Fast predation strategy: a case of fast predation strategy

Take the ballpoint pen operated by 1945 American Renault Company as an example. At that time, near the first Christmas after the war, many people hoped to buy a novel and unique commodity as a Christmas gift. Renault seized this opportunity, and spared no expense to introduce the production technology of ballpoint pen from Argentina, which was not available in the United States at that time, and produced products in a short time.

When pricing, they made a careful study and analysis. Considering that this product first appeared in the United States, there was no competitor, there was a shortage of materials in the postwar market, buyers were curious about novelty, and they pursued novel gifts, and so on, they decided to take a quick grab strategy and sell it to retailers at a price far higher than the cost of each piece 10. At that time, the production cost of each pen was only 0.50 dollars. Retailers sell them at a price of $20 each, and the products are all the rage in the United States, and Renault has made huge profits. Because the production process of ballpoint pen is relatively simple, it quickly attracted a large number of competitors, and the product price dropped rapidly. The retail price dropped to $0.70 each and the production cost dropped to $ 0. 10 each.