Analysis of internal and external policies and com

2022-10-20
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Analysis of internal and external policies and competitive advantages and disadvantages of China's wire and cable industry

wire and cable, as the main carrier of power transmission, is not only affected by domestic and foreign policies and raw material prices, but also because it is widely used in power, construction, automobile, communication and other industries, and is inevitably closely related to the development of these downstream industries. As the main carrier of power transmission, wires and cables are not only affected by domestic and foreign policies and raw material prices, but also because they are widely used in power, construction, automobile, communication and other industries, but also inevitably closely related to the development of these downstream industries. The policy and competitive advantages and disadvantages of China's wire and cable industry are analyzed as follows

domestic and foreign policies

in recent years, the state has vigorously carried out urban power construction, agricultural transformation and the construction of urban rail transit, and promulgated a number of favorable policies. The development of these industries will bring a large number of orders to the upstream wire and cable manufacturers. At the same time, due to the high fire caused by the quality of wires and cables, in order to prevent the recurrence of major accidents, the state has increasingly strict control over the wire and cable industry and product standards, and new technical standards have been introduced. For more information, please refer to the analysis of the development environment of China's wire and cable industry in 2015

in foreign countries, on the one hand, the export volume of China's cable industry is large, and it is also greatly affected by the policies of international economic organizations; On the other hand, the endless anti-dumping investigations have also had a very adverse impact on China's wire and cable manufacturers

competitive analysis of wire and cable industry

objectively speaking, although the total output value of China's wire and cable industry has jumped to the first in the world, there is still a lack of technical content. It is precisely because of this that we see that some high-end markets in China are occupied by foreign enterprises, especially some special cables with high technical and technological requirements still need to be imported from abroad. Among them, we find that the proportion of foreign-funded enterprises in China is gradually increasing. Although China's demographic dividend has been receding and the human cost has been increasing, many foreign enterprises are still cutting their heads to enter the Chinese market to occupy China's vast high-end market

looking at the current high-end market in China, nexen, birelli from Europe, Guhe and Sumitomo from Japan all account for a considerable share in China's cable market. According to relevant institutional statistics, foreign-funded enterprises have more obvious advantages in the high-end product market. From the perspective of future development, the demand for cable products from all walks of life will develop in the direction of high performance and high quality. If domestic enterprises want to gain a foothold in the competition of international enterprises, they must gradually narrow the gap with world advanced enterprises in product performance. Obviously, product performance is the fundamental and core competitiveness for foreign cable enterprises to take root in China. If Chinese local wire and cable enterprises can master the core technology, they will occupy a more favorable advantage in the next competition

in China's wire and cable industry, the absolutely leading enterprises in the industry include several famous multinational companies, as well as leading companies in the domestic cable industry, such as nexen in France, Prysmian in Germany, general cable in the United States, Sumitomo cable in Japan, LG in South Korea, etc; The second group is an enterprise that is in a leading position in the cable industry, but has a certain gap compared with the leading enterprises, as well as an enterprise that has a certain monopoly advantage in some product fields, such as far east cable, Shangshang cable, Hengtong cable, etc. The third group is other enterprises that lack characteristics and competitiveness, and is also the vast majority of small and medium-sized cable manufacturers in China

at present, due to the large gap in technical quality, production capacity and production scale of domestic cable manufacturing enterprises, in addition to stealth materials, the competition is becoming more and more intense under the low-level competition, and the price war has been very common, which has led to the decline of product quality. Moreover, such a phenomenon is only malicious competition in the middle and low-end market. To put it bluntly, it is our own people who fight our own people, which has no threat and impact on foreign-funded enterprises in the high-end market. Therefore, in the face of fierce market competition and the middle and low-end market with declining profit margins, manufacturers in the cable industry should reduce costs in various ways, control fixed expenditures, and strengthen the development of new technologies. Enterprises with strong technical force and good product quality in the wire and cable industry will be in a favorable position in the future competition. Only in this way can we realize the transformation from the low-end market to the high-end market, so as to get rid of the problems of malicious competition and low profit margin

in addition, wire and cable enterprises must correctly recognize that quality and technology, marketing, raw materials, and internal management are the most important factors that determine the competitiveness of enterprises. Driven by the needs of various industries, it has become an inevitable trend for wire and cable products to develop towards high quality and high technology. If an enterprise can gain advantages in product technology, it can stand out in the low-level price war. When the product supply exceeds the demand and the product performance and quality are similar, the marketing method has become an important factor to determine the competitiveness of enterprises. Enterprises with smooth marketing channels and better services in all aspects can obtain certain advantages in the fierce market. In addition, in the case of a sharp rise in the price of raw materials, which enterprise can reasonably avoid the risk of rising raw material prices, will be able to obtain a huge advantage in production costs, which has a very important impact on the competitiveness of enterprises whose precision values can reach a maximum of plus or minus 0.5. The methods to avoid the risk of rising raw material prices include hedging, signing flexible contracts with customers and other methods. Finally, in the case of similar raw material costs, which enterprise can make efforts in internal management, reduce production costs and improve product performance and quality by improving the level of pipeline error, then it can gain an advantage in the fierce market competition

the future development of China's wire and cable industry can be described as a long way to go. Although it has achieved rapid development in the past two decades, compared with Japan and South Korea in Europe, North America and even Asia, although the output value of China's wire and cable industry ranks first in the world, it is still in the primary stage of development due to the lack of technological advantages, process advantages, talent advantages and other reasons, which means that the local wire and cable industry, There is still a long way to go in the future, and the competition will be fierce. Moreover, the pattern of China's wire and cable industry is bound to change in the future, especially with the acceleration of mergers and acquisitions, which will change the situation of low concentration of China's wire and cable industry. Coupled with the continuous improvement of relevant rules and regulations, China's wire and cable industry will enter a new blue ocean of development

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