The drawbacks of the production side enterprise
(1) scale expansion -- growing behind the weak.
Parts processing of export-oriented enterprises to realize the diversity of the trap, clear propose still in the original within the industry continued to seek the development, do not make diversification. About how to seek the development within the industry in the original problem, these enterprises high-level operator's answer is almost always "enlarge production scale".
But, as the domestic Labour costs, the rise of the processing of export-oriented enterprises manufacturing tends to decline, production links profits in industrial chain's competitive position also tends to decrease; Instead, market segments of the profitability and competitive position in the relative rise - - all industries developed to a certain stage after, will appear this kind of phenomenon.
As the first few years of the household electrical appliance industry have faced this situation, forcing home appliance manufacturing enterprise finally had to implement market integration strategy, to achieve market segments of the penetration and control. Expand production scale, although can improve enterprise in the industry's competitive position, but because did not improve the position in the industry chain, but also can cause for market segments of the further dependence, status may be more passive.
Processing of export-oriented enterprises in the industry development of consideration, to expand the scale of production problem cannot do simple processing, considering the production scale expansion in the way, especially need careful, otherwise, not only can enhance competitiveness, still can increase enterprise transition or exit cost.
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