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| Steel products information |
| Looking for the Strategic Competitive Strength of China Private-Owned Fastener Enterprises |
| 2007-01-26 17:28:18 |
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| "In 2007, our conclusion is: Private-owned fastener will be willing to or forced to walk on the innovative road. They will upgrade the value chain of their products from the current low-end to the top-end."
It has been proven that the China private-owned fastener enterprises with a feature of low cost manufacturing should be changed. The private-owned enterprises have made great contribution and influence to the national economy.
The main reasons for the rapid development of private-owned fastener enterprises are the followings:
1. They quickly meet the needs of the vast market home and abroad;
2. Low cost manufacturing brings in price advantage, while price advantage is actually their major competitive edge in the global market.
However, the low cost manufacturing competition mode is undergoing challenges to some extent, so it could not guarantee the enterprises for their development in the next stage. For example, the margin of standard fasteners with property class 8.8 is too low. In order to increase export, some local fastener enterprises would lower the prices one after another. The low cost is at the cost of the welfare, salary of employees, resources and environment. This kind of practice benefits the foreign buyers and customers so that it causes the antidumping investigation and political blame from foreign countries (EU, etc).
In 2007, our conclusion is: Private-owned fastener will be willing to or forced to walk on the innovative road. They will upgrade the value chain of their products from the current low-end to the top-end.
Under the current conditions, most private-owned fastener enterprises have to change themselves, to face the structural adjustment of products, to establish strategic development plan. During the change period, they have to find out how to survive and how to develop. After that, they should keep innovation and try to learn how to get ready for the future; they should keep differentiation under the guide of the marke. Secondly, they have to get rid of the idea that is simply in pursuit of profits. Instead, they should seek for the mass production, commercialization and social benefit. Moreover, they have to have a clear HR structure, especially attaching great importance to staff training and stimulation.
In the coming years, the change of China private-owned fastener enterprises from general enterprises to modern ones provides the opportunities for the development of China fastener enterprises. The enterprises will play a leading role of the world factory and finally achieve the great purposes of "hundred year enterprises" and "hundred year brands". |
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