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Economy

How to resolve the "internal competition" of private enterprises due to severe price pressure and plagiarism?

2023-08-23   

"At present, what do you think is the biggest difficulty. In the context of private entrepreneurs, internal competition is essentially a form of "vicious competition", mainly reflected in serious price suppression, plagiarism, malicious poaching, and other aspects. The increasingly fierce internal competition has become a difficult dilemma for private enterprises, especially small and medium-sized private enterprises that are not "chain owners" in the industrial chain. How to solve difficulties? This is a topic that private entrepreneurs are currently contemplating and exploring. Yan Fei, an associate professor in the Department of Sociology at Tsinghua University, believes that the best way to crack internal exams is to pursue differentiated competition. That is, participants showcase their strengths and beauty, allowing the resource space to be opened up. We must 'jump out'! "The chairman of several private listed companies is unwilling to have such internal friction. On them, the reporter clearly felt a sense of wanting to break away from homogenized melee and seek new space. The biggest characteristic of the industry now is internal competition, which is getting more and more complicated! "Wang Jiasheng, Chairman of Lushan New Materials, spoke quickly and shook his head repeatedly when discussing the current situation of his industry. Starting from scratch, Lushan New Materials has caught the fast track of industry development and grown into an invisible champion in the field of adhesive material segmentation. The downstream application fields of the hot melt adhesive material industry are extensive, and with the rapid development of industries such as new energy, optoelectronic displays, and composite building materials, the current scale of the hot melt adhesive material industry is still continuously expanding. In 2022, Lushan New Materials continued its high growth trend in revenue, achieving a revenue of 2.618 billion yuan, a year-on-year increase of 54.63%, setting a historic high. However, the company's net profit experienced a year-on-year decline. One major factor is the decline in sales prices of the company's solar cell packaging film products. In addition to cyclical fluctuations in related industries and raw material costs, industry insiders have intensified price wars, leading to thin profits. It is reported that in the new energy industry chain, although the overall market demand is still growing, there are too many competitors rushing in. In order to obtain business, some companies dare to do it without making money or even paying a fee. The business logic behind it is to first defeat competitors, then earn the money that cycles up, and then run after earning a wave. There are still many people who want to make 'fast money' and don't really want to invest, "said Su Zhi, the chairman of Fangbang Group, putting aside the materials on his hands and discussing his" troubles "when asked about the industry's internal competition. Our research and development achievements have broken the monopoly and we need to participate in global competition, so we have applied for many patents, Compared to developed countries, the protection of technology and invention patents in China is relatively limited. Many domestic peers have been staring at you, and after you have invested a lot of manpower, material resources, or financial resources to develop results for a long time, you will come to plagiarize, poach people, and poach teams. Soon, there will be some homogeneous products in the market, and the price competition will become increasingly fierce. Moreover, there are more and more competitors More covert means to 'dig the foot of the wall'. A bitter smile, Su

Edit:Hou Wenzhe Responsible editor:WeiZe

Source:Shanghai Securities Daily

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