At present, the tool business through continuous learning and strategic planning, has been in the market accounted for half of the country, but the company is still in the development process highlighted several deadly problem, if attention is not enough, handled properly, will seriously affect the business development and progress.

Handling of the “low” put “high”
Technology with low technological content. This stage, the carbide cutting tools in developed countries account for the dominant position of the tool type, the proportion of 70%. The high speed steel cutting tools are growing at a rate of 1% to 2% of the rate cut, the proportion has dropped to below 30%. Meanwhile, the hard alloy cutting tools in China has become the main tool required for processing enterprises has been widely used in motor vehicles and parts manufacturing, mold manufacturing, aerospace and other heavy industry, but our tool enterprises are blind, large numbers production of standard high speed steel and some low grade tool, not taking into account market saturation and business needs, eventually with high added value, high tech tool in high end market, “hand over” to foreign companies. Data show that China’s current annual sales of about tool 145 billion, of which the share of carbide cutting tools less than 25%, but domestic manufacturing carbide cutting tools needed to have occupied more than 50% of the tool, which kind of blind production has seriously failed to meet the growing domestic manufacturing carbide cutting tools on demand, creating a vacuum in the high end market, eventually occupied by foreign enterprises.

Products with low added value. In 2007, China produced 16,500 tons carbide, there are 4,500 tons for the production of cutting tools, a considerable number, and Japan. However, the value of tool made of only 800 million U.S. dollars, far less than Japan’s 2.5 billion U.S. dollars, which fully shows that efficient internal hard alloy cutting tools and the overall production level is still a considerable gap between foreign countries. Therefore, domestic enterprises can not meet demand under the premise of the needs of the manufacturing sector had to rely on a large number of imports. Data shows that the major high end foreign tools in China market, the sales growth rate of 30% over the average annual growth rate of domestic knives.

Integration services and international non
Multinational corporations, such as Germany male grams, Japan Dai Jie, Danmaiyouni Merck, tool manufacturers, in the long history of development has accumulated rich experience in production, which also determines the form of their service is no longer “a hammer sale, “but only to customers beyond the initial sales stage tool, according to the customer in the production process tool problems encountered, in a timely manner a solution, such sales into the production process of high level has become the usual form of the sales practices of foreign companies, which is why the well known tool of your business produces products which are market, some Chinese enterprises, though “out widely,” it can not win the favor of one of the reasons our customers.

Enterprise Information road block
The 21st century network and information age, the degree of enterprise information to measure the level of business will be an important indicator of the level of modernization. Network, information can not only enhance business office efficiency, save office expenses, accelerate the reaction rate, can also provide market information, assist enterprises to judge, to build brand.At the same time, it value, know how to help media companies themselves are also differences of foreign tool one of the phenomena. Every time before or during major exhibitions, a number of internationally renowned media companies will help the industry to serve its own brand or a new product promotion, corporate executives embrace and attach great importance to media interviews, but some Chinese companies may have ” shy “or scruples, and do not want to accept media interviews and reports, ultimately missed the promotional products and business of” free “opportunity.

The lack of “strategic alliance”
This stage, as the rising star of Chinese tool companies alone the power of a very difficult technology and quality to compete with large international companies, enterprises and enterprises need to break the “go it alone,” the limitations of working closely complement each other , formed a strategic alliance to break the monopoly of foreign brands in the high end market. The “foreign strategic cooperation” should be regarded as a kind of the best, work as above set up a joint venture with Italy on the excellent SU Machine Tool (Shanghai) Co., Ltd., Hanjiang Tool Co., Ltd. established a joint venture with the Blazers coating coating center, a work with Kazakhstan Germany established a joint venture PVT coating coating centers are enhanced through cooperative forms of enterprise competitiveness and market share.

Serious waste of resources
Data show that in 2007, China produced about 80,000 tons of high speed steel, accounting for 40% of global output, but the absence of accurate knowledge of market demand and supply information so that production of a large number of surplus high speed steel cutting tools, had to low sales, lead to a large number of inefficient tool manufacturers, but also a serious waste of a lot of valuable tungsten, molybdenum and other scarce resources. Similarly, China carbide 16,500 tons annually, it accounts for about 40% of global output. However, the highest value added products by Carbide cutting blade yield only 3 thousand tons, accounting for only 20%. Thus, on the one hand the domestic shortage of badly needed hard alloy cutting tools, carbide on the other hand also a valuable resource not fully utilized.

80,000 tons of high speed steel and 1.65 million tons of carbide, cutting tools produced by the final sales total only accounted for 15% of the global total, which fully reflects the extensive development of the industry level and waste of resources serious.Industry people agree that the Chinese economy along with the rapid development of the past 30 years, manufacturing will become more powerful, the market space will be the same as with the broad U.S. and European markets, so that Chinese enterprises should be long term interests of an orderly land cultivation internal strength, to seek a breakthrough soon bigger and stronger, finally, “proximity and easier.”

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