Vicious low-cost competition in the Internet TV industry has been forced to a dead end?

On the eve of the Spring Festival, it should be the peak period for TV manufacturers to promote sales. However, this year's situation is somewhat special. Faced with the rise in the prices of various raw materials, especially the soaring price of TV panels, companies are facing cost control pressures, and the sales of Spring Festival promotions may be reduced compared with previous years.

This superficial phenomenon predicts that the profit brought by the low-price competition model will be more profitable. In the face of greater profit pressures, companies will have to re-plan corporate strategies and return to the path of innovation. Low-price competition has brought some disadvantages such as lack of innovation and disorderly competition to the industry. Therefore, the increase in the price of raw materials in this round will bring cost pressures in the short term, but in the long run, it will help eliminate low-cost competition and build a healthy and orderly market environment. The company's experience in sticking to its strategy and not following up on low-price competition is worth learning.

What can I do if the company cannot afford to burn?

After smart phones, Internet TV became the next hurdle. In order not to lose at the starting line, some companies also adopted the low-priced model that the smart phone industry had prevailed in an attempt to quickly win over users. As more and more Internet companies enter the TV industry, this trend has gradually intensified, and even negative competition has emerged.

For enterprises, long-term low prices will create profit pressure, and there will be no sufficient "ammunition" to be delivered to the front line of innovation. The technological upgrading and quality upgrading of TV products will slow down, so that consumers' desire to purchase will not be stimulated. In the face of this situation, some companies will even continue to pull down prices. In the long run, they will fall into a vicious circle of lower prices and lower prices, lower prices and poorer prices, and even affect the industry environment, so that Skyworth, Cool open, etc. Enterprises that make products and vigorously innovate feel the pressure.

Low-price competition is tantamount to burning money. Even with the support of gold owners behind it, long-term investment may not be rewarded. Any capitalist forces will tighten their moneybags to wait and see. So in the second half of 2016, LeTV faced financial pressure and had to raise prices. Some people think that this is actually a rethinking of low-cost models by TV companies.

Looking at the capital and waiting for the company to burn is not a sign that the low-price model has come to an end. When the market releases this kind of signal, what should companies do in the era of “low-price competition”? Price increases are only an expedient measure. Only by returning to innovation can we fundamentally reverse the situation and eventually get on track.

Technology and pattern innovation must be emphasized

The primary innovation task is to value products and technologies and give more support to the technical team. Enterprises will find that technological innovation is done well, and the quality has gone up. Even if they do not adopt low-cost strategies, they can still attract consumers and realize profitability. Of course, at the same time as technological innovation, companies should not ignore the transformation of business models. In terms of technology and mode, the cool-wrench approach should be taken seriously.

In 2016, Cool Open did an important thing, namely to actively adapt to the diverse information reception habits of users in the Internet era. To this end, Kukai has established a content system covering many fields such as film and television, games, education, and tourism. In the past, only things that could be done on mobile phones could be implemented on television, and users had more time for entertainment on television. In addition, Coolopen has made breakthroughs in the precision push of big data, allowing users to quickly find what they need in massive amounts of information.

Since users value content, building a rich content system is a problem that companies should focus on and how to solve it. Kukai changes the business model based on open cooperation, integrates resources in the industry chain, and accepts more content providers. Collaborative forces build a large content system. Because of this, the television industry has a unique "big content" model. The success of Kukai is that the big content model is self-driven, it will adjust the big content system according to changes in user needs, and will upgrade the technology according to the requirements of hardware such as games and tourism, so as to enter a virtuous circle that is constantly moving forward. system.

In order to inspire creativity, Cool Open rewards employees with ideas and achievements in addition to systematic training for employees. Recent media information shows that Cool Open has encouraged several employees at the 2016 Outstanding Employees Awards Conference. The highest award is a two-bedroom house in Shenzhen, which shows its emphasis on outstanding talents. This is a reflection of Coolopen's encouraging innovation and a reflection of its upward trend in 2016.

The training of talented people and the exploration of new technologies and new models are inevitable measures for the long-term development of the company. The day when the low-cost model will eventually lose its effectiveness, it is better to rush to carry out overall rectification than to rush to adjust the strategy from now on, and gradually cultivate the company's innovation environment to adapt to the new form of market demand.

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