In recent years, the technology upgrading in LED screen industry are getting faster and faster, there are different degrees of excess capacity in this industry, both in sale and rental LED display screens field. In fact, serious overcapacity will make the LED screen companies face a huge survival crisis. Facing with these dilemma like lack of product innovation awareness,serious product homogeneity and low level of marketing, most LED screen rental and sale companies have no choice but lower the price; most medium and small size LED screen enterprises are forced to participate in the price competition in the market. Due to their own business strength, scale, etc. are not able to compete with these large enterprises. At last, most of these small enterprises lose heavily on their market as well as profits.
Nowadays, price competition in sale and rental LED display screens industry are quite frequent. It is determined by the current development environment and development stage of LED screen industry, it is inevitable. The LED screen rental and sale enterprises take price decrease as the customary means, and pursuit maximize interests and improve market share in the current competitive industry environment. In order to survive and develop themselves in the brutal market competition environment, both the LED screen rental and sale enterprises should seize the market share. Price competition, as the most effective means to seize the market, it is also reasonable why these LED screen enterprises prefer this. Once the LED screen industry is facing overcapacity, these companies’ first thought is the price promotions, large enterprises will start the price reduction first, many small and medium enterprises had to be forced to participate into this, then the domino effect outbreak, the price competition in both sale and rental LED screen industry will occur inevitably. From 2008 to 2011, China sale and rental LED screen industry has been developed and grown explosively; from 2011 on, this growth rate has slowed down, and even showed a downward trend. Actually, it is because there are many big events held in China during 2008 to 2011, like 2008 Beijing Olympics, 2010 Shanghai EXPO,etc. However, when these events finished, the drawbacks of over-expansion began to show up. There are too many LED screen rental and sale enterprises now, most are small and medium enterprises. During the development process, small and medium-sized LED screen rental and sale enterprises often take great efforts on expand the production scale but do not put more efforts on innovation, science and technology investment. Finally result in excess capacity and large amount of product inventory backlog, the price competition will occur. Price competition have both advantages and disadvantages: from the LED screen enterprise point of view, small and medium enterprises do not have deep analysis on their own financial budget. No matter they are forced to participate into price competition, or blindly follow the trend, their funding strand will break. From the product point of view, in order to survive in the price competition, many small and medium rental LED display screens enterprises are constantly challenging the bottom line of product quality, seriously affecting the public awareness and confidence to the LED screen industry , also seriously affect the development of enterprises and even the industry. Although the price competition resulted a huge stimulus to consumption, but it also have obvious negative effects. The current price competition in sale and rental LED screen industry has fallen into a vicious competition quagmire. This is more harm than good, it is undoubtedly overdraft the future of LED screen rental and sale industry.
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Glux LED ScreenLeading LED screen, creater, designer and producer 存档
October 2017
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