Opportunities And Challenges For Small And Medium-sized Enterprises in The Diamond Tool Industry

Since the opening of the market, the scale effect and price war formed by the shortage economy have been difficult to continue, the demographic dividend is disappearing, and the development of enterprises has reached a critical point.

 

Critical points include:

The development of diamond tools and diamond grinding wheel industry has formed a stable pattern.

There have been major enterprises sharing in the market of various products;

Stone processing category: mainly occupied by regional hidden enterprises;

Construction tools: divided by several large enterprises with established scale;

Ceramic tile processing: also basically by the formation of the scale of regional enterprises;

Mechanical processing: a variety of varieties, each occupy a small field together;

Geological engineering: It has also been divided by long-term professional companies;

 

Background:

A. International factors:

The European debt crisis, the slow economic recovery in the United States, the sluggish Japanese economy, emerging economies in trouble, the instability in the Middle East and the Arab Spring have caused a sharp decline in external demand, and the political atmosphere has made Chinese exports unpopular. The dollar is falling, export rebates are falling, exports are discouraged, competition is growing, and export profits are disappearing.

B. Domestic factors:

1) The whole society is in shortage of funds, the enthusiasm for economic expansion declines sharply, the market shrinks in stages, the debt default of enterprises is serious, the public power expands more and more, and the "care" for enterprises is more and more smooth, the national tax, the local tax, the management, the inspection, the industrial and commercial, the annual inspection, the economic inspection, the environmental protection, Environmental assessment report, anti-pollution supervision, technical quality supervision, product licensing, fire protection, labor security inspection, health department (occupational health), community park, traffic, public security, etc., any department or even a person in the public authority department can amuse you and disturb you. On the one hand, you are providing employment opportunities for the society, generating tax revenue for the government, and thriving the economy. On the other hand, you are being bullied by your provider without resistance. There is no dignity in small business except to put money in people's pockets and bow down and say 'thank you'. To exaggerate, small businesses are slaves to politics.

1. Staff salary requirements are getting higher and higher, housing prices and rents are also getting higher and higher, prices are getting higher and higher, and social living standards are getting higher and higher.

2. Product homogenization is becoming increasingly prominent, IPR commercial and technical infringement protection is in vain, trade malicious competition, sales methods emerge in an endless stream, and product prices fall like rockets.

Economist Professor Li Yining pointed out recently, what are the difficulties of private enterprises? It is not the rising cost of factors, nor the rise of the RMB exchange rate, the decrease of export orders, the easy disruption of the industrial chain, or even the difficulty in financing as everyone said, but the heavy burden of taxes and fees and social public relations costs: local miscellaneous fees are heavier than taxes, and the cost of social public relations is getting higher and higher.

In this context, the survival of enterprises is becoming more and more difficult, as diamond tools small and medium-sized enterprises how to do? Is it a struggle or a shutdown? What is the way forward? This is the burning question before us. "Can you stay in bed when the house is on fire?" .

 

Process curing:

"Solidification" refers to the practice proved effective at the current stage of the operating standards, the operation of people's behavior bond. The seemingly unrelated process between the upper, lower, and left sides is broken up, and people's consciousness and value orientation is integrated in the organization through cultural edification, and people's consciousness is cultivated as an education. Such "solidified ability" accumulates over time, imperceptible, and internal growth continues. Enterprises should carry out a large number of repeated analysis, verification, combination of internal operation, with very patient, scientific, effective, delicate and daily technological standards, standardized processes and cultural values to achieve, from order generation to batch shipment, from process standards to product packing, from the operation of various departments of the enterprise to the heart of mutual cooperation, from the operation of staff to staff responsibility.

Good at grafting, is to combine the good things of others delicately, into their own unique, very private attributes, no external shared things.

A "process" is an "organized" group of object-related activities that work together to create a result of value to the customer. In a process, all operations work towards an overall goal and strive to integrate together in a systematic way.

The process is often carried out by sound, profitable, soft-spoken companies. Glamorous companies pay less attention because they can make a living by being unique. In a highly competitive industry, it is not enough to make a company successful only by relying on the opportunity to make a profit. Only high-quality execution can do it. And all of these rely on high-quality processes and enterprises with excellent processes are the long-term winners, with reduced cost, improved quality, less time spent in production, customer satisfaction and continuous purchase intention.