Five dimensions of the rise of the hottest Chinese

The five dimensions of the rise of Chinese enterprises

after 30 years of market-oriented reform, when some concepts such as "enterprise value", "long-term investment" and "sharing China's economic growth" are gradually rooted in the hearts of the people, how we look at the future through the growth history of Chinese enterprises is a topic that investors need to seriously reflect

cost leadership

China's cost advantage of labor and other factors is China's inherent advantage. The labor cost of China's manufacturing industry is less than 1/20 of that of developed countries such as the United States, Japan and Germany. According to the 2006 manufacturing unit labor cost data of the World Federation of large enterprises, China is one of the most competitive manufacturing countries in the world. However, when enterprises rely on the cost leadership strategy to expand their competitiveness, factor cost is only one of the starting points. On this basis, enterprises must quickly expand their cost advantage through scale and technological progress

in this regard, the automobile and parts industry represented by Fuyao Glass is more representative. Fuyao itself has become the world's first-class supplier of Audi, a high-end brand of Volkswagen, and the main supplier of Bentley, a top-level car, which means that China's independent auto glass has the strength to compete with the world's major auto glass companies in all product fields

professional innovation

the so-called professional innovation includes the innovation content of technology, products, services and other levels. Within its own professional scope, the enterprise continues to cultivate carefully, relying on the accumulated cultural heritage to expand new professional capabilities. This advantage is not available to other enterprises and is difficult to replicate, and the huge investment opportunities bred during this period are obvious

such enterprises include ZTE, Han's laser, Yantai Wanhua, Xifei international, UFIDA software, Kehua biology, tunnel shares, etc

resource control

resources refer to the fact that enterprises possess some scarce means of production, or if they do not clean up in time, they have monopoly sales channels. Such advantages are usually combined with enterprises, which can not be copied and can not be imitated through learning

resource control should become the advantage of the rise of enterprises, which also involves the demand for resources and policies. First, the public should have a greater demand for the resources controlled by the enterprise. The products or services are in short supply for a long time. New optional load time, load displacement, displacement time, deformation time and other experimental curves are constantly displayed, amplified, compared, and traversed in real time, as well as the monitoring and application of the experimental process. There is a constant demand, which will stimulate the improvement of the value of the products or services of the enterprise. Second, policies should support the integration of resources, while resource prices are not controlled by the government or less controlled by the government, otherwise the advantages of enterprise resources will be difficult to play. For example, in the water industry, although resources are scarce, the price is strictly controlled, and it is not a resource controlled enterprise

nonferrous metal industry is the first choice for industries with current resource control advantages. The State Council requires that the integration of various developed mineral resources be basically completed by the end of 2008 to curb the disorderly and inefficient development of mines; Due to the weak dollar, strong demand from developing countries and soaring non-ferrous metal prices, the non-ferrous metal industry has witnessed a bull market since last year

agricultural products are another example. The highly decentralized organizational form of agricultural production in China determines that the wholesale market of agricultural products has become a key link in the circulation of agricultural products, which has a certain monopoly. Moreover, the government often lacks effective supervision means for the food safety of agricultural products in the production process, and it needs to rely more on the agricultural approval market, the main product distribution center, to ensure the management of urban food supply safety. The result of the agricultural approval market - the monopoly of products that will continuously enhance customer satisfaction is supported by the state. At the same time, the profit model of the agricultural approval market has changed from charging site rents to earning transaction commissions, which has significantly improved the profitability of the agricultural approval market

we believe that resource-based enterprises are more representative of agricultural products, Gehua cable, Salt Lake potash, Hongda shares, tin industry shares, etc