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Bearing industry competition

First we look from the bearing industry competition structure, the current bearing enterprises, over the years the bearing demand change, make the domestic bearing industry scale of production gradually expand, leading to fierce competition, some target not exactly a slightly inferior position in the competition of enterprise, the chance to grab some famous enterprise market, also make some small and medium-sized enterprises under pressure. 

Many companies are looking for ways to breakthrough under the action of the pressure, and how to break through the bottleneck, is still a lot of enterprises are faced with the problem. Now some smaller companies began to expand the market by the development of the mobile terminal customers. 

In addition, there is the impact of the new entrants to the industry. Due to greatly increase the domestic demand for bearing, new entrants increase. Entrants is good for the industry have a crisis. Can provide a new resource for industry as well as carved up the whole bearing the share of the industry, in the share of the competition, some outdated technology domestic bearing enterprises faced the crisis of decline and even the entire market share. But new entrants face barriers to entry in the new field. Even the products difference, capital needs, switching costs, the government behavior and policy, not controlled by the size of the cost disadvantage of geographical environment, etc, is very difficult to solve by imitation. Bearing is a high requirement of technology of industry, especially in the application environment on the technical requirements is more and more strict, is not easily into the potential. Bearing industry, therefore, the potential entrants risk is not big.

 

Another is competition from substitutes. This major is oil. If unrelated business because the products have the effect of replacing each other, so must become competitors, in order to win in competition, will be taken to reduce the price, products have better performance to improve the competition for the market. 

Supplier also plays a certain role. The strength of the supplier power mainly depends on what inputs as they provide to the buyer, when the supplier provided input elements of its value constitute the proportion of the total cost of the product is bigger, buyers is very important for buyers product production process, or seriously affect the buyer the quality of the product, the supplier for the buyer's potential bargaining power is greatly enhanced. The total number of buyers is less, and each buyer purchases of large, large proportion of the seller's sales. Buyers purchase is basically a standardized products, at the same time buying products from multiple vendors is completely feasible in economy. After the buyers have the ability to achieve the integration, and the seller can't forward integration. Thus, bearing products downstream customer bargaining power is low. 


In general, meet the following conditions of the supplier group will have a stronger bargaining power: - the supplier industry (such as bearing raw materials industry) to have some relatively stable market position and is not subject to intense market competition plagued by control of enterprise, its products of many buyers, so that each individual buyer is likely to become the supplier of the important customers. Supplier each enterprise's products have certain characteristics, so that the buyer is difficult to convert or conversion cost is too high, or it is hard to find a substitute for enterprise products compete with suppliers. Before the supplier can easily implement to the joint or integration, and the buyer after the difficult to joint or integration. In general, bearing products upstream suppliers bargaining power is higher. 5, customer's bargaining power, buyers (bearing) downstream customers through its demand and requirements to provide higher product or service quality ability, to influence the profitability of the existing enterprise in the bearing industry. Generally speaking, buyers satisfy the following conditions may have stronger bargaining power: 


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