Paint companies can use five strategies to tide over difficulties

China Coatings network
: Today's
coatings
industry: market chaos, product homogenization, operating costs continue to rise. These lead to
coatings enterprises
pressure to survive. In such a situation, the major paint companies want to tide over the difficulties, in the fierce competition to stand out, generally can use the following five strategies.
is of great strategic significance to the current Chinese paint enterprises to develop high value-added products. It can improve the strategic awareness of enterprises, can improve the level of intensive management of enterprises, can improve the international competitiveness of enterprises, can improve the domestic market share of enterprises, can improve the economic efficiency of enterprises.the
regional development strategy refers to the coating enterprises according to the internal and external environment of the enterprise, as well as the analysis of the different regional markets facing the enterprise, determine the development mode, clear the key development areas, determine the key development areas and non-key development areas of the development strategy and development measures, put forward the regional arrangements for the regional key construction projects in the near future. The formulation of regional development strategy is in fact a high-level, global macro-planning based on regional development conditions, the requirements of further development and the development goals. It is an important and decisive plan for the analysis and judgment of the overall development of the region. At its core is to address the region's basic development goals and ways to achieve them over a period of time.
high returns from product differentiation, which can be used to deal with supply-side pressures while relieving buyer pressure. When customers lack choice, their price sensitivity is low. "Finally, companies that adopt differentiated strategies to win customer loyalty are better positioned than their competitors when faced with the threat of alternatives." Achieving product differentiation sometimes contradicts striving for a larger market share. "It often requires firms to be prepared for the exodivity of this strategy, i.e. it cannot be balanced with increasing market share." More generally, activities that establish differentiation are always costly.
If the differentiation strategy is successfully implemented, it becomes a positive strategy to achieve high levels of return in an industry because it establishes defensive positions against five competing forces, although its form of defence differs from cost leadership." Experts believe that the implementation of differentiation strategies sometimes contradicts efforts to gain a larger market share. "The implementation of differentiation strategies often requires firms to be prepared for the exodivity of the strategy." "This strategy cannot be balanced with increasing market share." "There is always a high cost associated with the creation of a firm's differentiation strategy, and sometimes not all customers will be willing or able to pay the high prices demanded by the firm, even if customers across the industry are aware of the firm's unique strengths."
cost leadership strategy, also known as a low-cost strategy, is perhaps the clearest of the three common strategies. Under the guidance of this strategy, the enterprise decided to become a low-cost production manufacturer in its industry. Enterprises have a wide range of businesses, serving multiple industrial sectors and may even operate businesses belonging to other related industries. The business surface of paint enterprises is often very important to their cost advantage. The sources of cost advantage vary according to industrial structure. They can include the pursuit of economies of scale, patented technologies, preferential treatment of raw materials and other factors.
its low-cost position translates into high returns when the price of a cost-leading company is equal to or lower than that of its competitors. "Although a cost-leading enterprise relies on its cost leadership to gain a competitive advantage, and to be a superior to the above-average economic performance, it must obtain an equal or approximately value advantage over its competitors on the basis of a unique product." The success of a cost leadership strategy depends on the skills of the enterprise to actually implement it day in and day out. Cost leadership is not the same as the lowest price. If paint companies fall into the lowest price, and the cost is not the lowest misunderstanding, in exchange for pushing themselves into an endless price war. Because, once the price is reduced, competitors will also follow the price reduction, and because it is cheaper than their own, so there is more room for price reduction, can support a longer price war.
cost leadership strategy and differentiation strategy for the entire coatings industry, industry-wide activities. "A focused strategy is one that focuses on a specific objective and requires more efficient services than competitors." Once the company has chosen the target market, it can form a centralized strategy through product differentiation or cost leadership. That is to say, companies that adopt a focused strategy are basically special differentiation or special cost-leading companies. "Because of the small size of such firms, firms with centralized strategies are often unable to differentiate and cost-driven approaches at the same time."
If a company with a centralized strategy wants to achieve cost leadership, it can establish its own cost advantage on specialized or complex products, which are difficult to standardize production, and it is not easy to form economies of scale in production, and therefore difficult to have the advantage of an experience curve." "If a firm with a centralized strategy is to differentiate, all differentiated approaches can be used to achieve the desired objective, unlike a differentiation strategy, where the firm is competing with the firm with the differentiation strategy in a particular target market rather than with its competitors in other market segments." In this regard, the focus of the company because of its narrow market, can better understand the market and customers, to provide better products and services.
In short, for the current paint industry, enterprises only through some strategic adjustments, in order to obtain good benefits in the fierce market competition, in order to ensure the strength of enterprise development, in the market to gain a firm foothold.