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This year, the cable industry is oversupplied, and the competition is more intense than ever. The cable industry is the second largest industry in the machinery industry except for the automobile industry, and has now shifted from rapid development to steady development. Now the country is in a period of economic transformation and upgrading, but I predict that the current competition in the cable industry is not the most intense, and the cable companies are not facing the most difficult time. Ding Shanhua, chairman and general manager of Jiangsu Shangshang Cable Group (referred to as "Shangshang Cable"), said in an interview with a reporter from China Electric Power News that the market is ruthless, and transformation and upgrading have become the only way for enterprises to survive and develop. Facts In the past, transformation and upgrading is not a change of business, but to improve the connotation and comprehensive quality of the enterprise, and enhance its competitiveness. Enterprises should make full use of their strengths and avoid weaknesses in light of the status quo and market changes, and clarify the thinking and direction of transformation.

Innovation has become the main driving force for the development of the cable industry

"In transformation and upgrading, in addition to excellent quality, we must also insist on innovation." Ding Shanhua told the "China Electric Power News" reporter that innovation is divided into technological innovation and talent management, and continuous improvement and transformation of processes and equipment to improve efficiency and reduce consumption. Use scientific and technological innovation to continuously develop products that the market needs. Only when enterprises become stronger can they pursue market competitiveness and vitality. Only by constantly striving for excellence, improving product quality, making continuous technological progress, developing new products in line with the market, and insisting on innovation, can we have the opportunity to stand in an invincible position in the industry.

"Quality improvement is endless, innovation is the foundation, the key, and the core competitiveness of the company." Zhu Hongxiang, deputy general manager of Shangshang Cable, revealed that in response to the development trend of the industry, Shangshang Cable will also innovate in intelligence and automation , and strive to create a precedent in the industry.

Innovation has become the core competitiveness of enterprises to participate in international competition. The results of the selection of the most competitive "Top Ten Enterprises" in China's cable industry, which has attracted much attention, were released, and Jiangsu Shangshang Cable Group ranked first. At the same time, in the "CRU Global Insulated Cable Market Report" released by the British Commodity Research Institute, an international authoritative organization, Shangshang Cable ranked among the top 10 "Insulated cable manufacturers with an output value of over US$1 billion in the world in 2013". The only cable company in China that ranks among the top ten.

 "This is the first time that China's cable industry has ranked the most competitive companies, which is of great significance." Zhu Hongxiang said in an interview with a reporter from China Electric Power News that this is essentially a "comprehensive physical examination" for Chinese cable companies. Through the data analysis, calculation and comparison in the evaluation, it can help my country's cable companies to discover their own advantages and identify their disadvantages. For the industry, it will create an atmosphere of catching up with others, which will promote the healthy development of China's cable industry.

In fact, insisting on innovation requires a lot of investment. During the downturn of the financial crisis at the end of 2008, Shangshang Cable still insisted on investing. At that time, it can be said that "friends are sweating, and peers are watching jokes." "Investment is risky, but it is not a blind investment." Ding Shanhua told the "China Electric Power News" reporter that it is not a swarm, but an act according to one's ability. We will invest when supply and demand are close to saturation, and we must have a basic judgment on the market trend. The next step is to transition from automation to robot manufacturing.

In the opinion of some experts, the current wire and cable industry must achieve the best overall quality through technological innovation and management innovation. It is understood that Shangshang Cable has been attaching great importance to innovation work for many years. The third-generation nuclear power AP1000 in-shell cable independently developed by Shangshang has filled the gap in the world, and the company has also won the 2013 Equipment China Innovation Pioneer List "Management Innovation" because of its excellent management model. prize".

Cable companies must always adhere to strategic orientation

"Do not seek the largest scale, but seek the best quality." Ding Shanhua believes that the reason why Shangshang Cable has achieved today's achievements is inseparable from its unique corporate culture. Under the four-character strategic goal of "fine, specialized, special, and foreign" of Shangshang Cable, every technological innovation has driven the rapid development of the enterprise.

Among them, "special" means insisting on "scientific and technological innovation", vigorously developing special cables, and striving for "nothing but me" and "high-end winning". Under the guidance of this strategic idea, a large number of high-tech and high value-added special cables independently developed by Shangshang have entered the market, covering port machinery, rail transit, wind energy, photovoltaic, mining, nuclear power and many other fields, becoming the On the new profit growth point. Regarding the next development of Shangshang Cable, Ding Shanhua firmly told the reporter of "China Electric Power News": "Adhere to the essence, specialization, speciality, and foreign trade, constantly improve the connotation of scientific and technological innovation, develop more high-tech products, replace imports, expand exports, and strive to promote China's creation goes to the world."

According to Peng Jianfeng, a professor at Renmin University of China, many domestic entrepreneurs are currently facing a strategic confusion, that is, no strategy can occasionally succeed, but it is difficult to continue to succeed. He believes that when a company grows to a certain scale, especially when it wants to become an industry leader, it must change from opportunity-oriented to strategic-oriented, and from business to business, otherwise it will fall into the trap of opportunism.

In fact, Shangshang Cable is an enterprise that always adheres to the strategic orientation. In view of the current situation of the enterprise and the changes in the market, the company has made clear the ideas and direction of transformation. Over the years, Shangshang Cable has consistently adhered to the development strategy of "fine, specialized, special, and foreign", and finally achieved a prominent position in the industry. In this regard, Ding Shanhua said that for Shangshang Cable, it is more important to become stronger than to become bigger. Shangshang Cable will continue to adhere to the main business, with no distractions, and towards the corporate vision of "the number one in the industry, a century-old store, and becoming a cable manufacturer in China. Industry leader" keeps moving forward.

God never sympathizes with the weak. Since the beginning of this year, the demand in the cable industry has been insufficient, the supply of products has exceeded the demand, and the competition has been fiercer than ever. There are nearly 10,000 wire and cable enterprises in my country, 97% of which are small and medium-sized enterprises. on low-end products. The industry's average investment in research and development is less than 1% of sales; high-end products such as aerospace, nuclear power, electronics, automotive wiring harnesses, and ultra-clean cable materials for high-voltage cables mainly rely on imports.

In view of the above situation, transformation and upgrading has become a problem that cable companies have to think about. How should cable companies transform and upgrade? In Ding Shanhua's view, the key to the transformation and upgrading of the cable industry is to cultivate internal skills. This internal strength is to work hard on "product differentiation and cost leadership", that is, through the development of high-end materials and high-end products, to seize the commanding heights of cable technology and form "" Product differentiation", speed up the elimination and upgrading of outdated equipment, improve production efficiency, and improve product quality, thereby forming "cost leadership"; the integration of the two will eventually form the core competitiveness of the enterprise.