LED "disruptive innovation": only the market does not seek profits?

"Our first strategy at this stage is not to pursue profits, the key is to expand the scale, the first occupation of the market, which is more important for the survival of enterprises. In an interview with reporters, a quite well-known in the industry LED lighting business executives so frankly. Perhaps this idea has more representative, in the current stage of development in the industry at the same time, which is accompanied with 2012, due to increasingly fierce market competition and the homogenization of serious phenomenon, many LED companies are actually in the face of the scale and revenue growth but profits shy predicament.

How to find a balance between the expansion of market share and enhance the profitability of enterprises, which has apparently become more and more entrepreneurs have to consider the issue. At present, on the one hand, the enterprise should avoid the risk of increasing the risk of inventory and capital, on the one hand, we must face the fact that the market is more and more high and the scope of the product is increasing. To the market, or to profit? It is a dilemma, "low margin manufacturing, can only earn a fee, even grab some market engineering had 'peibenzhuanyaohe"; and the pursuit of high margin, go and no amount of value-added route. "Recently, a standard enterprise 20% below all invited bid of a city street lamp replacement engineering enterprises caused by peer questioned, the company said the move will help enterprises to establish brand image, establish the status of the industry, but also help to strengthen the company in the future in other regions or provinces orders.

"The first to occupy the market after a radical price, mining profits, more companies weigh so choose, and this choice also means that the" price war "stage, and even become a lingering and must face the market competition of" universal form ", especially in the low-end price war is more and more fierce, and in in high-end integrated marketing, high-end customized to meet the needs of specific consumer groups, but this will spell spell system products, professional services.

While the more tend to the former domestic enterprises, "preempt the market" business philosophy has its truth: market share, is to have customers with sales, with the amount of profit or profit after the first volume, is the survival and development of the road. Of course, first, accounting for more than the market, also by strength, not blind expansion; in the premise of strength permits, a large area of the market, people gradually recognized the company's products, price system and so on, which means that the culture of their own customers, expand market channels, and then re do some profit operation. At the same time, such a strategy is also a radical price competitors out of the market, which means that companies have more potential for development.

However, this also means that this way, the enterprise must occupy the advantage in capital and scale, seem to be more suitable for some play the "everybody", further more, it is a comprehensive enterprise of products, channels, technology, capital, industrial chain integration capacity and operating environment can force test; cost control is the first priority among priorities, and the technical route will have certain forward-looking, "what route to go, how to go faster than, more critical. "

There are more well versed in the marketing strategy of industry veteran such recommendations: in the "preemption market" concept under the guidance of the price war, should be the competition means rather than purpose, is actually to Bipin product combination strategy of the enterprise, who is, who is the main knife products, who can best represent the brand image, to have clear and complete the overall layout, the overall goal is the winner of the competition. At the same time, the rapid response capability of the enterprise must have the market in the price war, the rapid changes in the technical scheme, the rapid price downward, the rapid increase in the stage of product competition performance, no one can guarantee that he can lead the way, once the cost and technical performance has been exceeded, will be in danger, entrepreneurs must have clear and decisive awareness of market competition, more than the "price strategy" for the development of more long-term thinking and wisdom.

In short, no preemption market or the pursuit of profit or one to become bigger and stronger, to create long-term brand enterprises will have higher quality must be down-to-earth and process technology, the most competitive products to the market, must establish its own characteristics and high technology content product system, and has a solid product strategy, only these truly recognized by the market, in order to realize their own rapid development, win more market share, enhance brand strength. Rather than blindly price cuts and other innovative means to take up the market to obtain short-term sales.