Consideration on survival and development of diamond tool enterprises

I. Super hard material industry is one of the few industries in China whose manufacturing technology and product performance have reached the international advanced level.
1. The current price difference is determined by many factors such as market demand and enterprise scale. Low product price does not mean backward production technology and poor product quality.
2. Diamond saw blade is the product, and the most important attribute of the product is the use attribute. Therefore, the judgment of whether a saw blade product is high-end or low-end depends on whether it is sharp, safe and wear-resistant. If so, the product is high-end, not low-end because it sells cheaply.
3. Domestic enterprises making sintered saw blades, such as Antai Steel Research Co., Ltd. and Jiangsu Fengtai Co., Ltd., represent the advanced international level. Because of their long-term focus on a core business area, these enterprises have formed a very strong core competitiveness, and their products and processes are at an advanced international level. Only when this is clearly recognized can Chinese enterprises be confident and compete better in the international arena.
4. The level of domestic diamond tool enterprises is uneven, so we can not deny the overall level of the industry because of some enterprises with poor competitiveness.
5. At present, domestic enterprises have not reached the international advanced level only in a few fields such as diamond rope saw.
6. Generally speaking, the super-hard material industry in China is worthy of confidence and pride.

2. The diamond tool industry in China consists of many small and medium-sized enterprises, but there is no comprehensive, comprehensive and strong large enterprise.

1. China's diamond production enterprises have appeared 2-3 representative enterprises, but there are no very powerful and comprehensive representative enterprises or groups in China's diamond tool industry. Basically in the pattern of group male rule.
2. If three or four powerful diamond tool industry enterprises or groups can be formed in China, the overall international competitiveness of the diamond tool industry in China can be greatly improved.

 

3. International market: In developed regions and countries, the market pattern has been formed and relatively stable; In developing regions and countries, China's product growth is strong and dominant.
1. Overall, the markets of developed countries and regions are relatively saturated and the market pattern is relatively stable.
2. In developing countries and regions, Chinese enterprises can get better profits and grow into brands.

 

4. Domestic Market
1. After 2015, China's economy has entered a new normal. The domestic market has changed from a process of rapid growth to a process of "slightly stable" or "pullback development". But it continues to grow fast in some advanced areas.
2. Under the above circumstances, product structural adjustment will follow, and some backward enterprises will shrink or even die out.

5. Market Diversity and Internationalization
1. More and more Chinese enterprises are going to the international market. At the same time, extroverted companies are spending more time focusing on the domestic market.
2. Domestic diamond tool enterprises establish sales companies and production bases abroad, and cases of mergers and acquisitions of overseas companies are emerging. This fully demonstrates that more and more domestic powerful enterprises are participating in the international competition.

6. Brand Cultivation: Two Approaches to Brand Strategy: Shipbuilding and Borrowing
1. The so-called "ship building" means cultivating brand independently and "borrowing" means merging or purchasing foreign brands.
2. At present, it is difficult to cultivate the brand by shipbuilding in the markets of developed countries and regions. Because cultivating a brand requires proximity to customers, as well as a long period of time and huge capital investment, most of our domestic enterprises do not have such advantages.
3. In addition, the level of added value of products also determines whether there is an opportunity for domestic enterprises to cultivate brands (large-scale advertising).
4. At present, the examples of domestic enterprises merging and restructuring international enterprises have appeared widely, because domestic enterprises need brand and channel of international enterprises.
5. At present, there are many opportunities for such M&A and restructuring in the world. The cost of mergers and acquisitions and restructuring may be very low, but it is necessary to effectively integrate resources and inject new vitality into the international enterprises involved in mergers and acquisitions and restructuring.

 

7. The impact of Internet on traditional business model is an important opportunity for brand cultivation
1. Internet business model has two characteristics: one is flat, the other is personalized customization;
2. After the emergence of Internet model, it is an economical and practical way for domestic enterprises to establish and cultivate brands in developed countries and regions, and we need to pay attention to it.
3. Because of the increase of labor and management costs of domestic enterprises, it is impractical to emphasize that personalized customization will affect the profit level of enterprises.
4. Enterprises can consider the development way of "standardization --" intelligence --"personalization to overtake on bends.
5. Attention should be paid to the Internet model but not superstition.

8. Price Competition: Price competition is a double-edged sword, annihilating the enemy 1,000 and causing 800 losses.
1. Nowadays, more and more domestic enterprises begin to enter the international market, and price competition is one of the effective magic weapons. Price competition plays a great role before the market has not formed a stable pattern. But once the market pattern is formed, the effectiveness of price competition begins to decline.
2. In the circumstance of limited total market demand growth, abuse of price competition may put the whole industry into a dilemma.
3. Every product should have a fixed gross margin. If "price competition" can not bring huge sales increment to the company, it will be disadvantageous to the company.
4. With the total market demand unchanged, the decrease of product price will result in the decrease of total industry. The decline in total industrial output will affect all aspects of the industry, and no one can be left alone.
5. The double-edged sword of price competition must be used carefully.

9. Technological progress and production automation
1. Technological advances constantly change people's ideas and production automation is the only way.
2. The first step in innovation and technological progress is to achieve a breakthrough in concept.
3. In the near future, more and more new products breaking through the old concepts will appear.

10. Survival and Development: Boat against the Current, Step Forward or Step Back
1. Only with continuous R&D investment and innovation can we remain invincible in the market competition.
2. The diamond tool industry has entered a stable development period from a period of rapid development. When the stable period is reached, the total demand of the market will be in a stable range. In this limited market demand, the requirements for survival and development are the same for enterprises. If they do not develop, they can not survive. Every enterprise must have crisis awareness.
3. As long as there is excess capacity, the industry will not stop price competition. Low prices of traditional products are an inevitable trend. Therefore, in order to survive and develop, enterprises must develop new products and fields.