How Chinese LED display companies build their competitiveness

Nowadays, LED display screens have been widely used in advertising media, gymnasiums, stage performances, etc., and have become the most mature market segment in China's LED application field. According to data from the High-tech LED Industry Research Institute: As of the end of 2011, there were about 1,210 LED display manufacturers in China, and the output value of LED displays reached 21.9 billion yuan. Small scale and low industry concentration are the true portrayal of the current status of China's LED industry.

In 2011, under the double pressure of internal and external environment, China's LED display industry experienced a thrilling price killing and baptism. Formerly the “lightning collapse” of the top 10 in Shenzhen's optoelectronic industry, it has brought many sighs of “same life” to the whole industry!

In the process of development of each industry, from the birth to the maturity, it is basically necessary to experience a "successful defeat", which is the general law of the market economy. N more "钧多立立" falling blood, just a "blind expansion, capital chain break" can comfort, interpret? What is the source of evil behind the deep hidden?

How to survive, live well and live for a long time in a perfectly competitive market?

How to build enterprise competitiveness in the process of fully competitive market evolution to monopolistic competition market?

Strategic focus, don't be too high
At present, the domestic LED display companies have many short-term behaviors, and they are all involved in the fields of packaging, lighting, etc. under the current situation of some flat screens. Under the temptation of some local government investment policies, they are far away from the advantages of industrial clusters. The establishment of the factory, attempting to eat on the upper, middle and lower reaches, grabbing the profit space of all links in the industrial chain, and its name: "resource integration." Finally, the stalls (scale) are large, management is still that management, there are many places where bloodshed, capital is tight, and resource integration is 1+1<2, and eventually it will bring itself into a land of eternal annihilation.

“Floating” is the norm in the beginning of every new industry. The temptation generated by the huge market feast makes it easy for enterprises (homes) to lose their way. The traditional wooden barrel theory (how much water can be loaded in the barrel is determined by the shortest piece of wood) makes us fall into a misunderstanding of thinking. The advantage of all aspects is the ideal world. It is difficult to make achievements in the actual business war, and most of the success stems from us. To stick to the advantage (long board), to maximize this advantage, is the way to become king.

Strategic focus, give yourself a clear strategic positioning. Only focus can produce the same power, abandon those ideas that look perfect (when you are instigated, please be careful!), concentrate limited resources, adhere to a certain market segment, and strive to be a leader in this field. It is predicted that by 2015, China's display market will reach an output value of 45-50 billion yuan, and market sales are expected to reach 50-70 billion. At present, there are more than 40 companies with over 100 million display industries, exceeding 300 million. There are only a handful. The industry pattern has not yet been formed, and a big window of opportunity is in sight. From the analysis of industry concentration, the birth of China’s LED display with a scale of over 3 billion (the market share will reach 5-10%) will not take too long. time.

How to build competitiveness?

In 1990, Professor Chamrahalad of the University of Michigan Business School and Professor G. Hamel of London Business School published the paper "The Core Competence" in Harvard Business Review. In the Corporation, the concept of the core competitiveness of the enterprise was formally proposed.

The "core competitiveness" of the enterprise is a very valuable management concept, but unfortunately the author does not effectively give a satisfactory theoretical system (the definition is not rigorous, etc.), and does not give a very operational The methodology (such as: tools, roads, etc.), especially in the current market environment of China, the concept of core competitiveness is to make many business owners sound beautiful, and they can't do it. The understanding of core competitiveness can also be described as varied. The public and the spouse all said that each and every advantage that can be a victory over competitors has been defined as the core competitiveness of the enterprise.

Everything has a path. The path gives us a clear idea. What is more important is that we have mastered the action steps. The path is not static, and it is constantly verified and grown in practice.

Exploring an operational enterprise competitiveness building road strength is the most real and urgent internal demand of China's LED display companies in the face of fierce competition. We are trying to find out the competition of Chinese LED display enterprises. The clear road of force.

From the product layer to the brand level competition process, we listed the main competitive elements of China's LED display industry from the factory, market, and mental interface.

From the current competition level of the domestic LED display industry, it is still basically in the early stage of product competition. The key indicators of competition are reflected in: price, quality, delivery, after-sales service, etc. The price elements are particularly prominent at this stage. Today, many people in the business and marketing circles are all angry and contemptuous. They criticize nothing. Criticism is subjective, competition exists objectively, and it does not die because of your opposition.

How to surpass competitors and build competitiveness is essentially an effective combination of competitive factors.

First, we must clearly identify the most typical and representative key elements of competition from the competitive landscape of the industry, and focus on the most important factors - the key drivers.

The second is to thoroughly study the advantages of major competitors (industry benchmarks or equivalent equivalents) on the main competitive factors, and use the combination of competitive factors to innovate, such as: using services to counter prices, using channels to block brands, etc., to develop effective proximity Beyond the plan.

The third is to grasp the transformation of the industry's competitive situation. This is not a difficult problem. In fact, it is only necessary to follow the general law of economics (common sense) to clearly understand the development competition trends of many industries and adjust the competition elements combination.

In the face of temptation, you can endure loneliness; face competition, dare to fight hard! Under the realistic commercial competition situation, grasp the pulse of the industry, build your own competitiveness in the market experience The advantage, pragmatic and steady is the good life of the enterprise and the long-lived king.

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