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Equipment manufacturing enterprises need to "strengthen" and build core competitiveness

at the recent Yabuli forum, economists and entrepreneurs reached a consensus that China's low-cost advantage will gradually disappear in the next 10 years. The rise in labor prices, raw material prices and the appreciation of the RMB mean that the era of low-cost competitive advantage for Chinese manufacturing enterprises, which mainly rely on cheap labor, is coming to an end, and the foundation for building low-cost will disappear. It is a strange but thorny problem for made in China, who is used to relying on low cost and low added value to win, which requires enterprises to become stronger, not just bigger

back five years, at that time, almost all enterprises added four words to their development vision to become bigger and stronger, which is also the goal of every equipment manufacturing enterprise. The central enterprise integration policy issued by the Ministry of industry and information technology in the past two years promotes the integration and reorganization through the market + government model, and constantly promotes the birth of large groups and large enterprises. The original intention of these reorganization is to control market chaos and achieve efficiency improvement through large-scale operation. However, being big does not mean being strong. Now many enterprises are large, but they have not become strong after being large

in fact, after growing up, the problem of becoming stronger has become more urgent. Many enterprises are focusing on the problem of becoming stronger, and have upgraded our slogan of becoming bigger and stronger to become stronger and bigger

when formulating the 12th Five year strategic plan, many listed companies in the equipment manufacturing industry clearly put forward the proposition of how to become stronger, because they keenly felt that if they simply add between different businesses, it is difficult to form core competitiveness. Many leaders in the equipment manufacturing industry who plan ahead are trying to achieve synergy between different businesses, build overall competitiveness on the way of diversification, and regard strengthening as the core of development

stronger genes

so, how can we really be stronger? Looking at the pace of international business development and global equipment manufacturing industry, Chen Rui, a management consulting partner of zhenglue Junce, believes that strengthening should have three characteristics, namely, value creation, business collaboration and technological innovation. Among them, value creation is the overall performance of enterprises, and business collaboration and technological innovation are the driving forces of value creation

the ultimate goal of enterprise development is to achieve total return to shareholders (TSR), which is the primary indicator to measure the strength of an enterprise. 3. Adding accessories to the machine can also do steel pipe twists and turns experiments. Drucker clearly put forward in his early works that the goal of enterprises is to create profits. As an important part of society, enterprises inevitably bear the burden of society, and creating profits is the ultimate way to bear society, because profits represent the increase of social distributable wealth

when a stronger enterprise encounters development opportunities, its TSR is bound to be high, but when it encounters difficulties, its TSR can still maintain a reasonable level. For enterprises, if the scale is large, but the return rate is decreasing, this is not a strong performance, but a weakening effect. Take Cummins and caterpillar for example, even at the trough of the financial crisis, their TSR remained at a high level from 1992 to 2009, with 11.5% and 15.5% respectively

stronger companies have been constantly adjusting their management structure and value composition to cope with the changing market and turbulent situation. Just like an excellent boxer, they adjust their boxing speed and strategy in each round to win the initiative in the next step. In the Welch era, Ge maintained the optimization of business structure and realized value growth with one of the best strategies. Immelt also continuously adjusted the business structure after taking over, and carried out business divestiture, combination and repositioning for many times to obtain the best business structure. Linde forklift adheres to the high-end positioning and implements high sales prices, but spares no effort to reduce the total price of customers, so that the sum of sales price + maintenance price + service price is lower than that of competitors, and takes this as the starting point to continuously optimize the business and management coordination system

Chen Rui stressed that all enterprises that gain an advantageous position in the market basically have advantages that cannot be copied in a short time in technology, and stronger enterprises must have the technological dominance in some products and markets. Although the competitive position of many state-owned enterprises is declining day by day, the technical background accumulated in years of efforts has enabled them to maintain a certain position. And the newly emerging enterprises are bound to achieve innovation and breakthroughs in technology. Domestic loader products have been completely replaced by imports. The fundamental reason lies in the localization of hydraulic parts and engines, which directly promotes the development of domestic loader manufacturing enterprises. In the final analysis, technological breakthroughs have brought prosperity to the market

take Hitachi construction machinery as an example. It has been persisting in research, development and design throughout its development. Through innovation, product performance, quality and efficiency have been greatly improved. At the same time, it has expanded upstream and downstream, improved the synergy of the value chain, accelerated the process of internationalization, established and expanded overseas production bases, and established a pattern of taking Japan as the center and radiating overseas. During the rapid development of the 1970s, Its TSR exceeds 200%, which well explains the concept of strengthening

it is worth noting that from the middle and late 1960s to the 1970s, Japanese equipment manufacturing enterprises faced two oil crises successively, and encountered adverse factors such as rising costs and the appreciation of the yen. These situations are exactly the same as the current situation faced by China. However, enterprises such as Hitachi construction machinery have built a solid foundation for development through strengthening. The development path of Japanese enterprises is worth learning from

The research of American scholar William Hall shows that many successful equipment manufacturing enterprises choose one of the product differentiation strategy and cost leadership strategy, take corresponding measures and achieve success. Zuo Chuanhong, a management consultant of zhenglue Junce, suggested that both strategies should be considered if Chinese equipment manufacturing enterprises want to become stronger. There are two feasible directions: one is to improve the technical level through structural upgrading; Second, international development. Take advantage of lower costs abroad to maintain product competitiveness while expanding the global market. Industrial upgrading is achieved through continuous independent innovation, which promotes the optimization of product structure. The result of product structure optimization is that the proportion of high value-added products is greatly increased, and overseas markets are expanded, so as to improve profitability

in terms of research and development methods, Zuo Chuanhong believes that the current method is relatively applicable to materials: metal, non-metallic materials and other plates. Although attention has been paid to research and development and innovation for a long time, few have really been implemented. In the future, making R & d better serve the market will be the top priority of enterprise development. The practices of many enterprises in the United States are worth referring to, that is, first investigate the market trends, scientific and technological development trends, investigate the technical advantages and disadvantages of strategic business units, then analyze from the two dimensions of important markets and possible product technologies in the future, determine the key technical direction based on application, and finally strengthen the connection between R & D departments and business units to make R & d meet the needs of business units

at present, the R & D strategy of enterprises needs to be upgraded, which is not only to increase R & D investment, but also to formulate R & D strategy from the perspective of corporate strategy, which is market-oriented, eliminates the gap between research and application, accelerates the transformation cycle from science and technology to application, strengthens the cooperation between R & D departments and business units, and advocates customer driven innovation

Zuo Chuanhong said that in the past, we always thought that our horizons were not broad enough and we didn't seem confident. Now the opportunity comes. With the improvement of the country's comprehensive competitiveness and the accumulated manufacturing advantages, overseas countries continue to wave to us. Sany has set up factories in Germany and the United States, and Liugong has set up factories in India. The going out of these enterprises has not only won bursts of applause, but also received national support. Many enterprises have long tried to develop internationally, but they have been stuck in the stage of overseas distribution, mainly focusing on product export. They are secretive about the establishment of logistics centers, overseas subsidiaries, overseas factories, etc. this small step and slow-moving thinking mode needs a major change. Next, professional production and manufacturing centers should be established, and the heads of all lines should gather in one team to absorb high-level talents, And increase the construction of international talent echelons and Research on overseas policies

generally speaking, we are in an era of change and turbulence. Blindly expanding does not bring short-term and long-term advantages to enterprises, but also increases the difficulty of management. Next, strengthening should become the key proposition of enterprises. Enterprises should put the priority of strengthening ahead of expanding and choose to become stronger rather than bigger and stronger

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