Price Competition is an Eternal Subject to Market Competition

In view of the depreciation of price competition in recent years, this paper, based on the fundamental theory of market competition and lots of positive data, expounds that market competition is in fact a contest between competitive abilities and that the core connotation of competitive abilities is the cost advantage of products in the form of price advantage. Thanks to the progress of science and technology and to the development of information technology in particular, the product quality of various enterprise and even of various countries is becoming similar. Therefore, people will still take into account the ratio of property to price even when they purchase products of poor quality. This indicates that the significance of price competition should not be underestimated. Price competition is an eternal subject to market competition.