Oct.2023 25
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Prospects of communication companies going to sea
The layout and advantages of communication enterprises going to sea
Communication enterprises to the sea path: cost advantage as the core

   The core advantage of the communication enterprise to the sea path comes from the cost advantage formed by the domestic engineer dividend and industrial agglomeration. Under the cost advantage, the product's cost-effective attribute is prominent, and the domestic enterprises have a lower break-even threshold compared with overseas competitors. While domestic enterprises have the initiative to adjust prices, their profit margins also support subsequent reproduction. Focusing on cost advantages, domestic enterprises go to sea mainly through the following ways:
(1) to break through the developing country market with cost-effective programs;
(2) Through the accumulation of domestic and developing countries market and R&D investment, product force breakthrough, compete for Europe and the United States and other developed countries market;
(3) Overseas leading shares to form supply chain or industrial cooperation;
(4) Seize the global supply and demand mismatch window to achieve sea breakthroughs;
(5) Using foreign policy, such as the Belt and Road Initiative, to achieve breakthroughs in the sea.
In addition, communication companies in the overseas market layout, also need to focus on:
(1) the management of the global vision;
(2) Strengthen channel construction;
(3) Building overseas production capacity;
(4) Acquisition or establishment of joint venture companies;
(5) Strengthen research and development;
(6) Strengthen product testing and certification;
(7) Output standard.

Core advantage: engineer dividend and cost advantage of industrial agglomeration

Engineer dividend and industrial agglomeration shape the cost advantage, and the resulting price advantage has also become the core strategy for domestic enterprises to go to sea. Benefiting from the labor cost advantage of the bonus of domestic engineers, Chinese manufacturers often have cost advantages compared with overseas competitors; The superimposed communications industry benefits from the industrial agglomeration of the electronics manufacturing industry, further reducing costs. Benefiting from this, in the case of the same product, the price of Chinese products is often more than 20% cheaper than overseas competitors, forming a prominent price advantage. Engineer dividend: For example, modules, intelligent controllers and other midstream links, labor cost advantages are prominent.

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