the cement industry is declining and market competition is fierce. Zhang Zhenkun, CEO of Asia Cement (China) Holding Company, predicts that the cement industry will be in a difficult period in the next ten years. Two-thirds of the cement enterprises will be eliminated, and only the remaining one-third will be able to eat the cake. Zhuge Wenda, chairman of
Hubei Century Xinf eng Leishan Cement Co., Ltd., said that in the market competition, some large enterprises hope to eliminate small enterprises through price war, but small enterprises can not be killed.
So, in the context of the market downturn, what are the advantages of small businesses? In the
face of fierce market competition, enterprises with strong competitiveness and rapid response to the external environment can win the future. Large enterprises have the advantages of capital and scale, but also have the problems of long decision-making cycle and slow response speed.
On the contrary, small cement enterprises have a short decision-making chain, which can quickly respond to market changes, flexibly adjust product structure, service mode and even business direction to meet the rapidly changing market demand.
Intensive cultivation of their own "one mu, three parts"
small cement enterprises tend to focus more on specific regional markets, and have a deep understanding and accurate grasp of the local policy environment, infrastructure construction, market demand and so on.
They can provide targeted products and services to meet the personalized needs of "one mu, three parts of the land", and establish a deep customer relationship and good reputation. In the face of fierce market competition, large cement groups may not be able to compete with small cement enterprises that occupy a good regional market.
Small enterprises are also rich
. In the past few years, all cement enterprises, regardless of their size, have eaten the dividends of the times. In other words, they have made a lot of money. As a result, every enterprise has the courage to cope with the cruel market competition at a time when industry profits have shrunk dramatically.
Zhuge Wenda has cited as an example that if a small enterprise has accumulated 500 million yuan in history, even if it loses 20 million yuan a year now, it will take 25 years to exhaust the accumulation of funds, and the biggest loss in the price war is precisely the enterprises with good benefits.
Generally speaking, facing the severe market situation, small cement enterprises need not be pessimistic and desperate.
On the contrary, we should actively explore and give full play to our unique advantages, with flexibility, precision and innovation, to survive in the cracks, to seek breakthroughs in adversity, and to seek opportunities in challenges, so as to gain a firm foothold in the cement industry and win our own place.
