Analysis of Differences between China's Hardware Industry and International Hardware

Experts predict that by 2020, the proportion of China’s industrial added value in the global industrial added value will increase from 5.72% in 2000 to over 10%; the export of manufactured goods will account for the proportion of global manufactured exports, which should be from 5.22 in 2000. % increased to more than 10%. At that time, China will also have a number of powerful hardware manufacturing groups, forming a number of distinctive and internationally renowned hardware manufacturing centers. However, now Chinese companies face challenges and pressures, and they must face up to the gap in the international market.

Technology At present, the design capabilities and level of multinational hardware companies and their processing methods are higher than ours. They have advanced design reserves, and we are short of funds and lack of technology.

The brand has entered China's foreign hardware companies and is internationally renowned as a multinational company. They have a good reputation and can provide users with high-quality products and perfect services. However, Chinese companies are more familiar with languages ​​and markets, and they are relatively aware of the cultural needs. Therefore, it is more likely to establish their own brands.

The service of foreign hardware manufacturers is based on the laws of the country where they are located. It never engages in a promise competition. The service is very standardized. It is not only not affixed with money, but also has the ability to profit, and uses economic means to promote the improvement of their service standards.

Funds Currently, it is difficult for China's hardware manufacturers to find funds. Even if they can finance, the scale is very limited. Some of them are even operating in debt. To be close to the market, they lack the ability to transform and the products are all on the same level. Therefore, the development of enterprises is difficult, often forced by helplessness and caught in a price war.

The size of the U.S. hardware tool market has a $40 billion market capacity. Such as the United States Schneider, is one of S&P 500 companies. Products include manual and power tools, automotive diagnostic and repair equipment, diagnostic technology and related products, widely used in automotive, aerospace and other commercial areas.

Strategic planning of world-class company products often gives a very clear impression. Many of our hardware companies have diversified strategies, and there is excessive competition at the same time. Many domestic manufacturers and brands do not have prominent main businesses, and their core competitiveness is poor. Therefore, production companies must be professional and must be leaders in the product category. Chinese companies are currently smaller in size and do not respond to all the necessary tasks. Instead, they should first do the best for a class of products.

Marketing management China's hardware business management model remains to be innovated, management experience, management tools, and management personnel all face challenges; market management, price management, and promotion management are all at a medium or medium-high level.

The demand for channels in the Chinese market itself is increasing. Many foreign companies come to China to produce. What they value more is the Chinese market. Most of the Chinese hardware makers are based on the domestic market. However, the domestic market is undergoing changes. The traditional big commercial trade unions, trade associations, Hualian systems and cross-border power systems are all economic associations, waste of resources, and high marketing costs. China's hardware exports account for only a few percent of the total amount. Expanding overseas markets is just the beginning. It is necessary to go global and lack the talents and trade experience of transnational elites.

Mechanisms Multinational corporations have established a modern corporate system with clear property rights and are operational. Even if our traditional hardware manufacturing enterprises are listed, there may be a strange circle, that is, enterprises operating in a standardized manner also retain traces and imprints under traditional management mechanisms, because they are all born out of traditional mechanisms. . Such mechanisms and traces restrict the exertion of competitiveness.

Scientific decision-making mechanisms Many people in the country believe that foreigners do not understand the Chinese market. In fact, foreign manufacturers will use high salaries to solicit local talents in China, willing to spend money on purchasing information, and establish effective information channels and rapid-response decision-making channels. The response of China's hardware to the market is often lagging, and we often lack decision-making and delays in business opportunities.

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