In recent years, the price competition in the tape machine industry has clearly led to a decline in the economic efficiency of enterprises. But some impacts are worth paying attention to, and some impacts are still potential. To view the price competition of tape machines, it is necessary to be objective and comprehensive. Based on this, understanding the essence of price competition is positive.
    Firstly, the price competition has resulted in a low level of profitability for the entire industry。
    If we say that the machinery industry is a low profit industry, heavy mining machinery is a low profit industry with social benefits greater than enterprise benefits, and the belt conveyor has been a unprofitable industry in recent years. The survey shows that non-profit enterprises account for 90%. Although the low efficiency level of enterprises has its own industry characteristics, and the profit margin varies in different industries, how can enterprises in low profit industries withstand price wars. Therefore, in the price competition, it is inevitable for the entire industry to have low efficiency.  
    Secondly, price competition leads to a decline in product technology and quality.
Due to profit driven factors, tape machine products have encountered price discrimination in the market. Therefore, many companies have adjusted their production organization to adapt to the current market situation. In enterprises with a variety of products, there is a practice of expanding external collaboration and reducing costs. Instead, using one's own abilities to produce more profitable products, in enterprises with a single product, collaborate on products with low prices and no high quality requirements. Collaboration between enterprises is an effective way to adjust production capacity, but it can affect product quality to varying degrees.

The investment in enterprise technology and development funds has also begun to flow towards non adhesive tape machine products.
    Thirdly, price competition makes it difficult for enterprises to sustain internal technological transformation. In recent years, it is rare for enterprises in the industry to carry out large-scale technological transformations around tape machine products. Enterprises have more existing equipment capabilities and resources, but are willing to invest less in debt for long-term development. They have to cope with market price changes, fulfill more orders, and consider improving product technology levels. In fact, it is unrealistic to invest funds in large-scale technological transformation of tape machine products based on current market prices. The interest rate on invested funds is much higher than the interest rate on the product. In fact, few financial institutions have invested in the belt conveyor industry within the heavy mining industry of the machinery industry.The market life cycle of tape machine products is relatively long, and the market demand is good. Many professionals in the same industry are aware of this. Therefore, companies in the industry generally have the idea of developing the technology and manufacturing of this product. However, the market is ruthless, and their ideas cannot be realized.
    Fourthly, the entry of foreign-funded enterprises or external funds into the tape machine industry has widened the gap between domestic and foreign-funded enterprises. After several rounds of technological transformation at the end of the last century, the host factories in the entire industry have made significant improvements. In the past decade, some companies have even abandoned their original process parts. For example, the reducer rollers are still at the international level of the 1970s. In recent years, the reducers and rollers that have entered the domestic market are at the same level as before. Their entry into the market is determined by market demand from a positive perspective, but from another perspective, it is a result of price competition across the industry.
    Fifth, small and medium-sized enterprises have also found survival space in the price competition.
In a comprehensive sense, price competition has cultivated some small-scale belt conveyor enterprises. Whether it is obtaining collaborative orders from large-scale enterprises, or non essential equipment orders for small projects, spare parts orders. Due to their ability to afford low prices, they have considerable price competitiveness. The different scales of enterprises make them face their own consumer groups.
    Sixth, the positive effect of price competition is reflected in more specific specialized division of labor.
In the industry, enterprises that produce supporting parts are generally more active than those that produce main engines. As a result, main engine manufacturers have begun to abandon the practice of being large and comprehensive, and have begun to accept these supporting factories. This has led to the development of supporting factories, and main engine manufacturers have obtained low-priced supporting parts to cope with and meet non-standard bidding pressure.(Taken from the internet)