Price Game and Management Decision-Making in Enterprise Competition

Abstract

This paper discusses the primary issue of price competition for the economic market of globalization era, especially prices in the decision-making process of enterprise management and the effects of price competition on decisions. As people know that as pricing is an important link in market competition, prices have a significant impact on the profits, market share of a enterprise, as well as consumers’ behavior. The present article draws the theoretical schemes of the management, the industrial organization and the behavioural economy in order to analyse the ways in which enterprizes will be able to contribute to price competitions, what ought to do in order to attain his purposes and how enterprize managers should take rational choices in ultra-competitive scenario, in order to attain the economic growth. According to the research, under the intense competitive environment, the decision maker of enterprise will coordinate short-term price response and long-term strategy preparation. Enterprise managers can achieve profit maximization, improve non-price value and differentiation strategy through strengthening the production cost, so as to avoid the vicious price circle and forced exit from the market by the market. It contributes to the theoretical analysis of price competition and management decision-making and gives enterprise decision-makers an available reference for making sustainable development strategies in complicated and high competitive conditions.