LED "destructive innovation" means take the market is not desirable
Our first strategy at this stage is not to pursue profits. The key is to expand the scale and occupy the market first. This is more important for the survival of enterprises. In an interview with reporters, a well-known LED lighting executive in the industry is so frank. Perhaps this concept has become more representative in the current stage of industrial development. At the same time, with the fact that in 2012, due to increasingly fierce market competition and serious homogenization, many LED companies are actually facing scale and revenue. Growth but the shame of profit.
How to find a balance between expanding market share and improving corporate profitability? This has obviously become an issue that more and more entrepreneurs have to consider. At present, on the one hand, enterprises must avoid the risk of increasing inventory and capital risks, and on the other hand, they must face the reality that the market demands higher and higher products and the scope of choice is increasing. To market, or to profit? It seems to be a dilemma, low gross profit, can only earn a manufacturing fee, and even grab some market projects have to lose money to earn money; and the pursuit of high gross profit, take the value-added route, and can not get up. Recently, a company that won the bid for a street lamp replacement project at a price lower than all the bidders 20 has caused peers to question. The company said that this move can help companies establish a brand image, lay a position in the industry, and help strengthen the company. The ability to take orders in other regions or provinces in the future.
First occupying the market with aggressive prices, then mining profits, and making more choices after more companies weighed, and this choice also means that price wars debut, and even become a ubiquitous and must-see market competition. In particular, the mid-to-low-end price war is more intense, while the mid-to-high end will be based on integrated marketing. High-end customization will better meet the needs of specific consumer groups, but it will be a product and a professional system service.
For domestic enterprises that tend to be more like the former, the business philosophy of pre-empting the market also has its own reason: first possessing the market, it is to have a customer base, own sales, and to profit or profit first, The way to survive and develop. Of course, preemptive, more market, but also by strength, can not blindly expand; under the premise of strength, after a large area of ​​market, people will gradually recognize the company's products, price system, etc., which means that they have cultivated themselves The customer base has expanded the market channels, and then on this basis, we can do some profit-seeking operations. At the same time, such a strategy has also pushed competitors out of the market at aggressive prices, meaning that companies have gained more potential for development.
However, this also means that by choosing this road, enterprises must have an advantage in capital and scale. It seems to be more suitable for some people who can afford it. Further, this is also the integration of enterprise products, channels, technology, capital and industry chain. The comprehensive test of capacity and business environment shaping ability; cost control is the top priority, and the technical route must be forward-looking, and what route to go is more critical than how fast.
There are also some industry veterans who have deeper marketing strategies to suggest that the price war under the preemptive market concept should be the means of competition rather than the purpose. In fact, it is to compete with the product portfolio strategy of the enterprise. Who is the sharp knife product and who? It is the main force, who can best represent the brand image, and has a clear and overall layout, and the overall competitive goal of the company is the winner. At the same time, enterprises must have the rapid response capability of the market in the price war. In the current stage of product technology rapid change, rapid price decline, and rapid performance improvement, no one can guarantee that they can lead all the way, once the cost and technology If performance is surpassed, it will be in danger. Entrepreneurs must have a clear and decisive sense of market competition, and they must have a longer-term and smarter development thinking than price reduction strategies.
In short, whether it is the market first or the pursuit of profit, a company that wants to become bigger and stronger and build a long-term brand must bring its products with higher quality, process technology and most competitive products to the market in a down-to-earth manner. The product system with high technical content and the three-dimensional product strategy, only these can be recognized by the market, can achieve their own rapid development, and ultimately win more market share and enhance the brand strength of the company. Instead of taking advantage of disruptive innovations such as price cuts to capture the market and obtain short-term sales.
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