SummaryGome Electrical Appliances: Competing for Channel Leadership tell us a story about the legendary development of Gome Electrical Appliances. Its low-price sales strategy and countermeasures aimed at price control of the color television price alliance to maintain the leadership of the channels. This case analysis identified two major problems with the market strategies adopted by Gome in the battle for channel leadership, made two recommendations, and then analyzed the feasibility of these recommendations. General highlights of Gome: Gome, founded by Huang Guangyu, in 1987 as a small store selling only imported household appliances in Beijing. In 1996, following the emergence of domestic brands, Gome adjusted its operational structure and focused on domestically produced joint venture brands. Since the early 1990s, Gome has experienced rapid growth and established its leading position in the Chinese home appliance market. Gome pursued an operating strategy of retail and low prices from the beginning. By dealing directly with manufacturers with guaranteed sales volume, centralized purchasing and decentralized sales, concessions and a higher level of discounts from suppliers and therefore low costs were achieved, which contributed to a lower retail prices and higher sales volume. Gome has established a positive cycle of capital and goods.Strike against price controls by Color TV Price AllianceRealizing that the fierce price war in China's color TV industry has brought them increasingly difficult profit margins to supporting, in 2000, some key members of the color television industry The industry formed a pricing alliance intended to quell the price war and reestablish its leadership in the home appliance value chain. In response to the price controls, Gome launched his powerful strike by lowering the price of color televisions from Prima (alliance member) to below the price set by the alliance. Consumer response confirmed Gome's low price strategy at the beginning, while the allied manufacturer's price control signal once again obviously aimed at Gome's provocative market strategy. Major problems for the low price strategy in the battle for channel leadership: 1) The consumption model has changed and low prices are not always enough. With the intensification of competition in the home appliance market, the consumption behavior of Chinese consumers has gradually become rational and mature. They would pay more attention to product quality and after-sales service, and the price factor became less and less influential. To keep pace with the times, focusing only on low prices is far from enough to maintain channel leadership. 2) Gome's provocative market strategy could face attacks from the supplier alliance and give opportunities for competitors..