Support LED "Eight Route Army" contend "group army"

In the process of merger and acquisition of the LED industry, some LED companies have formed a larger scale, and we call it "group army"". In contrast, in the LED industry chain around, in various regions of the eight party, there are still many of the Eight Route Army, they are small and medium-sized small and micro enterprises.

I do not know when, I do not know who is under the conclusion, there is always a point of view that the Chinese market does not need so many LED companies, in order to explain the LED industry mergers and acquisitions and closures. The Chinese market does not need so many LED companies, the first is the LED small and micro enterprises, equal to the death penalty for them. This view is wrong! This erroneous view only to see the number of mergers and acquisitions and the collapse of the surface, did not grasp the nature of industrialization, misleading caused excessive panic in the industry!

Big business group army envy, but small businesses, the Eight Route Army also has its own advantages. As a number of large enterprises Mister LED said, business bigger to a certain scale, it is more difficult to develop. Not as easy to develop small businesses. Small business scale is small, easy to find a gap in the market gap, the accumulation of strength gradually grow; small business size, flexible manner, the ability to respond to changes in the market strain, strain fast. "

In fact, as long as the combination of their own reality, strategic positioning accurate, proper use of tactics, large enterprises group army and small businesses, the Eight Route Army can play a beautiful battle. Big fish can eat small fish, however, the "Eight Route Army" victory over the "army" is not very clear in the history of China?

Part 1 group army to seize market opportunities

In recent years, LED companies have taken a variety of ways to snatch market share, large-scale enterprises with technical advantages, cost advantages to seize a larger market share. The formation of a certain scale enterprises, its advantage is that the anti risk ability of enterprises will increase, therefore, whether it is the integration of cooperation between the upstream and downstream enterprises, or horizontal mergers and acquisitions, is to expand the scale of the production capacity.

Scale also drive cost down. In the cost optimization is particularly important today, LED giants have adopted large-scale production methods to small profits to the extreme. LED industry is gradually moving towards the era of meager profit. In fact, a truly mature industry, profit is a norm, the profits of a business, not to earn profits by, but by many of the so-called profit Many a little make a mickle., economies of scale.

However, large enterprises can not blindly optimistic about their scale, to correctly understand the scale". Scale is not only large volume, but also a high technology, industrial diversification, product multi series, high quality, good service". At the same time to expand the scale of production, we should constantly enrich the product line and optimize the upgrading of product technology, in order to stabilize the customer base, to maintain and enhance their market position.

Part 2 the Chinese market does not need so many LED companies?

First, the Chinese market does not need so many LED companies, this sentence is a specific use of the environment.

For example, in the field of chips, we want to make high-quality, the world's leading position in China, the only large-scale, strong technical ability to do a good job of large enterprises.

Second, the number of enterprises in the middle and lower reaches of the LED industry chain should be Pyramid type, the number of enterprises in the middle reaches of the upstream and downstream, more than the middle reaches, so that the Pyramid based LED industry is a solid foundation, stand up.

With the development of LED technology, LED will be more and more popular, the application of LED will be more and more, the LED segment of the market will be more and more, so no need so many LED enterprises ", instead, the downstream applications of LED will be more and more enterprises.

Third, LED industrialization is not only measured by the number of surviving enterprises.

(1) in the process of the survival of the fittest in the process of industrialization of LED, there will be a phenomenon of bankruptcy, which is the "bad" enterprises, that is, they have lost their innovation ability, can not keep up with the development of enterprises. Please note that the "innovation, can not keep up with the development of the market," rather than the size of enterprises! If you lose innovation, can not keep up with the development of the market, even the big companies will collapse! On the contrary, if the market trend, small businesses can keep up with the wave of industrialization!

(2) the final result of the "survival of the fittest" of LED industrialization is the advanced technology, wide application field, high quality of products and services in the LED industry. This is not to say that only a small number of enterprises survive! As a simple example, if there are 3 children, can not be the 3 children are good children? As long as the market can survive. Or above that sentence, if you adapt to market trends, small businesses can also keep up with the wave of industrialization!

Here, to solve the problem is: how can small businesses to adapt to market trends? Large enterprise group army with a large scale to seize the initiative, then small businesses, the Eight Route Army by virtue of what?

Part 3 "eight army" personalized game

LED large enterprise group army scale, small businesses, the Eight Route Army can be personalized, flexible. As long as the right concept, the right way, small businesses can find their own path of rapid growth.

First, no doubt about the future.

(1) the "survival of the fittest" is not equal to the "size"". Competition between enterprises has never been more than the size of the game, the competition for enterprises