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Chinese cable industry how to build and enhance core competitiveness

Information Source:Henan Huadong Cable Co., Ltd  Release date:2014-06-04

The total output value of China cable industry for more than one trillion, so the market is large, but China wire and cable manufacturing enterprises have more than 7000, but because the concentration is not high, even in the first in the world to do case, local leading enterprises is still difficult to with international leading the anti scale. Obviously, the domestic cable industry still has a long way to go, there's a lot of work to do, with the merger and reorganization process continues to advance, with the survival of the fittest process accelerate ceaselessly, domestic may have a truly international leading enterprises. Of course, there is also an important premise, is to defeat those coveted Chinese market abroad cable production enterprises.

When it comes to mergers and acquisitions and the survival of the fittest, mainly because the local production of wire and cable industry was not standardized enterprises, malicious competition occurs frequently, which seriously hinders the cable manufacturers formal no mind to create or enhance the core competitiveness. Although the cable industry association has been advocating self-discipline, to avoid vicious competition, enterprises have made to self-discipline, but the fact is the self-discipline of enterprises very difficult to fulfill, present situation of excessive competition in the market does not change, industry wants the government through administrative intervention, suppression of malignant competition, at present, the relevant government departments have been tried, for example pay close attention to heavy penalties, strict, unqualified products, but also ineffective.

Market problems can only be solved by the market, only through full competition, the survival of the fittest, the workshop type businesses, with the ultra low price bidding enterprises, do not pay attention to the quality of the products of the enterprise, do not pay attention to cost management of enterprises, investment timing mismatches enterprises, do not pay attention to after sale service enterprises gradually eliminated by the market, thereby purifying the market order, the development of the China cable manufacturing industry sustained and healthy.

Whether domestic cable production enterprises bigger and stronger or the cable industry bigger and stronger, they cannot do without a truth: creating core competitiveness, enhance the core competitiveness. The reason is very simple, is the needs of the market, other manufacturers do not, and I can make it. Or other manufacturers products unqualified, I made products qualified. Or other manufacturers of qualified products is expensive, and I made products not only performance is good, quality is high, the price is also cheaper. This is the core competitiveness, and how to be able to do this, culture is mainly depends on the increase cost of research and development and talent.

All the time, Chinese cable manufacturing impression to the outside world is not high technology content, more than 80% of the competition focused on ordinary cable products, so that the market in low-end cable overcapacity, high-end cable products shortage phenomenon, the reason is the core competitiveness of enterprises is not strong China cable. Stage of development of each enterprise are different, so in the different stage, the different market environment, should build the core competitiveness of different. For example, in a relatively free competition in the market environment, the enterprise has just started when the competitiveness is the capability of quick response to market and commodity, service quality; firm performance stage, the most important thing is the quality competitiveness; to the development of enterprises, in addition to ensure that the quality of the competitive advantage, but also the innovation ability as the core competitiveness; if it continues to develop, a hundred years to do business, to the influence of enterprise culture as the core competitiveness of enterprises.

Enterprise capital rich can attract talents with high technology, improve the competitiveness of enterprises, will be based on the low cost, large enterprises can enhance the ability of innovation, to innovation as the core competitiveness of small enterprises, rely on imitation, with the flexibility to build the core competitiveness. For example, the Far East cable is set up research enterprise cable, national post doctoral research station, and increase with the Tsinghua University, Shanghai Electric Cable Research Institute and other units of the cooperation, the formation of a multi-level system of technical innovation, has developed a nuclear power plant with a special cable, the carbon fiber composite wire and other new products, the core competitiveness of enterprises constantly enhanced. To strengthen the introduction of talents, from the domestic and foreign famous university, scientific research institutes to employ a number of senior technical talents, management; and fostering enterprise technology backbone. This is a very worthy of reference, of course, is only suitable for those financed large wire and cable manufacturing enterprises.

But for those competitive advantage is not obvious, there may even cable production enterprise annexation and don't want to be merged, Baotuan heating is necessary. In fact, with the foreign giants have "invasion" Chinese, impact and huge to the local Chinese universal cable production enterprises, even if the cable production scale enterprises are squeezing may not, therefore, even large domestic cable production enterprises, also need to Baotuan heating, together with international cable giant.

In today's market environment, the domestic wire and cable enterprise must through the competition in order to survive, to become bigger and stronger. Whether local enterprises, or between domestic and foreign companies, is not only competition, more mutual cooperation in various forms in the. The cable has a serious surplus of production capacity, through the integration of the stock of resources, time and cost can be greatly saved development, the rapid formation of scale; at the same time can shorten product development time, talent and technology.

Finally, in addition to build and enhance core competitiveness, wire and cable industry upstream and downstream should provide support for the development of the cable industry. Such as cable is mainly the upper reaches of the copper industry, in recent years due to the high prices, to the development of the cable industry formed a great obstacle, directly caused by cable in high production costs, coupled with the fierce market competition, resulting in local cable market especially in the low-end market profit rate is very low. In addition, as the downstream cable industry such as electric power industry, new energy industry, the same should provide support. For the downstream, the biggest support is to change some unreasonable "despot clause". For example, the downstream upstream of the upstream price regardless of whether the change, even if is the upstream (cable industry) upstream (copper industry) to double the price, still in accordance with the requirements of the order price execution, which will cause the cable industry not only profitable may even do lose money trading. Therefore, the Power Grid Corp should change the bidding mode, improve the signed contract price of the cable, cable manufacturing enterprises to survive, otherwise it is to kill the people don't pay.

To make a long story short, wire and cable enterprises want to seek development, wire and cable industry want to grow, to build and enhance core competitiveness is the first factor. Whether through scientific compression cost or through increasing R & D investment or to attract top talent and so on, are feasible, but by the lowest bid price or even below cost price bidding, even as their core competitiveness, this approach is not desirable, to self destruct. In addition, the author also called for, the development and expansion of the cable industry cannot do without the downstream cable support, in fact, the cable industry expands, also means that the cable on the lower reaches of the strong, it will form a chain reaction.

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