Household Electrical Appliance Enterprises Awkward Transition: Strategy And Tactics Of The Gap

With the appliance industry

Competition

The white-hot, operating profits remained low. Thus beginning the strategic transformation of many household appliances enterprises big screen, from

Price war

Shift value of war, to build high-end image and raise prices. However, further work to promote enterprise restructuring, while the existence of which has become increasingly prominent problem.

The most striking contradiction is the positive transformation of enterprises embarrassing dilemma of rapid decline. Enterprises in order to improve operating profit, high-end strategy must be implemented to enhance the product price; once to raise prices fell on the face sales, reduced market share.

In fact, China's household electrical appliance enterprises to enhance the profits of the core objectives of the strategic transformation of the initial implementation, there exists a huge blindness. One side is the lack of post-transition market research and tactics

Planning

, While the wait to the implementation of the restructuring, so that this transition due to lack of systematic links with the emergence of strategy and tactics of the gap. Some companies like to promote new products by raising prices, increasing profit margins, while still a large number of regional market price war, a large number of

Sell

Special machine. The short term because the proportion of new sales of special machines can not support the diluted profit margins, corporate profits fell but there, share declines. However, some companies are more single, is simply to raise market prices, but the auxiliary

Brand

Content, product features are not able to raise the price of the room played a very good support, consumer and market naturally will not buy it.

Therefore,

Many household electrical appliance enterprises in 2005, after a period of adjustment and transition, the market experienced a lot of resistance and confusion, enhancing competition in price after the sales are guaranteed, but its decline has occurred, which is typical strong point deficiency in transition .

At the same time, household electrical appliance enterprises in China at this stage the main battlefield of competition is also focused on a range of low-end market, which is also currently the mainstream consumer market, distribution center section of the crowd. Therefore, in this context, many companies have stressed the strategic transformation, leaving the value of line, raise prices and increase profit margins. This in itself there is not scientific. This is also the development of Chinese enterprises in the process of long-term legacy of abuse: Project launched to swarm, people struggle through a difficult path. Therefore, enterprises need to reflect on the transition process: the direction of transition where you? Your focus on the market is in what areas? Your competitive advantage is what? Competing goals and methods are applicable to you? What you can find new markets? In the end, to find a long-term development and transformation of enterprises to adapt to the road, and not simply follow suit and imitate. Early in the household appliance industry, imitation and learning can reduce the distance between enterprises and the market, but competition is already mature, very easy to mimic the loss of self-enterprise, the fall in the competition. Therefore, at this stage of transformation is not suitable for all high-end home appliances business, there are significant limitations.

The short term, this is the strategic transformation of enterprises in the process must be faced, and long-term development of enterprises is reflected in the strategic transformation of the lack of support points. Therefore, it requires businesses in the future for a long time to constantly adjust their focus and methods of competition, targeted to enhance the brand's worth, and grasp the core technology, implemented with Chinese characteristics, high-end transformation strategy.

Household Electrical Appliance Enterprises Awkward Transition: Strategy And Tactics Of The Gap

By: qoqo

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