The rapid development of packaging companies

With China’s accession to the WTO, the improvement of Chinese enterprises’ own quality, the enhancement of competitiveness, and the rapid development have become the key factors for the development of the Chinese economy. In the current context, Chinese enterprises have come to be stronger than ever before. It is time for physical development and independent and rapid development. In the past decade or so, China's packaging companies have made rapid development. However, compared with modern scientific and technological progress and the requirements of the times, there are still some deficiencies. Many experts and scholars at home and abroad have summed up an important law based on the long-term research of various companies: Like personal success, besides having strong self-confidence and eager for successful enterprise, the success of companies depends on the number of There are several key elements that make up a successful company's distinctive personality, that is, the "DNA" that determines the fate of a company's success. Most of the failed companies lie in their lack of or deviation from a certain element or elements.
I believe that in order to achieve rapid development, China's packaging companies should have the following elements in all stages of development in addition to the rules for the development of the company's development in the context of the external environment.
I. Entrepreneurship and Entrepreneurship The concept of entrepreneurship has emerged with the division of labor in the economy. The academic community has put forward many viewpoints on the qualities and conditions that entrepreneurs should possess, which are more concentrated in the following points:
First, entrepreneurs must be people who are innovative, visionary, and dare to try new methods that others have not used. Second, there is a profitable association between the entrepreneur and the company. Third, we must have a strong will to power and perseverance that does not stop at the goal. Fourth, it has outstanding charisma and organization. Fifth, it is the perfect combination of idealism and realistic meaning. For entrepreneurs, the motivation for developing new business is not only to obtain the material and currency they need, but also to have the following three aspects of spiritual and psychological pursuits: first, to create their own "kingdom" to meet their own " The second is to be unwilling to be mediocre and have a strong desire for victory. Third, the sense of joy that innovation brings, in the course of work, constantly overcome difficulties to achieve breakthroughs, defeat the joy of self, and even more than the ultimate success. The result is even more exciting to experience.
With China’s reform and development, the entire social environment is more conducive to the growth of entrepreneurs. At present, China has emerged with entrepreneurs such as Sichuan Liu’s brothers, Zhejiang Nancunhui (Chengtai), Guangdong He Boquan (Robust) and a large number of private assets, as well as Zhang Ruimin (Haier) and Liu Chuanzhi (association). Tao Jianxing (Chunlan) and a group of entrepreneurs of state-owned enterprises and collective enterprises. Their growth has brought a group of Chinese companies closer to the world’s top 500.
Second, excellent corporate management is one of the most valuable great skills that humans have created in their struggle to change their lives. Management penetrates every place in modern social life, every minute. Where it left management, it becomes a mess. Management is the central nervous system of an enterprise. It covers the various compositional mechanisms of the enterprise, and controls and coordinates each mechanism to achieve overall integration and achievement of established goals. The main components of modern enterprise management are planning, organization and control, and its core is the enterprise's business philosophy and corporate culture. In China's packaging companies, many companies are inefficient and wasteful. One of the key reasons is that there is not a good incentive and restraint system, or there is also a fictitious one. Without the system and unruly rules, the enterprise is a mess. Haier's management was considered very strict by the theoretical community, which created Haier's success.
The advanced stage of enterprise management is the formation of corporate culture. “Small businesses rely on entrepreneurs, medium-sized enterprises rely on management (systems), and large companies rely on corporate culture”. This is a popular phrase in the Chinese business community and fully reflects people’s deep understanding and high attention to corporate culture.
Corporate culture refers to the ideals, beliefs, values, and codes of conduct that govern the enterprises and their employees in commodity production, commodity management, and social interaction. It is characterized by modernity, humanity, diversity, plasticity, and systematism.
III. Cultivating well-known brands and brand management American Michael Porter put forward the famous theory of competitive advantage in the 1980s. In this theory, he highlighted the role of competitive advantage in enterprise development. After entering the 1990s, the United States, Japan and other countries further put forward the "brand asset theory", emphasizing the use of the brand rather than the use of products to occupy the market, emphasizing the brand as the combat unit to expand the market.
Although competitors can quickly imitate products produced by a company, it is difficult to imitate their brand image. Because the brand image is based on the quality of the products it produces, the level of service it provides, as well as the company’s reputation, policies, and the power of marketing activities that are built year after year, long-term accumulation, such as Ford Steam, IBM computers, Tong Ren Tang. Traditional Chinese medicine, permanent brand bicycles, etc. have been betting on a consistent brand image for many years and have formed a deep impression in the minds of consumers. For a company to develop rapidly, it must cultivate its own brand. Therefore, packaging companies must attach great importance to product quality, in the choice of materials, origin, and technical excellence; continue to innovate in product design, the pursuit of diversification, convenience and scientific; to have a flexible strategy of marketing, promotion and public relations We must have advertising strategies; we must have the courage to be good at winning in the competition; we must constantly innovate, launch new brands, and innovate brands.
Fourth, the implementation of low-cost strategy Low-cost is a relative concept, refers to an enterprise because of its labor, raw materials or production technology process, management, trading, and other aspects of the lower cost, so the same product in the market sales than other manufacturers of products Competitively priced. In the fierce market competition, manufacturers with low-cost advantages can beat competitors by reducing prices, so as to eventually increase market share and increase operating income. In the case of stable market conditions, they can be cost-effective when sold at the same price. Manufacturers will have more profits than other manufacturers. At the same time, low-cost companies can better withstand the market turmoil brought about by economic fluctuations, and companies have strong survivability and stability. Looking at the domestic and foreign companies, most of the major breakthroughs in the international expansion are in the low-cost aspect.
China's packaging companies should pay attention to the following points when using low-cost strategies. First, they should grasp theories and laws of low-cost expansion, give full play to the advantages of cost-competitiveness brought about by specialization and large-scale production, and pay attention to this model. Risks: First, any crisis in the industrial chain will affect other links, resulting in a glorious and enduring loss. The second is that changes in production technology or the emergence of new technologies may invalidate past equipment investment or product production experience and give new entrants an opportunity. Third, when the market is saturated, the production and sales volume will be reduced, the cost advantage will be weakened, and the strategy will be difficult to sustain. Second, apart from using the lowest-cost labor force as much as possible, the reduction in management costs is an important factor. According to statistics, in the total cost of the enterprise, management costs account for 53.09%, procurement costs account for 21.09%, production costs account for 14.18%, and sales costs account for 11.64%. Therefore, starting from the management cost to reduce the total cost of the company has become a major breakthrough. Third, when implementing low-cost strategies, select talents with international perspectives and strategic execution capabilities. This is because in a low-cost expansion, involving complex quality factors such as different quality standards, different consumption environments, environmental protection requirements, and anti-dumping, only under the management of high-quality talent can effectively avoid possible risks and maximize the possibility of acquiring this strategy. The benefits and benefits.
V. Leading Technology If a low-cost strategy is a “stepping stone” for a company to enter the international market, then its own leading technology is the only weapon for a company to achieve equal status with the multinational giants and long-term international market competition. After researching the relatively successful domestic enterprises, Zhang Weiying thought: Institutional innovation is the main method and successful experience in China's reform and opening up over the past 20 years, but the lack of technological innovation will be difficult to support the long-term development of the company, especially the successful expansion in the international market.
Take the success of China's Haier Group refrigerator technology as an example. In 1988, Haier formulated its own "brand strategy," and its unique content is the idea of ​​"recovering from difficulties first," that is, entering the developed countries and regions first, and changing and improving itself through the strictest requirements of the developed countries. It forced its own technical level to reach the level of a world-class company and created a brand name. Later, it entered the developing countries and regions with the tendency of building a high house and rapidly occupied the market. In 1990, Haier Refrigerator passed the UL certification of the United States, and subsequently passed the German TUV, VDE, GS, Europe's CE, EM, Canada's ESA, the Middle East's SSA, Australia's SAA and other international certifications. Every time passed a certification, Haier International The understanding of first-class technical quality requirements is further deepened, and the technical level of products is further upgraded. At the same time, Haier hired several foreign experts to set up a joint venture company and established extensive cooperation with many research institutes and universities both at home and abroad. Constantly improve Haier's level of design, mold design, energy saving, noise reduction and other new technologies, new materials and new network control. In the second half of 1998, it received more than 300 patents, developed more than 100 new products, and produced 42 technical achievements. Through the implementation of this technological innovation strategy, Haier's refrigerator technology has surpassed the international advanced level so far and has the competitiveness of the world market. Thanks to advanced technology and reliable quality, Haier’s product prices, even if kept above average, can be accepted by consumers. Its product sales revenue has rapidly increased from 16.2 billion yuan in 1998 to 40.6 billion yuan in 2000. The market advantage brought by technological innovation is evident in the speed of development.
In order to achieve rapid development, packaging companies in China must speed up innovation and reforms, upgrade technology, integrate quality products with high quality and low price into the international market, open up new markets, and strive to increase exports. China's packaging companies have developed rapidly, but there is still a big gap compared with foreign advanced technologies.