In the previous section, we discussed the market cycle, and the sharp drop in prices is the main culprit leading to the decline of TAM. For example, boasting in dice games, continuing to follow up on prices, and having the opportunity to stay on the table. Offering a low price to increase the probability of hitting, similar to drinking poison to quench thirst.
Product positioning: performance and pricing
Divide product performance and pricing into four quadrants, please refer to the above figure. The third quadrant has low gross profit, high demand, and low entry barriers; The first quadrant is the opposite, with high profits but high entry barriers.
Domestic substitution path, from the third quadrant to the fourth quadrant, with the ultimate goal of reaching the first quadrant. In the third quadrant, price wars are inevitable, and all companies are losing money; Another side effect is that it lowers the price of high-performance products in the fourth quadrant.
Product performance: The devil hidden in details
The following is an example of using N41 TRx filters to illustrate the differences in details among products from different suppliers. There is a significant difference between the two suppliers in terms of performance control at the suppression point of second harmonic.
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