Behind the LED industry chain competition "in life and death"

Introduction: the core of the industry chain competition is the demand response, the advantage is reflected in the total value of the lead. From a long-term perspective, the latter is more competitive.

Has the "survival of the fittest of the survival of the fittest in natural selection," said the lighting industry today, no longer stay in the stage of simple product competition, but rose to the level of industry chain competition. Channel and application side enterprises have the same confusion: LED how to do? As we all know, the product chain and the industrial chain has the essential difference: the core of the product chain competition is product integration, the advantage is reflected in the total cost of the lead. The core of the industry chain competition is the demand response, the advantage is reflected in the total value of the lead. From a long-term perspective, the latter is more competitive. Because the product chain competition is a certain enterprise as the main body, to achieve the integration of products. The industrial chain competition is based on cooperation, the whole industry chain to complete the response to demand. Wu said that the property of the industrial chain is required to transfer the function and value of each level must be efficient, collaborative, consistent premise, in order to achieve the maximization of the value of the whole industry.

Industry chain is not consistent, there is no substantive meaning of competitiveness

LED industry chain, the middle reaches of the technology can not be quickly and effectively converted into production capacity, leading to the downstream can not foresee the upper and middle reaches of technology, cost changes. The upper and middle reaches of the lack of understanding of downstream demand changes, resulting in innovation lag. Such a vicious cycle, resulting in the downstream can not accurately keep up with the technology, cost, demand change rhythm, which led to concerns about the channel, conservative orders, do not dare to do a lot of inventory plan. The upper and middle and lower down the risk resistance ability of the enterprise fight the enemy separately, and the channel in a wait-and-see attitude, in response to consumer demand by end enterprises unable to achieve fast and efficient. Therefore, the various sectors of the industry chain of technology, information, interests and other differences in the behavior of the status of a large number of inconsistencies in the industry, affecting the competitiveness of the whole industry chain members.

Application of the end of the enterprise and the channels of cooperation, to build a strong industrial chain competitiveness

The channel plays a very important role in the whole LED industry chain, industry value chain is the ultimate realization of the link, has the most direct experience for consumer demand, but the channel is also the whole industry chain for technology, management, cost control is the weakest link. Application side of the enterprise has the closest to the channel, the most closely linked to the advantages of the chain in the whole industry bear the role of a connecting link between the preceding and the following. Therefore, the application of the end of the enterprise and channel collaboration is the key to the whole industry chain consistent.

How to do vendors consistent? Wu Zhengzhe said that synergy is a mechanism and model, more competitive. Manufacturers to seek cooperation in the early stage, businesses need to have a sense of identity to the enterprise culture, including brand positioning, product positioning, business vision, goals, interests, and competition is to understand the way to be consistent, such as business strategy priority, operation mode, the consistency of a series of problems how the development of enterprises etc.. Post requirements specify their respective responsibilities and obligations, and go all out to bear, know each other in a process of continuous communication, cohesion work and the requirements of common ground, more.

The competitiveness of enterprises is difficult to resist the risk of a single industry low-spirited brought by the application end enterprise and channel coordination can see the industrial chain and the direction of development to reach a long-term cooperation agreement, to strengthen the ability of individual competitiveness and risk resistance.