Abstract Wal-Mart, you may not know the name, you have never heard of this company, but the glass of your home may be made by it. I don't know if this business doesn't matter, I don't need to know it, because it went bankrupt, crashed down, and there was only dust left behind. Wall Run, once...
Wal-Mart, you may not know the name, you have never heard of this company, but the glass of your home may be made by it. I don't know if this business doesn't matter, I don't need to know it, because it went bankrupt, crashed down, and there was only dust left behind. Wal-Mart, once the glass giant, made the glass shining in the sunshine, but it was already dim, and never saw the dawn of the 2016 New Year. The fall of Wallrunn was in a miserable way, the whole line was shut down and liquidated, and all employees were dismissed. The former "elephant" finally became a "squatting ant" and was trampled on. With Wal-Mart as the representative, the traditional manufacturing industry is trapped in the “three-door†muddy, the upstream price war, the mid-stream profit shrinking, the downstream orders sharply reduced, and the war of stagnation in the meager profit era has started.
Speaking of Wal-Mart, the glass counterparts only have one action, and that is a thumbs up. From the establishment of the golden age of glass-based industry to the final flowering in 1997, Wal-Mart grasped the right to speak in the manufacturing industry with its own strength. Its cost management, quality control and sales model once became the model for learning in the same industry. Once the glory came to an end, who smashed its "glass."
First of all, it must be mentioned that the Chinese glass industry is generally facing the current situation of overcapacity and falling profit margins in the industry. The "three-door" meager profit era has made the competition for the market enter the stage of incandescence, the rich upstream is willing to burn money, the downstream is incapable of waiting to be harvested, the middle reaches can only be delayed, and the profits are shrinking. Moreover, environmental protection pressure has also added a fire, resulting in a large number of glass production lines cold repair exiting the market, echoing the overcapacity caused by the rapid expansion of the glass industry, and ultimately the industry is generally at a loss, and no one can get a share.
Secondly, Warren itself has great flaws in its strategic layout. In the early 1980s, various industries in the country were in a period of rapid development. Wal-Mart tasted the sweetness brought about by the expansion, and has always used it as a guiding idea. Even if the day shifts to the stars, the industry is in a downturn, still sticking to the old one and blindly expanding. This has led to a lack of capital turnover and a heavy debt, which is a strategic taboo.
Finally, Wal-Mart not only seeks to break through the pattern, but also fails to adjust its structure, and its own products are single and lack competitiveness. The development of the "Great Leap Forward" type consumes itself, and survival by production is not applicable at any stage. The most important thing for enterprise development is capital. If you don't manage the accounting ideas and manage the money, you can't figure out the relationship between the business and the market. If you spend money, you must just float, and the only harvest is the one or two splashes.
Wal-Mart is a representative of traditional manufacturing, not only in the glass industry, but all traditional manufacturing industries are facing the problem of capacity transformation. However, industrial upgrading is not an easy task. If you are not careful, you will lose all your money. How can you stop it?
First of all, transformation and upgrading must be strategically conscious, with the market as the weather, rather than behind closed doors. With the development of automation control technology, the manufacturing mode of the manufacturing industry has begun to change. It is no longer a simple replication of production capacity, but a shift from a population-intensive to a technology-intensive one. In other words, the things that are manufactured must have the characteristics of the times, and must meet the needs of the masses, rather than forcing the public to accept them passively. Take the glass industry, some deep processing, ultra-white, LOW-E, color glass may gradually become the mainstream.
Secondly, the era of meager profit is inseparable from the contradiction between supply and demand. Overcapacity is the root cause of not making money. The key to solving this problem lies in the use of management accounting thinking to make products, through value chain analysis, to find out the source of profits, and thus Targeted investment, the implementation of maximum cost control for products with poor returns. The best state of the manufacturing industry is to achieve zero inventory. Although it is very difficult to do this, it can make the inventory as small as possible through analysis and forecasting.
Finally, risk control must be in place. While blindly expanding, we must also reflect on whether we have enough cash flow for the daily turnover of the company. Focus on the macro, gradually develop into an industrial chain, rather than eating a fat man.
Wal-Mart's "glass" has been broken. This is the shackle of traditional manufacturing. It is also a wake-up call. Capacity transformation and financial reform are imperative. Whoever scorns it, the death notice will be sent to whom.
Fuonce-Lighting , https://www.fuoncelighting.com