Sporadic dumping is the practice of occasional dumping. It means that the company does not sell its products regularly at dumping prices. This can be a short-term or temporary phenomenon. It is therefore not a permanent and long-term phenomenon. https://efinancemanagement.com/economy/sporadic-dumping

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https://efinancemanagement.com/economy/sporadic-dumping
Sporadic Dumping

2. 1. Meaning
2. Reasons for adopting Sporadic Dumping
3. Example
4. Reference
Content

3.  Sporadic dumping is the practice of occasional dumping. It means that the company does not sell its products
regularly at dumping prices.
 This can be a short-term or temporary phenomenon. It is therefore not a permanent and long-term phenomenon.
 It sell its products at a lower profit margin, or sells at a price that covers only its marginal costs, or perhaps even at a
loss.
 Unlike other forms of dumping, the main purpose of this type of dumping is not to eliminate competition in foreign
markets. This is a temporary or occasional strategy pursued by the company.
Meaning

4. 1. To liquidate excess inventory:
A company can build up an excess inventory of its goods over time & not be able to sell it on its domestic market. It has
two options in this case – to lower the price of the product on the domestic market or it can export the surplus goods.
Opting for first option will destroy its own prices domestically. If it chooses the other alternative of exporting its excess
stocks, it may automatically have to go down the path of lowering the price of the product on the international market.
2. Items of obsolete technology:
A company may buy new products with new technology to the domestic market. In such cases, it may have a stock of old
products that work with the old technology. In order to liquidate the old technologies or obsolete products, the company
therefore has only the option of a sporadic dumping strategy.
3. Sector specific:
Sporadic dumping is often sector-specific, and is widespread in sectors dealing with perishable goods and commodities
with limited shelf life. Such sectors can be agriculture, poultry, dairy products, etc. Therefore, companies may opt for
sporadic dumping of such goods in order to make at least some money from it.
Reasons for adopting Sporadic Dumping

5. China was a major producer of CD, DVD and MP3 players in the early years of the 21st century. With the advent of
storage-based media players, demand for the old CD players and CDs, DVDs and MP3 players plummeted. It left
producers with the stock of unsold inventories.
They immediately stopped any new production of these players and the media & resorted to sporadic dumping to
eliminate and liquidate their unsold stocks. As a result, neighboring countries were flooded with these players and their
media. The pricing was never-before-heard of which the local producers could not even think of matching.
Example

6. Reference
To know more about it, click on the link given below:
https://efinancemanagement.com/economy/sporadic-dumping