2014 LED lighting will usher in a new change in the situation and development
Edit：Admin Browse： Date：2014/6/18
Peer LED lighting industry price war in recent years , the phenomenon of closures and mergers and acquisitions analysis, the LED lighting industry reshuffle is inevitable result of market development point of view . After merger integration , after the baptism of closures , lighting industry some companies will focus on the advantages of resources , competition to the strong stronger and the weak weaker trend of development , the pattern of LED lighting industry will initially became visible , only the last laugh is the winner.
Price war waged
"Price war " has become China's current market economy in a striking phenomenon , regardless of any industry enterprises, will take some price strategy to form a larger scale, while the "price war" between manufacturers often lead to a vicious competition. From our current LED lighting industry market structure analysis, product competition has the largest circulation category showed significant oligopoly characteristics . Specifically in larger scale enterprises naturally , with economies of scale characteristics , and each enterprise products have a certain degree of homogeneity characteristics with each other to some extent the alternative .
Development of LED lighting industry has been accompanied by the "price war" bloody, large companies want to scale advantages will translate into a price advantage by continuing to maintain the initiative in the market ; SME wants to lower prices for the " heavy artillery "" bombing "market. Price war results may be beneficial to consumers , but to make the industry a large number of corporate profits decline, survival difficult or even bankruptcy. Some economists believe that the "price war is a destructive competition , after the price war , outside of which , including provoke themselves , all bruised , exhausted, there are no winners ." However, many companies are bored , stir continuously one after another price war , and claimed it was " corporate behavior ", " market-based instruments ", " expand the market share of the most effective strategies " and so on . But the price war so that the operators profit decline , is not conducive to technological innovation , distort consumer psychology , is not conducive to long-term development of enterprises , it is an indisputable fact.
Of course , the price war is not one hundred harm . A price war is a double edged sword , the competitive process is inevitable , " rivers of blood ", but in the LED lighting industry did not develop into a benign period of price competition is conducive to expanding the market share of LED lighting products to accelerate the LED lighting to replace traditional lighting period , survival of the fittest industrial restructuring , technological competition from price competition to achieve the transition . Nevertheless , the price war is still not as a long-term market competition means .
2014 , to accelerate the transformation of traditional lighting , new enterprises began to force , LED lighting market is still in a price battle.
The wind and the merger integration
In the past few years , China's LED lighting industry has seen a case of mergers and acquisitions . Whether it is the merger, asset acquisition or tender offer in the form of motivation is the root of all mergers and acquisitions in order to improve their competitive strength , gain a competitive advantage.
Weston synergies that " the acquisition will bring the production and operation efficiency, the most obvious effect of performance achieved economies of scale ." 2014 , with the merger will accelerate the promotion of a price war , shuffling , a new melody LED lighting industry . Industry mergers and acquisitions winning rewrite the current industry structure has become a new growth point in the future business .
LED lighting industry is in a period of shuffling , corporate failures have occurred . To develop , we must first solve the problem of existence . I hope to get a long-term development of LED lighting companies want to use the merger integration approach to make up for their deficiencies in terms of LED lighting products, brands , technology, and other channels , and mergers and acquisitions are just the fastest way to solve these problems .
However, M & Easy integration difficult. Inevitable differences in terms of both the company's management , culture and values . Despite the obvious benefits of mergers and acquisitions , but to move forward with ease , resolve after the merger prone to instability , must be gradual, otherwise difficult to achieve the desired results .
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