LED 'destructive innovation' means the market is not desirable
Our strategy at this stage is not to pursue profits. The key is to expand the scale and occupy the market first, which is more important for the survival of enterprises. In an interview with reporters, a well-known LED lighting company executive in the industry said so frankly. Perhaps this concept has become more representative in the current stage of industrial development. At the same time, it is accompanied by the increasingly fierce market competition and serious homogenization in 2012, many LED companies are actually facing the dilemma of scale and revenue growth but shy profits. How to find a balance between expanding market share and improving corporate profitability? This has obviously become a problem that more and more entrepreneurs have to consider. At present, on the one hand, enterprises should avoid the risks of increased inventory and capital risks, and on the other hand, they should face the reality that the market is demanding more and more products and the selection range is increasing. Do you want a market or a profit? It seems to be a dilemma choice, low gross profit, can only earn a manufacturing fee, and even grab some market projects have to lose money to earn; And the pursuit of high gross profit, take the value-added route, and can not get the amount. Recently, a company that won the bid for a city's street lamp replacement project at a price lower than 20 of all the invited companies has caused peer doubts. The company said that this move can help the company establish a brand image, establishing the position of the industry will also help to strengthen the company's ability to receive orders in other regions or provinces in the future. Occupy the market with radical price first, then dig out the profit. More enterprises make such a choice after weighing, and this choice also means the price war comes on stage at the same time, it has even become a common form of market competition that is lingering and must be faced squarely, especially the price war at the middle and low end is becoming more intense, while the middle and low end will focus on integrated marketing, and customization can better meet the needs of specific consumer groups, however, it is necessary to compete for products and professional system services. For more domestic enterprises that tend to the former, the business philosophy of occupying the market first also has its own reason: occupying the market first means having a customer base and sales volume, it is the way of survival and development to seek profits by quantity or after quantity. Of course, to occupy and occupy the market first, we must also rely on strength and cannot blindly expand; On the premise that the strength allows, after occupying a large market, people will gradually recognize the company's products, price system, etc. , which means cultivating their own customer base and expanding market channels, then, on this basis, we can do some profit-seeking operations. At the same time, such a strategy also pushes competitors out of the market at a radical price, which means that enterprises have more potential development space. However, this also means that enterprises must have an advantage in capital and scale when choosing this path, which seems to be more suitable for some people who can afford to play and go further, this is also a comprehensive test of the integration ability of enterprise products, channels, technologies, funds, industrial chains and the ability to shape the operating environment; Cost control is the top priority first, and the technical route should also be forward-looking. What route to take is more critical than how fast it goes. There are also industry veterans who are more familiar with marketing strategies, suggesting that the price war under the dominance of the market concept should be a means of competition rather than an end, in fact, it is necessary to compare the product mix strategy of the enterprise. Who is the sharp product, who is the main force, who can represent the brand image, and have a clear and overall layout, the winner is to complete the overall competition goal of the enterprise. At the same time, enterprises must also have the ability to respond quickly to the market in the price war. In the current competition stage of products with rapid changes in technical schemes, rapid price decline and rapid performance improvement, no one can guarantee that they can go all the way. Once the cost and technical performance are surpassed, they will be in danger. Entrepreneurs must have a clear and decisive sense of market competition, it is necessary to have a long-term and intelligent development thinking than the price reduction strategy. In a word, no matter occupying the market first or pursuing profits, an enterprise that wants to become bigger and stronger and shape a long-term brand must be down-to-earth and bring products with higher quality, technology and competitiveness to the market, we must establish a product system with its own characteristics and high technical content, and have a three-dimensional product strategy. Only when these are truly recognized by the market can we realize our own rapid development, eventually win more market share and enhance the brand strength of the enterprise. Instead of occupying the market and obtaining short-term sales by means of destructive innovations such as price cuts.