Analyze the market strategy of China's hardware companies

In recent years, China's hardware and tool companies have greatly improved their equipment levels and imported a large number of high-end digital tools for special equipment. According to customs statistics, from 2010 to the first half of 2012, the cumulative import volume was close to 2,400 units. Among the enterprises that import these equipments, foreign-owned companies, joint ventures, and Chinese tool companies each account for about half. Nowadays, the equipment level of many domestic key enterprises has basically been comparable to that of counterparts in developed countries. As a result, users often ask such questions: The equipment conditions of Chinese tool companies have improved, but there is still a big gap between them and foreign counterparts in the supply of high-end tools. What are the reasons?

The question pointed out sharply that the bottleneck of China's development of business-end tools. In the last ten years, domestically-made high-efficiency cutting tools have started from a very low starting point, have grown and improved year by year, and the results are obvious. At the same time, through the practice of the past ten years, the majority of tool companies have finally realized that the development of modern and efficient cutting tools will not be possible if they only rely on improving the level of equipment and manufacturing capabilities without simultaneously improving the comprehensive development and service capabilities. The modern high-efficiency cutting tool market can only be a bit of an import substitute, at best, and can hardly increase market share. Therefore, we must clearly understand that the lack of comprehensive capabilities to provide extended services to users is a major gap between China's tool companies and foreign advanced standards and must be resolved.

What are the biggest obstacles to changing the product structure of China's tool companies from the change from rudimentary to pioneering and innovative? Practice has proved that it is not an objective material condition but an ideological concept in which the operator sticks to convention.

At present, most of the tool companies in China still rely on the production of traditional standard tools used in the low-end manufacturing industry. This production and operation method enables enterprises to truly compete in the market and does not establish the concept of manufacturing to improve efficiency. Therefore, only by completely changing this concept of inaction can we truly enter the development path of modern and efficient tools.

The first lesson in the entry of traditional hardware tools companies into the field of efficient tool development is to completely change the status of doing nothing for decades, starting from the initiative to track and understand market dynamics, and closely integrating the market positioning of enterprises and their own capacity building. Solid and do a good job in the development of modern efficient tool. This is a required course for success.

Some old multinational tools companies in developed countries have a long history (for example, Sandvik has 150 years of history, Kennmetal and OSG have nearly 80 years of history), but they are still not conscientious enough to work hard, are committed to innovation, and spare no effort to track user needs, optimize target markets, and Improve enterprise construction and unremittingly pursue higher development goals. After the international financial crisis, there have been many uncertainties in the development of the global economy. Various multinational tool groups have conducted investigations and studies on the recovery and development prospects of different economies and manufacturing industries, adjusting target markets and development strategies.

Take KennmetalGN Co., Ltd. and HISGlobalInsight, a famous industrial consulting company, to study the changes in the post-crisis manufacturing market as an example to introduce how the multinational tool group can track market dynamics, adjust development strategies, improve the operation of the company, and develop new development space. The results of the investigation and research made Kennametal convinced: After the crisis, the development of its main target market is still very large, and the growth potential of the major industries in the next five years is also very impressive, which greatly encouraged the confidence of the company’s leadership in the development prospects. The survey also found that from a global perspective, the growth rate of emerging economies (Farewell to China) will greatly exceed the developed countries in Europe and America in the next five years, so the focus of market development should shift to Asia and China.

According to the results of the survey, the president of Kennametal Corporation re-adjusted the target market and development strategy for advantageous industries and advantageous geographical areas. In accordance with the new development strategy, it will also adjust the technological innovation focus of the enterprise contracting, optimize the operation and management system, and restructure the sales network. Through a series of in-depth and meticulous work and correct and timely strategic and tactical adjustments, Kenneth has achieved sales returns to pre-crisis levels and profit margins exceed the crisis in the face of instability and uncertainties in the global economic recovery process. The first 37% of the impressive performance Of course, with the current level of development of China's hardware tool companies (including Zhuzhou Diamond, China's largest supplier of numerical control tools), there is still a big gap between this type of multinational tool group and Kenna. . But this does not prevent us from learning from their tireless pioneering and innovative spirit.