Six Market Effects of Supply and Demand for CNC Cutting Machines in China

The CNC cutting machine industry has developed rapidly in recent years. Various specifications and models not only greatly enrich the market terminal requirements, but also provide strong support for the rapid development of the downstream industry, forming a gantry CNC cutting machine, portable CNC cutting machine, desktop CNC cutters, intersecting wire cutters and other relatively complete industry categories, and formed a large number of unique industrial bases, such as a group of large-scale production enterprises in Dongguan, Dongguan, Hubei and other upstream and downstream products and various accessories complete Industrial clusters. The center of CNC cutting machine trade activities formed by enterprises in Dongguan and surrounding areas of Guangdong Province has gathered a large number of people and has a strong scale effect. This has provided a strong backing for the rapid development of Guangdong. The marketing and development of CNC cutting machine companies need to take into account various value effects, such as the scale effect formed in the Pearl River Delta region and the resulting benefits are obvious to all, and some large CNC cutting machine companies should pay more attention to the scale effect. Value, this is the only way for the development of CNC cutting machine companies.

The marketing and development of CNC cutting machine companies need to take into account various value effects, such as the scale effect formed in the Pearl River Delta region and the resulting benefits are obvious to all, and some large CNC cutting machine companies should pay more attention to the scale effect. Value, this is the only way for the development of CNC cutting machine companies.

1. The leading effect is one step ahead, leading step by step. Step by step, first, this effect is applicable to the CNC cutting machine market. Under certain circumstances, due to a particular technology or brand leading other companies in the same industry, it will inevitably drive the development of the entire enterprise.

2. Lock-in effect When a user moves from one brand of technology to another, it will certainly pay a certain cost for this transfer. When the transfer cost is too high and users lose their feet, the user is locked. When a high-tech product is successfully developed and wins the market, it can easily grasp the future market and take the initiative in fierce competition. This is also applicable in the CNC cutting machine market, first investment, because the cost of CNC cutting machine is too high, it will inevitably be discouraged by the user, but once this CNC cutting machine products are recognized, then this CNC cutting machine products will inevitably lead the industry To promote the development of the industry.

3. The Matthew effect This is an era where winners take all-or-nothing. Rich people enjoy more resources - money, honor and status. The poor have nothing. The poorer the poor, the richer the richer. Many people with friends will make frequent contacts to make more friends, while those who lack friends will go. Com has always been alone; people who have a reputation will have more chances to show their face, so they will become more famous.

4. Gear-effects Large companies do not develop, and once they develop, small businesses are left behind. The gear effect is also applicable in the CNC cutting machine market. Some large companies have advantages in terms of resources, money, contacts, information, etc. Once they are developed, they will surely take a big step. The small companies will have capital, talent, information, etc. Resource-constrained development is slow and even stalled. Such large companies have increasingly surpassed small businesses in the industry and have gradually become industry leaders.

5. The more agglomeration effects are those companies with excellent performance and abundant funds, the more banks want to give it to them, which is the accumulation effect of funds. Under the financial crisis, some large-scale CNC cutting machine companies have excellent performance. Once there is a financial problem, whether it is through banks. Com or other companies will share the corresponding ease of the current difficulties, it will inevitably be easier to gather funds; some small CNC cutting machine companies once they encounter funding problems is almost impossible to move.

6. Scale effect When the enterprise's production reaches or exceeds the break-even point, it will form economies of scale. Because any production is costful, it generally includes fixed costs and variable costs. To achieve profitability, the sales revenue must be greater than the production cost, and the fixed costs among them are constant, so the more production, the less the fixed costs allocated to a single product and the more profitable.

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