Chinese household electrical appliance pursuit of economies of scale is the Monkey Fishing.docVIP

 PAGE \* MERGEFORMAT 4 Chinese household electrical appliance pursuit of economies of scale is the ‘Monkey Fishing’ When a marked boxes of household electrical appliances of profit and freight transport which case the product is almost time, the industry can no longer be known as the manufacturing sector, but should be known as the home appliance manufacturing materials, transport services. Ministry of Information Industry has just been published in 2005 appliance industry, annual profit margin of only 0.61% of the figure has proven appliance manufacturing collapse. At present, we need to reflect not only the number, but more importantly is that this figure behind a development model. So far, only the Chinese household electrical appliance manufacturing industry to develop a scale and scope to enjoy the possibility of the economy, and our pursuit of such a possibility like a ‘Monkey Fishing’. Many of our home appliances such as air-conditioning, color TV and other products already have a 10 million units the size of the manufacturing scale, supposedly the manufacture of such a scale should be able to enjoy economies of scale and scope economies, but we greeted it was sharply lower profits of a nightmare, this proved that we seek to be self manufacturing scale to gain a competitive advantage in the global strategy of encountering resistance. Huge market capacity and the government-led investment in the production of a double incentive for the Chinese household electrical appliance manufacturing industry to focus on the development of large-scale manufacturing, so that the results of the operation, and did not bring the world home appliance industry a competitive advantage. An industry position in the global industry, there is a supply-side, the buyer, a substitute, intruders and other forces, and we see that China has the world’s household electrical appliance industry, manufacturing scale, but the competitiveness is very limited, the buyer and the seller 2 a