If You Can’t Beat Them – Compete With Them

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I have previously posted about the use of pricing strategy in battling piracy and IPR abuse in China (see here). The latest news on this front is that Warner Home Video is selling a new no-frills, DVD (The Aviator) for just US$1.50. That should take the wind out of the pirates’ sails, but will also lead to sinking profits…

In another low-price move, Nokia has announced the launch of 3 cheap phones – retailing at around US$54 and up – in China in the hope they will drive sales growth in the increasingly important domestic mass market. As we previously noted, it is a good thing they have deep pockets.

See news sources:

    Bargain prices for DVDs–in China
    CNET News.com – San Francisco,CA,USA
    In an attempt to ward off video piracy in China, Warner Home Video has begun testing sales of the DVD of the Leonardo di Caprio film “The Aviator” for just 12 …

    Daily Times – Site Edition
    Nokia picks China to launch new cheap phones. The world’s largest handset maker Nokia launched three new phone models on Thursday, unveiling the handsets in …

2 Responses to “If You Can’t Beat Them – Compete With Them”

  1. Archive » Foreign Mobiles in the Majority| China Business Blog Says:

    […] mass market. Nokia (with its aggressive sales and marketing, and the addition of its new, low-priced offering) may be well-placed to hang on to its leadership position. Pricing will cont […]

  2. Archive » Direct and Mobile Approaches Capture the Chinese Consumer| China Business Blog Says:

    […] and to introduce new, low-cost models for the emerging consumers in less-developed areas (see here for Nokias’a latest). It is interesting to note how both companies have used strong […]

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