Liangzhao Xian: China's home appliance industry in 2005, three issues to be solved

Liangzhao Xian: China's home appliance industry in 2005

, three issues to be solved

This entry

Home Appliances

Market

1 5, 05 at Galanz new strategy conference and press conference held at the home appliances, Galanz Group Co., Ltd. CEO Liang Zhaoxian sustainable development of China's home appliance industry, the problems presented his views, he that the business objectives, the value of strategic positioning of the three major issues need to address China's home appliance industry.

The first is the creation of enterprise, what is the objective of enterprise development, enterprises are able to promote the health to achieve the objective? Liang Zhaoxian that the company aims to create profits, whether state or private, there is no profitability there is no value. Fundamental existence of the business is profitable, but to win to win a victory. Microwave ovens has industry monopoly, monopolization of the market direction, the next ranked third in the world, after the fifth business can not profit, and if the eighth, tenth after the huge loss of business can face a situation, the more they lose more. Who want to break this pattern of enterprises, also have no return value, because in a monopoly position in the enterprise have long maintained at small profits, small profits to sell more state. Therefore, Japan, South Korea has some of the world's microwave oven industry leading companies do not have the competitive edge, have also opted out. Some of our business in industrial restructuring, whether in business can be profitable as a top priority factor? Future long term development.

Second issue is the enterprise value, which is founded enterprises or select industry motives. In 1992, Glanz has decided to shift microwave industry Textile industry is one motivation is to see the potential market demand for microwave ovens in the market do not have a business to provide the public demand for microwave products and supporting services. Therefore, Galanz by large-scale, intensive, specialized large-scale production, a "puerile," so the public can be a microwave oven affordable products. With the microwave oven industry, the low profit era, new problems cropped up and people who bought a microwave oven does not fully enjoy the product of value, potential users of the usefulness of this product have misgivings. That is, existing products and services, there is no way to satisfy all customers, but also to the market so there Galanz dissatisfied customer try again. However, objectively, many companies in the business or select an industry, it may only see the industry's profit margins for the company to how to live, what company can provide products and services, can create the need for customers no objective planning.

Third problem is the industry concentration and choice. After 20 years of China's home appliance industry, other countries have gone through decades of a century gone a long march, rapid escalation in market competition. Behind the boom in the industry, "anarchy" free development trend is also to grow the industry exploit any tiny opening. The more common a large number of businesses squeezed in a terminal product, in the long and narrow strip of small-scale, similar technology, sand-like, low-level duplicated construction; number of premature entry into the brand OEM business diversification, leading to industry empty , enterprises lack comparative competitive advantage, especially in the core of the lack of industrial competitiveness; some businesses into the "large, small and complete" development pattern, a state enterprise with limited resources, resources were shaped into loose sand. These practices may gain short-term benefits for the enterprise, but the trend of economic integration with the arrival of the world, ignoring the specialized division of labor, are unable to pool resources to create a comparative advantage companies are caught in the closure of loss or crisis.

Liang Zhaoxian also pointed out that although the strategy of diversification and professional choices of itself good or bad, but there is a diversity matter of timing when the main industry is also vulnerable when the blind expansion is dangerous. Even the relatively successful diversification GE, when the industry is in the choice of a "can do the first and second" principle, there is no way to achieve one of the best industry to be removed. China's accession to WTO, the domestic market internationalization, globalization has brought trade policies, competitive environment, changes. Face greater development is the arrival of the opportunities and challenges, every Chinese enterprises should consider how the next round of international competition to avoid risks, seize opportunities. Combination of domestic and international markets over the past ten years competitive experience, Galanz that, no matter what time, the choice of enterprises to industrial development, we must regard its own level of development of productive forces and the existing state of industrial development may be, must be conducive to play own comparative advantage, giving full play to their core competitiveness.

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