Economics of small air-conditioning business.docVIP

 PAGE \* MERGEFORMAT 4 Economics of small air-conditioning business At present, many domestic small and medium manufacturers of the survival and development issues of concern. I am also often asked about the air-conditioning the survival and development of SMEs. Indeed, in the current market environment, in theory, a ‘Matthew effect: the strong Hengqiang, the more weak-weak’ theory, the support, in reality, Gree, Haier’s market share in three major brands is also growing. Annual sales below 100 million SMEs in the end there is no longer necessary? If so, their future development space, then where? For the first question, I think the answer is yes and clear. First of all, in recent years, the rapid development of China’s market economy and the rapid processes in a short time, thanks to the private, the collective nature of SMEs and other support. Secondly, at this stage of China’s market economy, prosperity and stability depend on the proportion of up to 80% of the SME development support. Furthermore, although China’s economic power, not economic power. Mainly for China’s economic system, many enterprises, but a single small-scale enterprises as a whole, SMEs are essential. Air-conditioning market, is a fully competitive market. Since 2000 the number of companies participate in the competition was once as high as 500, followed by integration and shuffling in the market, the shrinking number of businesses closing in the current still has nearly 50. As a result, in recent years, the industry came the ‘air-conditioning market will oligopoly, SME development will be desperate’ voices. In my opinion, air-conditioning market has not entered oligopolistic competition, is still in a state of perfect competition. Economists Kunming-Bangkok for the oligarchy is defined as: Only a few offer similar or identical products, sellers of the market structure. For the perfect competition is defined as: There are many transactions the same product buyers and sellers, so that