The Low-Price Strategy of Hasee Computer

Hasee Computer Company was founded in September 2000, and in April 2001 its products come into market formally. In 2006, Hasee captures the second largest market share of computers in the Chinese domestic market. Lenovo has the largest market share. Hasee international sales department started business with Korea Market, and now sells more than 20000 laptops each month in the international market in 2006. In 2006 Hasee won the bid and delivered 15,000 laptop computers to the United Nations.

Unique advantages let Hasee rises rapidly.

It is reasonable that the advantage of innovation results in that of cost. Among the many PC brands, because of Hasee’s unique advantage of transferring from the upstream to downstream, Hasee started by the board, the independent production of motherboard and video card in China accounted for 30% of the market share. Contrary to most domestic manufacturers that depend on imports, Hasee is the only industry manufacturer that has the capabilities of producing both computer motherboard and video card, so the cost of the Hasee computer is about 20% lower than that of the others.

Otherwise, chain operation can lower the cost of sales channels. Hasee uses chain operation to operate its sales channels, and in fact across the country Hasee has nearly 1,000 chain stores. Obviously, this method can greatly reduce the operating cost of channels.

The disadvantages of Hasee will restrict its development.

Hasee doesn’t realize the importance of service. A person who works in a transnational electric company pointed out that Hasee doesn’t emphasize the importance of service. If Hasee does not attach importance to this point, service will become the bottleneck of its operation. And in the beginning the problem of service probably may not emerge. But if the company doesn’t satisfy the customers’ need, the company will be complained about the its products and customers will lose confidence to this brand. So company should have a good job of service because the customers are always very choosy.

Low-priced strategy is not good to format its brand. The affect of low-priced strategy may be apparent in the initial stage of development, but if you want the company to be a very big international company you should upgrade the value of the brand. Most of people think low-price computer means the low quality, and the target consumers’ brand loyalty and purchasing power may be low. So with the growth of the knowledge of this group, the original pleasure of the strategy to the Hasee will also become a burden. Although some other people don’t agree that low price means low quality, but they also think low price means low performance. As the customers becoming more knowledgeable, they will seek cost-effective products. Therefore, the customers of Hasee is dynamic, Hasee should be worried about the continuously loss of this target consumers.

It is difficult to maintain traditional strengths in a long time.

It’s hard to use the advantage of innovation. Hasee has some advantages in making motherboard and video card, this price difference between inside and outside suppliers should be controlled in a degree. Excessive difference of the price will lead to a comprehensive boycott of other brands.

Moreover, the cost of a PC is always dynamic. When LCD was pushed in the market, the consumers’ concern of price was quickly transferred to the comparison with the traditional display. So some PC manufacturers use a new technology to make the marketing competition good for them. Therefore, Hasee can’t rely on motherboard or video card to keep the price advantage.

It’s also hard to keep the sales channels ahead. In the early stages of building channels, chain operation just needs little money to start. But there are some problems of the operation