Capital M&A promotes the survival of the fittest in the LED industry

Judging from the mergers and acquisitions of many listed companies in the lighting industry, I believe that listed companies will tend to choose to acquire small and medium-sized lighting companies with good prospects and strong competitiveness. Although these small and medium-sized lighting companies are small in scale, they have reliable product quality, perfect management system and excellent team talents. These characteristics are valued by listed companies. Judging from the mergers and acquisitions of many listed companies in the lighting industry, I believe that listed companies will tend to choose to acquire small and medium-sized lighting companies with good prospects and strong competitiveness. Although these small and medium-sized lighting companies are small in scale, they have reliable product quality, perfect management system and excellent team talents. These characteristics are valued by listed companies. Because listed companies have huge financial backing, the acquisition of small and medium-sized lighting companies can fill their own market vacancies in a short period of time, quickly increase the overall market share and improve their own competitiveness. In the future, the development of the lighting market must be toward integration and alliance. The capital industry mergers and acquisitions in the lighting industry will not be too frequent, but this is the development law and inevitable result of the lighting market. Because the lighting industry has a clear division of labor, enterprises need to cooperate with each other to open up markets. For example, some small and medium-sized lighting companies focus on producing and processing lighting accessories, and this type of company will be happy to work with manufacturers that produce and sell finished lighting products. Of course, capital mergers and acquisitions in the lighting industry also have certain drawbacks. Although small and medium-sized lighting enterprises have certain R&D and innovation capabilities and flexibility, small and medium-sized lighting companies can flexibly adapt to market demand in terms of sales of product series and new product development. Regulation. After the merger, small and medium-sized lighting companies need to re-consider the development positioning and strategic layout according to the needs of listed companies, which will also have a certain market lag. I believe that capital mergers and acquisitions will outweigh the disadvantages of the long-term development of the lighting industry. The most obvious benefit is that capital mergers and acquisitions can reduce the homogenization competition among small and medium-sized lighting enterprises, achieve the survival of the fittest, improve product quality, and regulate market management. Some small and medium-sized lighting companies do not concentrate on specializing in product research. In order to win market share, they can reduce costs through counterfeiting and raw materials cutting, reduce product prices and disrupt market order, and capital mergers and acquisitions can effectively eliminate these shoddy small and medium-sized lighting enterprises. Promote the healthy development of the industry.

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