The existence of a reasonable LED display red sea VS blue ocean battle of survival

Hagel's philosophy in a sentence: the true saying there is reasonable. There are a lot of people misread, that the existence of things are reasonable, in fact, is wrong, Hagel's real intention is that everything is in line with the nature of things, rational things are real, but also reasonable. Borrowing in the LED display business survival and development of the road, that is, whether it is the red sea or blue ocean strategy, as long as companies follow the principles of market competition, are reasonable, it is understandable.

LED display enterprise survival status

Everything has a certain law of development, will experience from weak to strong, from prosperity to decline along the tortuous development process. LED display since entering China, has gone through the bud, rise, climax, smooth and other periods, is currently in the throes of transformation and upgrading, the market situation is quite grim.

As the industry concentration is not high, the market share is more dispersed, and the new influx of competitors, the market presents a homogeneous competitive landscape. In addition, with the intensification of market competition, product prices continue to decline, product margins continue to decline, the survival of enterprises increasingly stretched.

The collapse of the industry panic panic

At the end of June 2013, Shenzhen city has heard the news of the collapse of Optical Science and technology. It is understood that the light has been in a state of suspension in June 17th, and its legal representative Li Bin in the year June 8th will be unaccounted for, allegedly arrested by the Shantou police. Billion employees in the light of hundreds of thousands of dollars in wages, the payment of one or two yuan in arrears supplier, after the accident, a hundred employees of light technology began to set off a long and difficult career. This is the same as the end of 2012 great vision events, the big eye due to the payment of more than $seven thousand in arrears supplier and concern, the number of suppliers on behalf of the rights of many times, until now, there is still no conclusion of the more than and 100.

Since the 2011 junduoli collapse, LED display industry appears repeatedly collapse of the wave, don't let the industry worry. Once, a large field of vision, hoppt, yjg, billion light and so companies have is the LED display industry has the top students, reputation, no one had expected, hundred million yuan level companies such as even in times of crisis when there is no resistance.

In fact, the collapse of things almost every day on the stage, the countless unknown small manufacturers simply fall even if is a normal phenomenon, be not at all surprising, the development of discrete billion yuan enterprises is an industry but in the end they rangingand associated with suppliers, customers and enterprises have been implicated in the relationship and so on indeed, this effect can not be ignored.

Payment methods into business sensitive pulse

The collapse of major enterprises, the main reason is the unity of the triangle debt problem. Because the LED display products is the use of long cycle products, and manufacturing enterprises play a role of bridge between the terminal customers and suppliers, therefore, the balance of the line is extremely difficult to grasp, loan, the pressure of a very common phenomenon, whether listed companies or were not seen by the small enterprises, are able to escape the debt problem. Once the enterprise over use of financial leverage, then any risk is likely to destroy the entire enterprise.

It is understood that, at present, LED display payment method between the enterprise and the supplier for the periodic payment, monthly or even more than two months before the end of a quarter of the payment, cash in the way of cash. The manufacturing enterprises and customers in terms of payment, you want a one-time payment is also very difficult, so the formation of a layer of pressure between the three sides of the situation. Companies complain, said difficult to do business now, then orders it almost no profit, but also have to look forward to the product is no problem, can be successfully received your payment, with it being robbed and feel pity, is with a fishbone in the throat, tasteless gesture of feeling.

Business is difficult to do, the survival of the enterprise becomes full of danger. Most of the enterprises began to struggle and strive to find a way to survive. Among them, a small part of the enterprise on the difficulties, not only by the industry is not the atmosphere of oppression, but contrarian growth, steady rise in performance. The industry generally complained called difficult sound seems to be opposite, the same business in the meager profit, why their fate has not been implicated?

Some people say that this is the strength of their own strong, adequate funding, it was also said that they were lucky. No matter what kind of argument, we need to analyze their survival battle behind the secret sincere and earnest, by other ways to promote the development of enterprises and the whole industry grows.

The existence of a reasonable existence of the blue sea Red Sea showdown

Since 2011, the terminal price of LED display products began to plummet, full color LED display is encountered "waterfalls three thousand feet" of the price gap, in this invisible forced enterprises to reduce costs, reduce spending, or another way to innovation more competitive products, two survive this start.

Blue ocean battle hidden but beautiful spot

The blue ocean has been hailed as a high-end, ideal competition cradle, like a rich treasure, with much land and few people, is the enterprise for survival. The white hot competition of LED display industry urges enterprises to make great efforts in the development of new products and new channels. China optical photonics industry association LED display application branch chairman Guan Jizhen released the LED display enterprises in the field of technological innovation