises and consumers, promote industry self-regulation, regulate industry behavior, establish independent innovation platforms, and strengthen the industry and related The department's communication and cooperation to promote the healthy and orderly development of Dongguan's express delivery industry market.

Specifically, in terms of market norms, the establishment of the association is expected to curb the vicious price war in the industry. Luo Qingqiang, the person in charge of Dongguan Jetta Express Co., Ltd. told reporters that the price war in the Dongguan express industry was more common in the past, which caused enterprises a headache. "After the establishment of the association, this phenomenon is expected to be curbed through mutual supervision between enterprises." He believes that the establishment of the association will give the express delivery enterprises a better development environment. ^[1]

Thinning industry profits

Non-state performing groups occupying half of the country are struggling in a harsh market environment. The biggest harm is the thinning of the profits of the entire industry.

Earning fees are small or not, and the introduction fee is high or extraordinarily high. This irrational market behavior must be supported by huge financial resources. Many state-owned performance groups and performance companies have higher-level competent departments to pay, risks and costs Can be part of the "public". However, a considerable number of private enterprises paid for their own money. Without such a huge amount of funds, they had to withdraw after taking a few performance seasons. In 2002, there were 110 art performance groups in Beijing, including 51 social organizations, accounting for 46% of the city's art performance groups. Non-state performing groups occupying half of the country are struggling in a harsh market environment.

The biggest harm caused by this vicious competition is not only hindering private capital from entering the performance market, but also making the entire industry profitable. A manager of a large state-owned orchestra once said: With such competition, one day when we have to go to the market to survive, we will find that this market has become unprofitable.

Hu Yueming said that to solve these vicious competition problems, the most important and fundamental solution is industry self-discipline. There must be strong industry organizations. Now that the government has changed from management to service, industry organizations have not been established. Therefore, the management of the entire performance market is still a vacuum.

Some experts also believe that it will be very difficult to rely on the internal strength of the industry to solve the problem of vicious competition. It is hoped that the Ministry of Culture can provide mandatory regulations in relevant regulations. The Regulations on the Administration of Commercial Performances promulgated and implemented in 1997, the Regulations on the Implementation of Commercial Performances Regulations promulgated in 1998, and the amendments and improvements to the Implementation Regulations in 2002, these are no longer suitable for the development of the cultural performance market It is recommended to introduce "Performance Law" as soon as possible.

The government's management of culture must gradually follow the path of socialized management. Evaluation of the performance industry is an important issue in the current performance industry. A fair and open performance industry assessment organization should be established to perform quality and qualification assessments on the companies in the industry as an intermediary, which can not only identify black sheep in the industry, but also reduce government management costs and achieve the purpose of purifying the performance market.

Vicious competition event observation

Repeated tax collection here

There is vicious competition in the performance market, and there is also room for improvement in the external environment of the performance market-double taxation by performers is one of them. The business tax paid by the performer should be deducted from the part after paying to the performance group, venue, and broker. 400,000 yuan each go back to pay taxes, but now the business tax is levied on the box office income of 1 million yuan, and the 400,000 yuan paid to performance groups and venues are subject to tax. In fact, the tax law is very clear, but after a performance in a foreign country, a performance group cannot always convince the "hometown" tax officer to levy a business tax again.

At the just-concluded two sessions of the Beijing Municipal Committee, members of the CPPCC suggested that a more detailed management approach should be introduced on how to levy business taxes on the cultural performance industry. For art performance groups, can actors who have been hired or loaned out can calculate the income tax after deducting it from income. It is hoped that the income tax rate will be implemented at a low rate, which will help art performance groups to accumulate art reproduction funds. Regarding the management of personal income tax, many participants believed that the government should not separately put emphasis on the management of the performing arts industry. The tax law should be treated equally. Focusing on the formulation of personal income tax management in the performing arts industry is also a form of government discrimination, which will cause social prejudice against the performing arts industry. ^[1]