Global lighting giant spin-off and selling lighting business thinking behind the competition

In 2015, the Chinese consortium jinshajiang Lumileds 80 acquisition of philips lighting group. 1% of the company, and the other a global giant osram lighting also claimed that splitting the interior lighting business, and news from the sale, suddenly a wave of bid for the entire lighting industry boom. On one side are two of the biggest international lighting giant to sell assets, many of the world's top companies lined up to bid on one side, the asset transfer not highlighted. In April 12015, osram announced plans to spin-off channel business, mainly including the CLB ( Traditional lighting and ballast) And LL& S（ LED lights and system) , mainly involved in the division of product of lamps and lanterns, brand licensing scheme, the factory of the world's restructuring plan, etc. After spinoff of lamps and lanterns, the company will form a new three pillar industries, including photoelectric semiconductor LED chips, special lighting, lighting solutions and systems. Osram's break-up, attract a lot of big powerful company or consortium have quotation, including wood Tomlinson, bdo embellish, tongfang co, fila acoustics, China LED manufacturers. In fact, it does not seem to be 'patent' of osram, another big global lighting giants have the same action. In march last year agreed to sell its Lumileds lighting equipment manufacturing company, 80. After a 1% stake to a Chinese consortium, philips intends to continue to spin off its lighting business and is not a final decision is to this part of the lighting business spin-off listed or direct selling, however, according to Reuters news, philips has begun to accept the preliminary quotation, plans to sell the lighting business valuation is about 4 billion - 6 billion euros. The two largest lighting giants have abandoned its lighting business, what does it mean? I think this means that the competition. First of all, the unprecedented fierce market competition. It is not hard to imagine that when the global LED industry become the smoke of the battlefield, the enterprise or to preserve our sanity, or to choose. Philips and osram is engaged in the manufacture and sale of the business of lamps and lanterns has more than one hundred years of history, with the rise of new energy conservation technology, two traditional lamps and lanterns of business profitability. In this competitive market, the enterprise advantage projects, abandon the disadvantage, is also the inevitable result of market selection. The choice of 2 market source is diverse, first from their own. So, don't eliminated by the fierce market competition, the enterprise itself must strengthen the power in the first place. Enterprise strength is embodied in where? Not only refers to the funds, such as research and development strength, channel power and brand strength, etc. , to improve market position. As a result, many Chinese manufacturers for osram lighting business, it is understandable. Because the meaning of this merger is that Chinese enterprises can get osram has extensive overseas sales channels, at the same time with their own domestic manufacturing costs low. At China's potential to participate in the bid for the company's strength, but a bid to osram business that in terms of its strength is bound to the next level, the future will fall behind with other company. Similarly, market choice also comes from the competition. The opponents of ascension, will fundamentally to grab their share of the market. All at the same time, the opponent to take part in competition will affect the enterprise's own strategy. In 2015, the way of low price competition from mainland China LED manufacturers, China's regional and even global market, lighting product prices drop, comprehensive business revenue also fell, once the pride of advantages become no longer obvious, but needs huge capital investment, abandoned also become taken for granted. Second, if the enterprise compared to a miniature of the nature, the internal competition factor is also diversified. Main business and between camp business competition, competition among the channels and channels, and so on, these benign competitive factors is a driving force to promote the development of enterprises. Some companies, however, excessive balance within their own competition, I think it is quite dangerous, once the 'retiring' ways to lose, is extremely easy to produce adverse phenomenon 'eat pot. Osram and philips's split off or sell its lighting business means the business group business competition at a disadvantage in company. Any enterprise's long-term development strategy planning, positive and effective to consider the company's advantage, so from their own point of view, split off or sell disadvantage business is taken for granted. Of course, all this is gradually revealed in the competition, only in the competition is know who wins. It's hard to imagine a lack of internal competition, the enterprise will evolve. Both competition from market, and competition within the enterprise, all need to rely on a strong core competitiveness, to create their own in the competition through the heavens and the earth. Therefore, cultivating core competence become modern enterprise must face and thinking of problem. Of course, the enterprise in the process of cultivating competitiveness will be facing enterprise system imperfect, lack of knowledge reserves and enterprise research and development ability, despise enterprise strategic planning and enterprise resources dispersing effect, and many other problems. Problem is always present, but can solve the problem fundamentally to raise their competitiveness. In the process of cultivating, enterprises should first establish the core values of matching with the enterprise itself, to strengthen technological innovation, increasing research and development of core technologies and human resources management and integration, to enhance the overall quality and ability of the enterprise managers, through the establishment of strategic alliances or use the way to enhance enterprise competitiveness, such as mergers and acquisitions at the same time looking for the new growing point of cultivating core competence.