Analysis of Competition Situation of China Wire and Cable Industry

1. Analysis of competition pattern of state-owned, private-owned and foreign wire and cable enterprises

At present, China's wire and cable industry, foreign-funded enterprises occupies a considerable proportion. Nexans, Pirelli from Japan, and Furukawa and Sumitomo from Japan all have a considerable share in the cable market in China. The advantages of foreign-funded enterprises in the high-end product market are even more pronounced. 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 companies want to gain a foothold in the competition of international companies, they must gradually reduce their product performance to the world. The gap between advanced companies.

In the competition among domestic enterprises, private enterprises have obvious advantages compared with state-owned enterprises. Most of the private enterprises are relatively new enterprises, with low operational burdens, flexible operations, and rapid development. In contrast, there are many state-owned enterprises and old factories in the wire and cable industry. The burden on all parties is heavy and the overall lack of innovation and development awareness. Businesses often have a disadvantage in competition.

2. Analysis of the competition pattern of the first, second and third camp enterprises

In China's wire and cable industry, the absolute leading companies in the industry include several well-known multinational companies and leading companies in the domestic cable industry; the second group is a leader in the cable industry, but with leading companies. Compared with companies with certain gaps and companies that have certain monopolistic advantages in certain product areas, the third group is other companies that lack characteristics and competitiveness.

The first camp - foreign capital: Nexans, Pirelli, Sumitomo, Furukawa; domestic: Pou Sheng, special change Luneng.

The second camp - New Far East, Shangshang, Hengtong; Zhongli soft cables in special fields.

The third camp - other companies.
3. The main methods and strategies of competition

On the whole, there is a big gap between the technical quality, production capacity, and production scale of domestic cable manufacturing companies. Under the situation of low-level competition, competition is becoming more and more fierce. The price war has become very common, and this has led to a decline in product quality. In the face of fierce market competition, manufacturers in the cable industry should reduce costs through various methods, control fixed expenses, and strengthen the development of new technologies. Companies with strong technical strength in the wire and cable industry and good product quality will be in a favorable position in the future competition.

Judging from the various factors that currently affect the competitiveness of wire and cable companies, quality and technology, marketing, raw materials, and internal management are the most important factors that determine the competitiveness of a company.

(1) Quality and Technology

Driven by the needs of various industries, the development of wire and cable products toward high quality and high technology has become an inevitable trend. Which company can gain advantages in product technology can then stand out in a low-level price war.

(2) Marketing

In the case of oversupply of products and similar product performance and quality, marketing tools have become an important factor in determining the competitiveness of enterprises. Companies with smooth marketing channels and better services in all aspects can gain certain advantages in the fierce market.

(3) Raw materials

In the case of sharp increase in raw material prices, which companies can reasonably avoid the risk of rising raw material prices, they can have a huge advantage in production costs, which has a very important impact on the competitiveness of enterprises. Ways to avoid the risk of rising raw material prices include hedging and signing flexible contracts with customers.

(4) Internal Management

In the case of similar raw material costs, which companies can work harder and harder in internal management, reduce production costs and improve product performance and quality by improving the management level, then we can gain an advantage in the fierce market competition.

At present, China's leading companies in the wire and cable industry are located in Jiangsu, Shandong, Anhui, Guangdong, Zhejiang and other provinces, and are mostly regional brands. China's territory is vast and high transportation costs have become a major obstacle to the infiltration of wire and cable manufacturers across the country. In recent years, some large-scale enterprises in the wire and cable industry have begun to focus on capital operation methods such as mergers, acquisitions, and restructuring, and gradually established a nationwide industrial layout. At present, the competition in the wire and cable industry is still at a relatively preliminary stage. It can be predicted that with the gradual development of the industry, some rules and regulations will be increasingly perfected, and the wire and cable industry will gradually increase its production and market concentration.


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