Analysis: competition structure and Countermeasures of stainless steel gate valve manufacturers in 2016

In 2016, the market of stainless steel gate valve in China has improved, which makes many manufacturers see the opportunity to switch to the gate valve industry. In this way, the competition of stainless steel gate valve manufacturers in our country is more intense, which has certain universality and representativeness. The main trend is: the globalization of product development, with strong integration as the strategic direction. With the economic globalization, the owners of new management technology and manufacturing technology will gradually compete for the new market, penetrate the existing market, and focus on low-cost, high value-added products to start the valve brand. Take high, new, sharp and market optimization as the basis of competition; Nowadays, people in the industry are very clear that the bidding stage will be forced to withdraw from the competition stage if the bidding cost is too high. Therefore, we can only increase the market share of products, improve the quality and reliability of products, and form scale effect to reduce costs and improve competitiveness.

In the face of some new enterprises entering the industry to participate in the competition, they will bring new production capacity and demand for resources and market, which may lead to the increase of production costs, the intensification of market competition, the decline of product prices and the reduction of industry profits. The potential threat of potential competitors depends on the degree of barriers to enter the industry and the reaction of existing enterprises within the industry. The higher the degree of barriers to enter the industry, the more intense the reaction of existing enterprises, the more difficult it is for potential competitors to enter or do not want to enter, and the smaller the threat to the industry. Barriers to entry are:

Brand loyalty. Product image or brand loyalty established through long-term advertising or customer service is one of the main obstacles for potential competitors to enter the industry. Especially for ball valve, gate valve, globe valve or butterfly valve manufacturers, new manufacturers have to spend a lot of investment and time to overcome the original customer brand loyalty and establish their own product (or brand) image.

(2) distribution channels. Distribution channels can also become an important obstacle to enter the industry. For example, a new gate valve manufacturer may crowd out the products of its existing competitors only through price discounts, advertising or a large number of marketing promotion activities. The less distribution channels available, or the tighter the existing competitors' control over the distribution channels, the higher the barriers to entering the industry, and the new manufacturers even have to start a new business, Build your own distribution channel from scratch.

(3) capital requirements. The capital requirements for entering the industry include not only fixed capital investment such as plant and equipment, but also working capital needs such as consumer credit, product inventory and opening loss; It needs not only productive funds, but also a lot of operating funds for product development, advertising and public relations activities. For some stainless steel valves, large diameter valves, American standard ball valves or wj41h bellows globe valves, the capital requirement is the main obstacle to enter the industry.

(4) economies of scale. Economies of scale include product production, research and development, marketing and after-sales service. It is an important obstacle for potential competitors to enter the industry. The scale economy of the industry requires new manufacturers to have the same scale of production and operation as existing manufacturers, otherwise they will face the competitive disadvantage of production cost or marketing cost.

In the face of these competitive enterprises, only product innovation always follows or leads the trend of the times, can they obtain greater profits and market space. Enterprises should constantly enhance the awareness of brand operation. In this era of product homogeneity, enterprises must establish brand awareness, establish brand strategy, do a good job in brand promotion, impress customers with service, and win the market with quality.