SWOT analysis of the status quo of international marketing of LED lighting fixtures in China (three)

(four) threat (Threat)

Organic is dangerous. China's industry is faced with great development opportunities, but also faces threats from all aspects.

1, the global economy has not yet warmed up

After the global economic and financial crisis in 2008, the world economy is generally weak. Due to the uncertain economic situation, enterprises have doubts about the future of the market, so many LED projects in developed countries have been off the assembly line, on the other hand, Chinese enterprises due to weak foreign market and the impact of RMB appreciation of the channel, a sharp decline in the number of foreign trade orders. Therefore, the uncertainty of the macro environment, so that the future market demand for EDL lighting cast a shadow, the development of the industry did not achieve the desired speed.

2, the impact of trade barriers on exports

In recent years, developed countries such as the United States, the European Union, Japan have introduced a series of LED lighting technology, quality directives and bills. The existence of non-tariff trade barriers, to a certain extent, affects the LED lighting enterprises to control production costs, limiting the development of foreign trade business.

3, raw material prices, product price advantage will gradually reduce

China consecutive years of rising prices, the impact of LED lighting fluctuations in raw material prices, production costs are increasing year by year, product price advantage will be gradually reduced, the industry profit margins facing challenges.

4, the industry technology update speed, it is difficult to maintain the technical advantage

With the LED lighting chip gradually mature in technology, more and more high quality, more and better packaging technology, LED lighting price downward trend, while the decline in prices will inevitably lead to the immaturity of the LED lighting market competition more chaos. LED lighting related enterprises must increase investment in research and development, the application of new technologies, efforts to improve product quality, improve product added value, so that enterprises occupy a place in the international market.

5, excessive government support led to disorderly competition

In order to develop the green industry, governments at all levels have introduced too many supportive policies. These policies are attracting more and more enterprises to enter the industry, and strive to share a cup of soup. But the market demand is limited after all. Economics shows that when the market into the buyer's market, the market competition will become more intense and even into disorder. The government excessive investment behavior and policy support, to enter the capital market wind investment gold, the LED market has attracted over into the enterprise, for example, in the past three years there is no less than a photoelectric Industrial Park is known as their "national and global maximum". This leads to sharp decline in business interests too. The causes of this phenomenon is that the government does not encourage two-way, which only encourages the supply side, and have no incentive to demand side, which did not encourage use of lighting, did not cause the market demand expansion, but caused overcapacity.

Government support for the industry can not be sustained, only in the early stages of industrial development to encourage, when the industry entered the mature period, the government's policy will withdraw. There are too many such cases, such as wind power, home appliances to the countryside, etc.. When the government's policy to support the abolition of the capital market or venture capital divestment, companies will face enormous pressure, and some will even hold on, resulting in a large number of corporate bankruptcy. Therefore, the government led to excessive support disorderly competition, will cause a lot of waste of resources and energy, even those in the fierce competition to win to stay in the enterprise, but also because of excessive consumption competition, can improve the quality of development in the international market competition, will eventually defeated.