How to create a good CPP market competition enviro

  • Detail

How to create a good CPP market competition environment

after more than 20 years of reform and opening up, China's economic system has completely transitioned from a planned economy to a market economy. With economic globalization and the successful entry into WTO, China has rapidly integrated into the international market system. Therefore, China's industrial enterprises are facing a broader marketing market, but also ushered in greater challenges and a more difficult market competition environment. How to create a good market competition environment, guide enterprises to fully adapt to the domestic and international market competition mechanism, and enhance the competitiveness and viability of enterprises, requires operators to establish a correct business strategy under the guidance of national departments and industry associations

first, CPP market

at present, China's CPP market is mainly in the Pearl River Delta and Yangtze River Delta, and thus radiates to the whole country. In 2004, the annual CPP production capacity of the country was nearly 420000 tons, and the total market demand was about 280000 tons. In 2005, with the large investment of domestic casting lines and the production of imported new lines, there has been a trend of supply exceeding demand. A price war has been fought among enterprises in the industry. In addition, affected by the international market, the supply of raw materials is tight and the price soars. CPP industry began to have zero profit breakeven operation, even negative profit operation. It is expected that in the next few years, with the capacity growth rate of CPP far greater than the demand growth rate, the market competition will become more severe, resulting in the "shuffle" effect of industrial restructuring and the survival of the fittest

II. Production and operation

at present, domestic CPP production enterprises can be divided into large group companies with an annual output of more than 10000 tons; Medium sized enterprises with an annual output of more than 5000 tons and small individual companies with an annual output of less than 2000 tons. Due to the great differences in economic strength, production scale and business philosophy, they have adopted different strategies in market competition. General large group companies pay attention to brand effect and are easy to occupy the high-end market. While establishing their own brands, medium-sized enterprises must also adopt flexible business methods to try their best to seize the high-end market while taking into account the share of the middle and low-end market. Small companies generally take the low-end route and seize the low-end market at low prices. As large group companies are supported by strong economic strength, they conduct large-scale operations. So as to achieve the effect of low cost, and can at any time adopt the business strategy of small profits but quick turnover. Due to its small scale, good flexibility and low-grade route, the costs of production, marketing, development and management of small companies are inevitably lower than those of other large and medium-sized enterprises. Therefore, these two types of enterprises must be the first to launch a price war in the market competition. Medium sized enterprises follow the example of large group companies, pay attention to brand effect, have standardized management, considerate service, complete departments, and high operating costs. However, due to its limited economic strength and small production scale, its profit space is limited, resulting in its worst competitiveness in the price war

III. competition

under the condition of market economy, the great power of economic profits can be fully reflected. Interest stimulates investment and demand catalyzes production. As long as it is profitable, there is capital investment; As long as there is demand, producers will organize production in time and quickly form a production scale. At present, the CPP industry has temporarily entered a competitive situation where production exceeds demand and supply exceeds demand. Raw materials are in short supply, prices are rising, and CPP market demand is weak. It is difficult to transfer the pressure of rising costs by raising prices in the industry. As a result, the cost of materials is getting higher and higher, the price of products is getting lower and lower, the marginal profit of the industry is decreasing, and even some enterprises have vicious competition of zero profit operation. Therefore, how to create a good CPP market competition environment is particularly necessary

although under the condition of market economy, competition must be carried out according to the development law of market economy, we can still do a good job in the following aspects under the care of the government and various departments and the coordination and guidance of industry associations, actively coordinate the interests of all parties, and create a good competitive environment. Avoid the bad phenomenon of zero profit in domestic operation and sanctions on foreign sales

1、 National macro control and Industry Association guidance: in the country "The new generation of engines need to be able to withstand the continuous high temperature pressure. Under the guidance of the macro-control policies and objectives, the industry association should actively do a good job in coordination and publicity, guide the enterprises in the industry to expand production reasonably, control production capacity, and avoid unlimited production expansion and other blind investment of social capital contrary to the national macro-control.

2. Scale and brand creation: at present, the CPP industry has: in terms of scale, there are large sets with an annual output of more than 10000 tons Group companies, and the smallest is only a domestic line, with an annual output of about 1000 tons of small companies; In terms of product quality, there are also different levels, and advantages and disadvantages coexist. When supply exceeds demand in the market, it is often the low price sales of small companies that trigger a price war. Due to their different inputs, production costs and business ideas, a vicious cycle of competition and bargaining will inevitably occur, which will eventually lead to losses and serious damage to the vitality of enterprises in the industry, affecting the sustainable development of the industry. In addition, China's reform and opening up and its successful entry into WTO have gradually transformed the domestic market from a closed type to an open type. The raw material price of CPP closely follows the price change of the international oil market, and the market will inevitably be directly impacted by the investment or products of foreign multinational companies. Therefore, the state and industry associations should advocate enterprises to establish a business strategy of large-scale, superior, competitive quality and brand creation

according to the characteristics of the current rapid development of science and technology and the international and domestic competitive situation faced by China's CPP industry, drawing on the successful experience of the development of foreign small and medium-sized enterprises and the development history of the domestic household appliance industry, the ultimate development direction of CPP production enterprises is to integrate into the comprehensive group company of flexible plastic packaging. Use the financial resources and human resources of the enterprise group to realize scale operation by expanding the scale, realize a leap in product quality through scientific and technological innovation, and establish a well-known brand of the enterprise. So as to reduce the dispersion of resources, make enterprises realize the transformation from low-level management to high-level standardized management, from inefficient inferior enterprises to efficient superior enterprises, and make a leap from a multinational group that can only adapt to general domestic market competition to a multinational group that can adapt to both domestic and international markets and two kinds of competition at the same time

3. Industry regulations and industry access system: with the support of government departments, industry associations formulate and revise all product quality standards in the industry, and assist government departments in regular or random inspection and supervision. The development trend of nylon board to curb the decline of enterprises ① the market demand for high-strength and high-rigid nylon is becoming larger and larger, non-standard production, and disorderly price competition in the market due to the impact of inferior products is reduced. At the same time, it can also optimize resources, improve utilization rate and avoid wasting national resources. Form a reasonable cost accounting method in the industry, and stipulate the selling price or price difference of products of different grades and brands. Formulate industry rules with the support of government departments, and stipulate the rights and obligations of enterprises in the industry to abide by the rules. Formulate standards and requirements for entering industry associations

4. Market development: supply exceeds demand is only a relative term for the market supply and demand at that time. To create a good CPP market competition environment, in addition to controlling investment and standardizing the market competition mechanism, in the face of the rapid development of productivity, the best way is to expand the demand for 320 sound-absorbing materials and components and explore new markets. At present, although the CPP industry is facing the pressure of oversupply and sudden price competition, we should see that there is still a huge market to be developed at home and abroad. Therefore, we should encourage domestic large enterprise groups to use their own strength and brand advantages to rush out of the country and explore the international market. In view of the huge domestic market to be developed, the world has come to China to look for business opportunities. There is no reason for our CPP industry to turn a blind eye and remain indifferent. At present, CPP is mainly used in food and medicine, but rarely in industry and agriculture. The rapid development of modern light and light industries and electronic information industries require a large number of packaging materials. The agricultural packaging materials market of 900million farmers is a huge potential market. According to statistics, in 2004, the packaging quality of agricultural products in China was poor and the technical content was low, resulting in more than 30%. 3. The damage rate of independent operation can be achieved

in short, to create a good CPP market competition environment, we must do a good job in the reasonable control of production capacity, and guide the expansion and reinvestment of the industry under the precursor of national macro control; Formulate industry rules, standardize the market competition mechanism, make enterprises in the industry obtain reasonable profits in the competition, and ensure the driving force for the sustainable development of enterprises. Encourage enterprises to actively explore new markets, absorb the pressure of rising production capacity, and avoid vicious market competition when supply exceeds demand

source: Zhongshan Zhongsheng packaging materials Co., Ltd

Copyright © 2011 JIN SHI