In the past 30 years, Chinese paint companies have gradually transitioned from opportunity-oriented to strategic-oriented.
In the first 15-20 years, Chinese companies basically had no strategy. The same is true of private paint companies in China. In the period of great transition from planned economy to market economy, various opportunities emerged in an endless stream. The companies that are in it naturally choose ''opportunity-oriented''. The important means for the development of enterprises is to seize these opportunities and quickly expand, grow, and expand. In such a living environment, the success of a company does not necessarily depend on a far-sighted strategy or excellent and efficient management. It depends on whether the company can seize key scarce resources and make full use of each opportunity. As the saying goes, the typhoon is coming and the sow will be on the tree. This is also the socio-economic background of privately-owned coated enterprises desperately expanding, rapidly replicating brands, and maximizing competition for the market in the past century. Only when the market matures, will there be opportunities for development.
The upgrading of traditional manufacturing
There are two basic points in the viewpoint of cost innovation proposed by famous Chinese scholars: One is to use low-cost methods to innovate. Then there is an innovative way to reduce costs structurally. Chinese companies have great advantages in applied R&D. Because China has the most core comparative advantage: the most cost-effective R&D personnel training. For example, the medical device industry. In the early 1990s, due to the rapid development of multinational companies such as General Electric and Siemens, China's early medical equipment companies, such as Kejian, were eliminated. However, in recent years, Chinese companies have begun to enter this industry on a large scale, and have made great breakthroughs (such as Mindray). The important reason is that medical devices are not invented in nature, but rather are improved and solution-based. They are the combination of medical engineering and mechanical engineering. The core low-cost R&D labor costs of Chinese companies are inseparable from their own development.
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