â–¡ Zhao Zhishun China's screen printing and signage industry has flourished under the spring breeze of reform and opening up. The ups and downs of the industry's enterprises are all accompanied by fierce market competition. Studying the form of enterprise competition and exploring the road of enterprise development will undoubtedly benefit the survival and development of enterprises.

Since 007, Guangdong has received 35,000 export enterprises with low labor costs and low-cost resources, and many textile companies in the Yangtze River Delta are also struggling to survive. Faced with the severe situation of rising oil prices, labor, and environmental protection costs, these enterprises urgently need to undergo structural adjustments, from low-cost competition to high-tech competition. The embarrassing situation of export enterprises with low-cost competition is enough to wake us up to consider the transformation of the company's future competition.

The advantages and disadvantages of low-cost competition are the low-cost competition, that is, the known product price is obtained by participating in the bidding of the product order at a price lower than the original price or not knowing the product price, and obtaining the production order by participating in the bidding with lower product production cost + lower processing profit. The way of competition.

In the early days of reform and opening up, due to the low cost of raw materials and labor in China, the prices of online printing and signage products were mostly formed under the conditions of planned economy. This created new low-cost competition for market-based signage companies in the market competition. condition. Since emerging companies have no historical circumstance, there is no constraint on resource utilization and employment distribution, so the production cost is much lower than that of similar old enterprises. Relying on low-cost competition, emerging companies quickly occupied the low-end screen printing and signage market and achieved lucrative profit returns. The small and medium-sized screen printing companies in Jiangsu and Zhejiang provinces have sprung up like mushrooms. 1 985 years ago, the company where the author is located is profitable every year, and the small days are very moist. In 1986, it was in trouble due to the price hikes of copper and aluminum.

In that hard day, all the screen printing companies that produce "big road goods" products are in the same vein. It is reasonable to say that the price of materials has risen, and the price of screen printing products should rise. However, due to the lack of competitive advantage of enterprises, they can only support the scalp and give up the initiative to adjust prices.

In a certain economic environment, low-cost competition is an effective way to quickly compete for the market, but this method is at the expense of profit. In the long run, the company loses its profit support and loses its competitive advantage, especially the external environment causes production costs. After rapid growth, the disadvantages of this competitive approach to risk resistance are fully exposed. In 2007, the author's company, due to the continuous rise in raw material prices, the price of some vehicle signage products has been declining year by year, and some product cost and price inversion problems have emerged. This is the bitter fruit of long-term low-cost competition.

In the new economic environment, the support of low-cost competition for entrepreneurship is also declining year by year. In 2007, the author compared the entrepreneurial situation of two small signage enterprises in Nanjing: A company was founded in 1996, and quickly entered the market for signage of agricultural vehicles with low-cost competition when entering the market. Achieve scale production and accumulate expanded production conditions. The B company was founded in 2002. When it first entered the market, it still adopted a low-cost competition method. It also won a part of the signage market, and its annual sales also rose to about 500,000 yuan.

However, due to the increasingly narrow profit margins of signage products in recent years, enterprises have been unable to withstand the pressure of increasing production costs year by year. After five years of entrepreneurship, they are still in dire straits. The reason why the former succeeds is to occupy the time and place; the latter is because the environment has changed, but the competition for enterprises has not changed. Under the new historical conditions, enterprises only realize the transformation from low-cost competition to high-tech competition as soon as possible. Pedestrians crossing the street, please cross the street bridge sy: smoking can get rid of the predicament and create a better tomorrow.

The high-tech competition in the high-tech competition of the screen printing companies is imminent, and the bow is on the strings.

The first is that market competition is not equal. The market for screen printing and signage products is now relatively transparent, and the influence of administrative means and relationship marketing on product prices is getting smaller and smaller. In plain language, there are more bones and less meat.

In particular, the screen printing products obtained by the bidding method, the products with low technical content and large road goods, the price competition is very fierce, and sometimes even unprofitable. Coupled with the rising prices of raw materials and the inability to adjust product prices, manufacturers will find it difficult to make a difference. Therefore, in order to maintain and expand its own product market, it is necessary to form a competitive advantage as soon as possible, and achieve a shift from low-cost competition to high-tech competition. If your product has high technical content and unique advantages, others will not be able to compete and be difficult to replace. You can make my product pricing as the master, "Let the wind and waves, sit on the fishing boat."

Secondly, the development of enterprises is not equal. The development of enterprises cannot be separated from the appreciation of capital, and the appreciation of capital must depend on the growth of profits. If our company adheres to the strategy of low-cost competition after the external economic environment changes, it will weaken the profitability of the enterprise and delay the development of the enterprise. As we all know, high-tech competition has always been the commanding height of high profits. Take the 3M company products familiar to the screen printing industry as an example. The price of double-sided tape for vehicles is generally higher than the price of similar products by about 90%. The price of light-white self-adhesive materials for vehicles is generally higher than that of domestic similar products. More than double. This price difference, although including quality differences, is most importantly the difference in profit formed by high-tech competitive advantage. Even in the case of the continuous decline in the exchange rate between the US dollar and the RMB, the price of 3M products is still rising in reverse. The reason is that 3M has a high-tech competitive advantage and is not afraid of market competition for similar products. It is reported that 3M's annual investment in research and development accounts for about 7% of operating income, and these costs will become an important part of product prices, and ultimately consumers will pay. 3M Company is using high-tech competition form to create and develop the market. High investment, high output and high profit make it embark on a virtuous cycle of development.

Once again, the external competitive environment is not tolerable. In recent years, the rise in oil prices, labor, and environmental protection costs have caused great changes in the operating environment of screen printing signage companies. Especially for companies that serve the automotive industry, the pressure to cut prices has already pushed the company out of breath. Not only that, but these companies also face the pressure of competition in the same industry. Competition is like "besieged city"

In the same way, the people inside are crushed to think of it, and the people outside are still coming in. This double pressure has led to a significant decline in the economic benefits of a considerable number of enterprises. In 2007, the author conducted a survey on a medium-sized signage enterprise. The sales revenue of the company in 2007 and 2004 did not change, and the number of personnel decreased by 5%, but the profit fell from more than 800,000 yuan in 2004 to a loss of nearly one million yuan. The reason: Although there are reasons for the aging of production technology and the lag of new product development, the average increase of raw materials for production in the past three years has been more than 20%, and the average price of major products has fallen by more than 10%, which is the most direct loss of profits from enterprises. the reason.

The transformation must face the dilemma as soon as possible, and our business must change as soon as possible. Change, there will be vitality, change, and hope. We must be soberly aware that the transition from low-cost competition to high-tech competition is not a simple matter. It will face one painful process after another. The most painful time will be the restructuring of the enterprise’s resources, which will be the enterprise. Can you break through the top priority? Because of the restructuring, some products and technical processes of the enterprise will be eliminated, and some employees will lose their jobs; because of the restructuring, the new combination of people, finances and materials of the enterprise will break the original possession mode; because of restructuring, the enterprise will Inevitably, turmoil will occur, and interests will be redistributed; because of restructuring, enterprises will enter new fields and re-encounter the hardships of starting a business. But no matter what, the machine can't be lost, the time is not waiting for me, and the change must start as soon as possible.

Changing the concept and enhancing the sense of urgency Although China's screen printing and signage companies have a long history, they have not formed a scientific and advanced management model. The family-style management style in the industry is relatively common, and the sensitivity to new ideas, new ideas, and new technologies is not strong enough. The idea of ​​small wealth and security is relatively strong, and the motivation for making bigger and stronger is not enough. In the face of the grim reality of corporate competition, change must begin with ideas. We must abandon the old concept of Xiaofu and An'an, establish a new concept of pioneering and enterprising; abandon the old ideas of inheriting the father's business and close relatives, establish a new concept of big talents, big market, and survival of the fittest; In the old concept of the status quo, the past and the past, establish a new concept of self-pressurization and the pursuit of excellence; abandon the old concept of maximizing immediate interests, establish a new concept of sustainable development; abandon the "stable peers, peers, imitation of peer products" The old concept is to establish a new concept of taking the initiative to attack and dare to be the first. Changing attitudes can promote us to form new thinking, seek new ways, create new methods, and further enhance the sense of urgency and responsibility for revitalizing enterprises. When we found that there were ambushes before, and there were soldiers after the war, who could still be indifferent and steady on the fishing boat, and practiced physically and improved the speed of the telecentric train, all relying on the headband. The mental outlook of business leaders will directly affect the mental outlook of employees. If our business leaders have the "charm of personality", his staff will sincerely support him and follow him with sincerity; if our business leaders lack the "charm of personality", employees will hate and alienate him; if our Business leaders are addicted to enjoyment and become increasingly “corrupted”. Employees will disperse sand, or invest in their own good, confluence, or find a way out. The power of role models is endless. Whether business leaders can practice themselves is not only the personal cultivation of leaders, but more importantly, the demonstration of employees. In the process of implementing the strategic transformation, if the company is strong, the business leaders should be self-reliant.

Technological innovation and expansion of new advantages and technological innovation capabilities are not only an important indicator of the comprehensive strength of enterprises, but also a prerequisite for the transformation of enterprises from low-cost competition to high-tech competition. To be successful, it is impossible to have a good wish. It is necessary to do it with real knives, work hard on the word "create" and make a fuss about the word "new". Therefore, we must not only have scientific planning, but also have a detailed goal. We must not only dare to invest capital and manpower, but also be good at investing capital and manpower. We must not only persist in fostering strengths and circumventing weaknesses, but also annihilate the war of annihilation;

The history of the development of screen printing signs has long proved that an enterprise with backward economics and technology, a company that always walks behind others, can only look at other people’s faces and let others slaughter. Only by persisting in innovation, innovation, and innovation can we truly establish new energy and new advantages for enterprises to participate in market competition.

Scientific combination, accelerating the new transformation of enterprise operation requires a combination of various resources. To participate in the competition of the first level, it is necessary to carry out a higher level of "cultivation." In the process of transition to high-tech competition, companies will invest more capital and talent. To achieve fast investment, investment, and investment, it is necessary to make a scientific combination of resources. For example: what target is selected and the resource allocation to achieve the goal; the ratio of technology innovation capital to the company's sales; the input and treatment of innovative talents; the effective connection between existing technology and new technology; the current quality of employees and the future The matching of technical competition needs, etc., needs to be achieved through a scientific combination. In particular, small and medium-sized enterprises, with a weak foundation and lack of funds, need to be more careful and spend their money on the cutting edge. Therefore, we must make the transition to high-tech competition as a systematic project, scientific planning, scientific combination, people to do their best, and make the best use of it. Not only that, but once we achieve a phased goal, we must carefully summarize, fill in the gaps and start a new round of optimization and combination. Only in this way can our company maximize its energy and open up new markets and create new achievements.

The survival of the fittest, the survival of the strong, and the survival of the fittest are important rules for market competition. The transformation has begun, and there is no turning back. It is hoped that more screen printing and signage enterprises will realize their development towards faster, stronger and higher goals as soon as possible, and step into a healthy, stable and high-speed improvement.

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