Chapter 490: Market rules

Liu Yuan looked at Zhang Yang helplessly: "You said you are regulating the market? Excluding other competitors is to regulate the market?"
"Ministry Liu rises, there is some deviation in your understanding. I only ask a few questions, I hope Liu rises to give answers. First, are we actively applying to join the World Trade Organization, then will import and export trade surge in the future?"
"Second, have the electronics manufacturers in island countries, South Korea, and even Europe and America all aimed at the Chinese market and started to carry out industrial layout in the Chinese market?"
"Third, Liu Busheng believes that the small workshop model and the large factory model, which represents the future?"
"Fourth, are we talking about market economy now? So what is the nature of market economy? Administrative intervention?"
Liu Yuan was silent, and Zhang Yang understood what he meant. To put it bluntly, the Zhiduoxing Group does not reduce prices, so after other companies join the mainland market, they will also suppress those small electronic companies from other aspects, and they can't afford it.
And those small businesses are small in scale, and their competitiveness is already weak. Rather than being defeated by foreign manufacturers, it is better to stand the test now. If you can afford it, you can continue to make progress and have the opportunity to grow into a large enterprise. Unable to carry it, make an early transition, and save the province even worse in the future.
The market economy is inseparable from market competition and is also an international economic situation. At this time, it has proved to be the most advanced. Basically, developed countries have adopted this economic situation.
Of course, there are different places in different countries. For example, the United States is more free, the economy is in the hands of some large consortia, and political axes rarely intervene.
Some developed countries in Northern Europe are social market economies, part of the economy is handed over to more mature consortia, and some emerging economies are guided by political axe.
Island countries, France, and so on are another kind of market economy with administrative management-oriented market economy, where the political axe formulates a basic national policy and then guides it with policies.
The island nation also has many big consortia, but those big consortia have a closer relationship with the political axe.
China's market economy, called the socialist market economy, is different from the current three mainstream market economies, but it does not mean that China's market economy will be completely dominated by political axes.
In fact, Huaxia has never given too much support to the electronics industry. Zhiduoxing Group has been able to develop more, relying on its own efforts, relying on special times, without reproducibility.
Other small electronics companies, if they want to learn the Zhiduoxing model, will inevitably fail.
The main reason is that now that prices are rising, the demand for salaries of technical talents has also become higher. The market is gradually opening up, and some international electronic giants are swarming into the China market. It is difficult to have a low-cost, high-profit but explosive electronic product.
For example, many people can see that the BP machine is going downhill, and the mobile phone will inevitably be in the future, but the entry barrier for mobile phones is too high.
It seems that one who can make a walkie-talkie can make a mobile phone, but in fact there are many differences in technology. Duan Yongping mentioned to Zhang Yang before, the computer learning machine market is gradually shrinking, and he wants to try a mobile phone.
Zhang Yang also agreed, and signed to let Duan Yongping set up a research and development team, planning to launch mature products within two years.
Many of those small electronics factories are really no different from small workshops in Zhang Yang's eyes. The number of workers is small, the equipment is aging, and some electronic components or electronic products are on the verge of being eliminated.
There are still companies producing 8-bit game consoles, and Zhang Yang does not know what they think.
Once some electronic components or electronic products are really eliminated by the market, those small workshops have no chance of transformation. The result is bankruptcy, which may have nothing in the eyes of investors except the land.
Some old workers, with average skills, will not be needed by investors. Old factory, don't. Old equipment, don't. In other words, those small factories are very likely to fail to sell!
Why do many companies advocate large-scale production, because this can reduce production costs, improve efficiency, improve the excellent rate, and enhance the competitiveness of enterprises.
If enterprises want to make more money, there are two ways to open source and cut costs. Open source means selling more products, and saving money means reducing costs.
This cost includes production cost and cost of sales. It is difficult to reduce the cost of sales. If you do not advertise, the product will not be well-known, and dealers and retailers are reluctant to purchase.
Your profits to dealers and retailers are low, they are also reluctant to do it. Selling the same goods, others make more money, why do I sell you?
There is also the transportation cost in sales, which is why many factories like to build in coastal cities in the southeast. Because of the convenient logistics, how many of you have built factories in the western region? Even if it is, it is not a big factory, and it has to be supported by political axe policies.
Reducing production costs is the main way for many companies to cut costs. Including improving production efficiency, reducing material costs, reducing labor costs and so on.
Many large companies will lay off employees when their revenue is reduced or they are in a loss. This is the most direct way to reduce labor costs.
Only in the mainland, there have been no large-scale layoffs by large enterprises in recent years. Because of this, many state-owned enterprises in the past instinctively survived the difficulties, but they were eventually brought down.
Liu Yuan took out the cigarette case, pulled out one by himself, and pushed to Zhang Yang. Zhang Yang waved his hands and drank tea in his teacup.
"Mr. Zhang, what you said makes sense, but your current practice not only hits some small businesses, but also some medium-sized ones, it will also be severely hit. They would have the opportunity to grow into large enterprises."
"Foreign electronic companies are indeed entering the country in a big way~EbookFREE.me~ But they don't know enough about the China market, and competition with local companies may not necessarily prevail."
"Moreover, the prices of products of many foreign companies are very high, and domestic electronics companies have some living space. Now this space is compressed by Zhiduoxing. What would you do if you were me?"
Zhang Yang shook his head: "I'm not Liu Busheng, and I don't know enough about the entire industry. But please pay attention to Liu Busheng. At present, our Zhiduoxing products are in two directions. One is the electronic game machine, and other small domestic factories. It’s going to be yellow. Whether I lower the price has nothing to do with their yellow booth. We are targeting other companies in the island country."
"Our second type of products are educational electronic products, including learning machines, electronic dictionaries, repeaters, etc. These are the first products our Zhiduoxing began to produce and sell in China. It can also be said that this market was discovered and opened by us."
"There are so many companies that they can imitate. Why must they imitate Zhiduoxing? If they imitate, can they not be made indiscriminately and get out of their own characteristics?"
"Together with the small businesses that go bankrupt, the annual sales and profits and taxes are not half of our Zhiduoxing Group. Just because our Zhiduoxing is developing well, it will be restricted? What is the reason?"