Six main problems in the operation and management of LED enterprises in China

When the company began to take shape, the assets are expanding, these entrepreneurs have found that the future development of the LED industry is not clear. What should be investment epitaxy, chip, among the upper reaches of the industrial chain? Or investment applications, to the downstream extension of the industrial chain? EMC for boosting LED product line can not work? When will the large-scale replacement of indoor lighting come?

1 lack of strategy

Most of the leaders of the enterprises are confused about the future development strategy. At first, many companies are attracted by the huge market prospects of LED, and in China's industrial policy to boost investment in the LED industry. After several years of development, when the company began to take shape, asset expansion, these entrepreneurs have found that the future development of the LED industry is not clear. What should be investment epitaxy, chip, among the upper reaches of the industrial chain? Or investment applications, to the downstream extension of the industrial chain? EMC for boosting LED product line can not work? When will the large-scale replacement of indoor lighting come?

These problems reflect the development direction of high-speed growth of LED enterprises can not see clearly the next step, there are two main reasons: one is the current domestic LED industry from technology to management, which itself is less mature, external dependence is high; two of enterprises in the industry are lack of clear strategic goals and planning the influence of investment decision, policy environment and market effect is too large. Field survey found that, even if some enterprises have developed the appropriate development strategy, there are still many problems:

(1) the information is not sufficient, the strategy is not clear: because of the limited external information, it is difficult to fully consider the various factors affecting the implementation of the strategy. Therefore, the formulation of the strategy is relatively vague, only the general direction, there is no specific objectives;

(2) a strategy difficult to implement: the formulation of corporate strategy is regarded as the highest individual what managers, senior management personnel is difficult to participate in the strategy making process, leading to the understanding of the differences and difficulties in implementing strategy;

(3) the target, difficult to implement strategy formulation: lack of scientific methods, not only about the goal of the stage plan, therefore, the strategy to implement the final result management there is a huge deviation and the strategy;

(4) performance is difficult to measure: there is no clear strategic objectives, and therefore the lack of key performance measurement indicators (KPI), it is difficult to track and predict the progress of the strategy.

2 lack of understanding of the market and competitors

Another common problem of Chinese LED enterprises is that the OEM production mode is dominant, and the market and brand competitiveness is weak. The size of the enterprise is relatively small, the number of enterprises, whether it is epitaxial, chip, or packaging and application products, showing a market melee competition. The disorderly competition in the market has led to the difficulty of defining competitors, not to mention the analysis of competitors.

Therefore, many business leaders lack of detailed understanding and analysis of the competitive market in the development strategy, do not understand the market share and competitive position, do not understand the competition strategy, the customer needs and no change in scientific investigation and evaluation on business performance satisfied with themselves and their ratio, more than one year a good year, and the lack of comparison with competitors, not clear what is the focus of the gap between themselves and the improvement of the competitive ability, lead to stagnant.

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