Recently, the Chinese version of Forbes, the world-famous business magazine, released its first list of 2005 in Shanghai: China's Potential 100 in 2005. Among the SMEs on the list, seven auto parts companies led by Zhejiang Ningbo Jidong Electronics Co., Ltd. are on the list.
In recent years, many small and medium-sized enterprises have emerged in the country and they have become a beautiful landscape for the Chinese automobile industry. However, fierce competition also puts a lot of pressure on those companies that survive in the cracks. So, what kind of small and medium-sized component companies can win in the competition, and where are their future development directions?
The true meaning of "potential": master key technologies
From the information provided by the company and the information obtained on the company's website, it can be seen that the seven parts and components companies listed have many similarities in their cultural background and their own scale. What's more important is that these small and medium-sized parts and components companies have similar practices in terms of profitability. They also have the same strategy for improving the market position of enterprises. They are mastering key technologies.
"Although SMEs must have a relatively fast growth rate (sales growth) in order to increase their position in the market, profitability (profits, investment returns, and shareholder returns) are the key to growth in their strength." A person in charge of the Forbes Chinese version said in an interview that the size of profitability lies in the size of the company's core competitiveness, while the company's core competitiveness is reflected in its own research and development capabilities and key technologies.
“We believe that only such companies have the future and can be called 'potential.' Those companies that place too much emphasis on current profitability and invest in core technology will eventually be eliminated in the competition.†The responsible person said.
Ningbo Yongdong Electronics Co., Ltd., ranked sixth in the list, has an advantage in this area. It is reported that this company established a capable development team in 1999 to focus on the development of core capabilities. At present, the company already has 9 national utility model patents and design patents. This is also the main reason why the company is considered as the most potential among all the auto parts manufacturers.
From this selection, it can be seen that besides the basic aspect of hard data screening, Forbes has given greater weight to those companies that are “focusing on core capability development and management capability upgradesâ€.
SME's Survival Rules: Refined, Specialized, Internationalized Operation
“Actually, our company didn't know that it was on the list until after the list came out. Our company is an integrated operation of R&D, design, manufacture, and sales. It has been more than 20 years since we operated automotive electrical equipment.†Xiamen Jizhi Electronics The person in charge of the Co., Ltd. said in an interview with reporters on the phone that "professionalism" is an important reason why they have strong competitiveness.
In response, Du Fangci, an automotive expert, said: "As technology has progressed, the division of labor in economic production has also become more and more detailed, which has given small businesses an opportunity to develop. Therefore, small businesses should be more intensive and specialized. Direction."
He believes that in this regard, we can learn from some small and medium-sized parts and components companies in Taiwan, although their scale is small, but many have entered the international procurement supply chain, mainly because their products are doing very well. Although in a certain period of time, the size of SMEs in the Mainland is difficult to develop such as Bosch, Delphi, but as long as the technology is leading, it can enter the international market.
In an interview, Feng Fei, vice minister of the Ministry of Industry and Economic Development of the Development Research Center of the State Council, also emphasized the role of Jinghe in the competition among SMEs. According to Feng Fei, there are many small and medium-sized enterprises in Japan. In the fierce competition, there are two types of survival: one can be attributed to “first†and the products are relatively single, but the number of products is relatively large, and the model is very complete. The scale is also relatively large; the other category can be attributed to "uniqueness". There are unique technologies and the products are not only perfect but also unique.
Feng Fei also analyzed that in the future development of SMEs, if they want to maintain strong competitiveness, they must have sufficient awareness of internationalization. At the same time, it is necessary to regard international operations as an important means of enterprise development. "If SMEs want to survive the fierce competition, international operation is a very important way. The international operation mentioned here refers to the internationalization of production and operates according to international standards."
The seven companies listed are all located in open coastal areas. This made them have a strong sense of export and performed very well on the export side.
Responsible person of Jinan Hongzheng Technology Co., Ltd. said in an interview that the company realized the importance of exports from the beginning of its establishment in 1996, and now the company’s products have been exported to France, Italy and other countries, with annual export earnings of more than 500 Ten thousand U.S. dollars.
The development potential of SMEs can not be ignored
"The United States' three majors' are like aircraft carrier groups, and US SMEs are like many ships that are served by aircraft carriers. Without these ships serving aircraft carriers, the aircraft carrier will only wait to be beaten." Feng Fei With a vivid metaphor, it shows that in the automotive industry, the supporting and cooperative relationship between small and medium-sized enterprises and large enterprises, as well as the important role of the existence of SMEs.
Du Fangci agrees with this. He believes: “We hope that in the future development of China, there will be multinational component manufacturers like Delphi and Bosch. However, we should not ignore the development of SMEs, and the learning ability of many SMEs. Strong, innovative, and very good at learning.â€
According to relevant experts, in Japan, SMEs are considered to be the driving force of economic growth. Japan’s policy is to support SMEs to develop in a diversified and dynamic direction rather than to develop in a big and inclusive manner. On the contrary, some of our policies are currently preferring large-scale enterprises and neglecting the development of small and medium enterprises.
In this regard, experts have called for more and more small and medium-sized enterprises to become more professional. The government should provide more policy support for auto parts companies, so that the potential of SMEs can be fully realized.