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How to Stable Development of Cable Enterprises in the Fierce Market Competition


Release time:

2011-09-05

Wire and cable industry after nearly ten years of rapid development, China has become a cable power. Since the autumn of 2002, the "power shortage" has promoted the rapid development of China's power, especially the power supply construction. With the implementation of the "Eleventh Five-Year Plan", large-scale power grid construction such as west-to-east power transmission, skeleton power grid boosting and expansion, and national networking will provide a broad space for the development of the wire and cable industry.

Wire and cable industry after nearly ten years of rapid development, China has become a cable power. Since the autumn of 2002, the "power shortage" has promoted the rapid development of China's power, especially the power supply construction. With the implementation of the "Eleventh Five-Year Plan", large-scale power grid construction such as west-to-east power transmission, skeleton power grid boosting and expansion, and national networking will provide a broad space for the development of the wire and cable industry. On the other hand, it is undeniable that my country's cable industry is large but not strong, facing many contradictions and difficulties, which seriously restricts the development of cable companies. There are a large number of cable industries in my country, reaching more than 7000, but Most of them are small and medium-sized enterprises, and many "workshop enterprises" that do not have the necessary means of production capacity, quality control and testing can mix in the wire and cable industry, coupled with the operating pressure brought about by the continuous rise of raw materials, the phenomenon of fake and shoddy, shoddy, shoddy building and shoddy materials has been repeatedly banned, and non-standard products are prevalent, which not only lays a huge potential safety hazard, but also makes it difficult for enterprises and dealers to produce in accordance with the law. In addition, foreign-funded enterprises are eyeing up and coveting our big cake. Therefore, how to make our national cable stronger and bigger is worthy of our consideration.

So, for wire and cable enterprises, how to achieve their own rapid, healthy and sustainable development in the fierce market competition.

First of all, cable enterprises should take enterprise management as the starting point and take management as an important measure to improve the efficiency of enterprises. Management out of efficiency, management out of productivity. For the cable industry, management is particularly important. As we all know, the cable industry is a "material heavy industry light" industry, especially for Chinese cable companies with low technical level. Therefore, the product cost of the enterprise is accounted for 80% by raw materials, that is to say, basically only 20% of the cost can be regulated. How to reduce the 20% cost as much as possible has become an important way for enterprises to improve their price competitiveness.

Secondly, technological innovation is the fundamental factor to improve the competitiveness of cable enterprises, with the advent of the era of knowledge economy, innovation and development has become the only way for today's enterprise development, technological innovation has become an important choice for the development of modern enterprises, is to improve the competitiveness of enterprises and the key to sustainable development. Only by continuously developing products with high technical content and good quality can enterprises remain invincible in the fierce market competition. For the wire and cable industry, technological innovation is more important, on the one hand, the wire and cable technology content is low, so that the industry entry threshold is low, the market competition will be more intense, on the other hand, with the rapid development of society, people on the high-end cable The requirements are getting higher and higher, and various "environmentally friendly cables" have become the first choice for consumers. But technological innovation is not easy, to engage in technological innovation, improve the technical content, there must be a long-term concept of development, many wire and cable enterprises, short-sighted, lack of atmosphere, a serious lack of investment in new products and new technologies, thus restricting the further development and growth of enterprises.

Third, implement a differentiated business strategy. Differentiated management is a more commonly used competitive strategy, is the enterprise in the process of production and operation, will give full play to and use its products or services unique part of the product or service advantages until all different from other enterprises, as a guide to the direction of sustainable and stable development of enterprises. We know that the market is composed of various forms and different needs of consumer groups, and this consumer demand is constantly changing with the development of the times. Therefore, no matter how perfect and mature the market is, it is impossible to remain unchanged for a long time. Market differences always exist, business opportunities can be seen everywhere, even in front of the traditional product market operators do not have to appear at a loss, the key is how deep you cut into the market. At present, there are many enterprises in China's wire and cable industry, most of which have the same products and low technical content. In the fierce market competition, they will inevitably fall into a "zero-sum game.