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The harsh reality for middle enterprises

1. Due to the repeated COVID-19 and the war between Russia and Ukraine, the global economy continues to be depressed, and it is difficult to see a good turn in a short time.

2. Domestic GDP growth decelerated, and real estate enterprises closely related to ceramics are facing a crisis, on the one hand, the enthusiasm of the auction decreased sharply; On the other hand, affected by funds, pre-sale housing can not be delivered on schedule, delayed delivery or even rotten end situation may appear;

3. In many domestic industries, there are business difficulties, frequent wage cuts and layoffs by enterprises, sharp decline in ordinary people’s income and sluggish consumption;

4. In the face of the changing market situation, the competition strategy of various industry leaders distributed in the home furnishing industry has gradually transformed from the internal competition to the pan-home furnishing industry competition.

5,The top enterprises use their own brand, channel, capital, capacity and other advantages, use the price killer, make full use of low-price products to reduce dimensionality, eat up the middle enterprise market share.

6. Bottom enterprises give full play to their own advantages such as localized production and service, non-compliant costs, refined market segmentation, flexible sales policies and other advantages to resist the crazy attack from the top and waist enterprises.

7. The continuous price increase of raw materials and energy leads to high production costs.

 

The Way to break out of encircled of Middle Enterprises — Differentiation strategy facing mass market

Breakout Direction 1:Break a new path

Middle enterprises can make full use of the advantages of rock plate, grasp the research and development of rock plate processing capacity, to provide consumers with the whole house or local customized services.

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Breakout direction 2: cost reconstruction

If the middle enterprises, through the regional investment classification, reconstruction of the customer’s cost of building stores, and eventually achieve the flag is also possible.

 

Breakout direction 3: Differentiated product portfolio

Avoid cost disadvantage and avoid head-to-head price wars with top companies. It is to fully explore or establish the enterprise competitive advantages such as product design, texture, performance, service and other advantages. And these competitive advantages for centralized promotion or differentiation combination.

The core of differentiation strategy is innovation. There are five ways of innovation, namely product innovation, technology innovation, market innovation, resource allocation innovation and organization innovation.

A few suggestions for middle enterprises

1. Build confidence

2. Stable operation

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3. Strategic patience is required

4, To ensure the stability of the basic disk


Post time: Sep-01-2022