How do abrasives and small and medium-sized enterprises deal with the increasingly fierce competition?

Abstract With the rapid development and popularization of industry technology, the technology entry threshold of the abrasives industry has been decreasing. The production capacity and output of most products in the industry have been obviously surplus, and the supply has already far exceeded the expected market demand. The field is caught in fierce competition. in...
With the rapid development and popularization of the industry technology, the technology entry threshold of the abrasives industry has generally decreased. The production capacity and output of most products in the industry have been obviously over-supplied, and the supply has already far exceeded the expected market demand. More and more The field is in a fierce competition. How do SMEs take their way out of this cruel battlefield? It is the first issue for SMEs to consider.
First of all, let's first consider a few key questions: Which areas of the industry are full of competition? What are the means of competition? What do these ways of competition bring to the enterprise? Think about these problems and find a way out for SMEs. Good role.
The first question, what types of fields in the industry are full of competition? In fact, from high-end to low-end, there is competition in almost all areas, and the more low-end participants, the more intense the competition.
The second question, what are the means of competition? There are two general conditions: one is to improve the quality of products and meet the higher requirements of customers; the other is to lower prices and use low prices as weapons to fight against opponents. In general, high-end manufacturing tends to quality routes, and low-end manufacturing tends to price routes.
Why is there such a choice? To improve the quality threshold, the corresponding enterprises need to have strong technical strength, and this selection cycle is slow and slow, so the corresponding enterprises are required to have strong financial strength. This also determines that many companies do not have enough strength even if they want to adopt this strategy. Using price competition, the threshold is low, and the effect is fast. Many companies have to accept this strategy from the technical strength and financial strength.
The third question, what are the results of these two different strategies that will bring to the enterprise? Improve quality, create new consumer areas, expand customer base, raise the threshold of competition, reduce competitors, and thus increase profit margins. .
Price competition, in order to obtain more orders, further reduce profit margins, and even reduce costs can reduce product quality. On this road, only a very small number can survive, and those who can survive are those who use scale advantage to offset the decline in profits.
Let us look at the current situation of SMEs in the industry. Small and medium-sized enterprises have small scale, low capital, few personnel, relatively weak technical level, and resources that can be used are relatively limited. Does the SME have no way out?
Measures can be taken for business problems: one is route selection, and the other is specific implementation.
In terms of route selection: Given the relatively weak technical strength of SMEs, they can optimize their products, only do the best products, and invest limited technical resources in a relatively small range, thus forming quality differences with other competitive products. If the quality has an advantage, the product will use the corresponding high-end occasions, the market situation will tend to be benign, the corresponding competition will be reduced, and the profit will rise. Many unseen small and medium-sized enterprises in Germany and Japan are the practitioners of this route, from turning tools to fastening parts, from bearing balls to pen nibs, etc., in the field, they have been growing in the forefront. . Of course, this is just a skeleton of ideas. The market is changing rapidly. How to implement it on the basis of this skeleton needs to change from time to time and from situation to situation according to the specific situation at that time.
Specific implementation: it is to practice internal strength. Here are three more aspects. Hardware, software, and management.
1. Let's talk about the hardware first. Why do you mention the hardware first? Because this is the foundation, all the value is ultimately reflected in the output of the device, and all other work is attached to the device. Therefore, the equipment should not be too backward, at least to ensure that the production equipment can produce a large number of products that meet the technical requirements. In terms of hardware, in addition to production equipment, there are data information collection and processing equipment, which are used after docking with IoT technology. These devices, including sensors, data analyzers, etc., are extremely important and determine whether you are eligible to enter the market on future commercial battlefields.
2, about the software , because the use is not good, many companies do not value, or that did not attract enough attention. In general, many companies don't understand how software can play a huge role, just know that there are benefits, in the context of software promotion, follow the trend. Can you have a role to put aside, anyway, I have it, and there is no obstacle to communicating with customers. Two points have been neglected here. First, the power of software to work is greatly underestimated, especially in the collection and processing of data and information. Second, many companies are only equipped with software, but do not know, software Is a system engineering, how much software can play, depending on the person who uses it, whether the person using it has professional knowledge, systematic training without software, and other aspects of the software in which it is connected Supporting situation, whether the connection with the software is smooth.
3. Regarding management , this issue seems to be rarely noticed. In some small and medium-sized enterprises, due to the large number of things and relatively few people, the autonomy of each employee is relatively large. Under normal circumstances, the task can be completed according to their own ideas. However, once the company develops to a certain scale, the company begins to improve the system and enter the standardization stage. The company regards the regulatory process as a standard, often resulting in no matter how innovative the employee's ideas are, how efficient it is to solve the problem, but the employees have no right to speak, and the employees are more It is like a tool for performing tasks. I don't deny the necessity of regulations and processes, but in the process of learning the regulatory process from large companies, don't just focus on the form, not on the essence. The regulatory process ensures that many things are not problematic, but they also rigidify the organization, limiting efficiency and inhibiting the use of employees' intellectual resources. Large companies have the comparative advantage of human resources and market size, so solving the problems he faces, regulations and processes are more important, and his scale advantage can offset some of the inefficient processes. However, the problems faced by SMEs are definitely different from those of large enterprises, and there is no advantage of large enterprises. Under such conditions, it is hard to learn, and the name is advanced, which is obviously tied to his own hands and feet. SMEs have their own advantages, which is more flexible and faster. Don't lose, don't want to lose.
Don't tie your hands and feet like big companies. How to do it? Free the intellectual resources of employees in small businesses. Small businesses have fewer people and they have to be used as tools. That is a big waste. How to use it? The impermanence of the mountain is impermanent, as long as the goal of making full use of intellectual resources is determined. The specific form can vary depending on the situation.
Of course, in the face of how competition responds, not a short article can be written. Let's throw in the bricks and attract more people to think about sharing.

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