Lighting Enterprise Standard Competition Strategy and National Standards Development Plan

According to the two critical dimensions of technical standards and user installation foundation, in the standard competition, enterprises have four technical standards strategies that can be selected.

Standard leading strategy

When companies have standards and have established a large user installation base, companies will implement a standard-led strategy. The specific meaning of this competitive strategy is the formation of corporate control standards and the development of leading standards, making this standard the de facto standard, the only standard and the future standard, thus using the standard to achieve value monopoly, obtain sustained profit and lead the industry. development of. Dongguan Qinshang Company is a classic example of the standard-led strategy. They are the main players and owners of local standards in Guangdong Province and are also the main participants of national standards. The standards make the company have high profits and huge market. .

Specifically, companies implementing a standard-led strategy should:
(1) Keep the standard ahead. Enterprise-led standards must be both current standards and future standards, so that they can lead by step by step. To this end, companies that dominate the standards must maintain continuous innovation.
(2) Pay attention to customer needs. In the establishment of the secondary standard in Dongguan, the key factor for winning is that it is more perfectly adapted to the needs of customers than other competitors, increasing the opportunity for products to be adopted, thus establishing the standard status of enterprise proprietary technology.
(3) Integration value advancement. In order to make the standard technology widely adopted, enterprises must simultaneously promote the production and application of complementary products related to them, and provide users with a synergistic system product value, which is the integration value advancement. It is also a powerful strategic defense, and standard leaders can take advantage of the complementary “association” of standard assembly to create huge barriers for incompatible challengers.
(4) Expanding the profit model. Having the standard does not necessarily guarantee the profitability of the enterprise: The LED street lamp enterprise standard is not the earliest in Dongguan. Dongguan Qinqin realized the great influence of standardization on the future development of Qinshang Company in the process of participating in the national standard of LED lighting for road lighting. However, most of our similar products do not realize that the road to success in Dongguan is only in public relations. Therefore, in the standard-led strategy, it is necessary to expand the profit model, and obtain profit from various channels such as sales of standard products and complementary products, licenses for technical standards, product upgrades, and after-sales value-added services.

Standard challenge strategy

When companies don't have existing standards but have the most powerful user-installed foundation, companies can take advantage of the user-installed foundation to challenge existing standards and make enterprise proprietary technology the de facto standard. To win standard competition, this is the standard challenge strategy.

In fact, the standard challenge strategy can often be seen as a challenge to the old standard by the new standard, and the challenger builds a new standard by triggering positive feedback with a strong user-installation foundation. Therefore, in addition to the standard-challenge strategy that requires the same attention to customer needs and provides system value to customers, the standard challenge strategy requires companies to:
(1) Take advantage of the latecomer. The advantage of the latecomer is that the late-stage enterprises face less technical risks and market risks than the pioneers, and only need to pay a much smaller number of technological R&D costs, market development costs, and product sales costs than the pioneers to achieve a series of advantages. Standard challengers can take advantage of this and build a strong new standard by improving existing standards and solving problem defects.
(2) Control the lockout period. In particular, the challenger needs to control the lock-up period to effectively avoid simultaneous large-scale conversions of users, thus “making competitors unable to achieve economies of scale”. The length of the control lockout cycle depends on the technology cycle, the duration of the contract, the age of the durable equipment, the economic life cycle of the complement, the enthusiasm of the external supplier, the willingness of the customer to switch, and so on.

Standard promotion strategy

When a company has standards, but the relative user base is small, the main strategic task of the enterprise is to make the existing standards widely adopted, thereby expanding the user installation base of the standard and making it gradually become the de facto standard. Adopt a standard promotion strategy that is a strategic goal.

The standard promotion strategy focuses on the establishment and expansion of the user installation foundation, and establishes the standard status of enterprise technology by promoting user selection. The strategy requires companies to:
(1) Strive for policy support. In the standard promotion process, users are most likely to be “excessively inert”, and the most effective way to solve “excessive inertia” is to seek policy support. Because the demonstration effect of policy support can effectively reduce the risk of technology adopters, and greatly promote the adoption of new technologies.
(2) Forming a standard alliance. Companies need alliances to generate positive feedback. The establishment of the standard alliance distracts the risk of standardization and avoids the difficulty of unilaterally upgrading the technical paradigm to the dominant design.
(3) Implement penetration pricing. Infiltration pricing often helps companies quickly advance the initial adoption of products and standards. However, penetration pricing is a double-edged sword for companies, and it is only suitable for phased adoption.
(4) Moderate open standards. The so-called moderate open standard is to limit the opening of the standard and avoid losing control of the standard in the promotion process. Dongguan Qinshang Company lacks how to conduct more effective and deep and long-term activities in the process of developing and promoting LED street lamps, and ultimately wins greater market opportunities. It can be seen that it is necessary to have open standards in a controlled manner.

Standard compatibility strategy

When an enterprise has neither the standard nor the advantages of each user's installation, the only option the company can make is to seek interconnection to achieve compatibility with the standard, thereby sharing the market potential provided by the standard user installation base. Volume, this is the standard compatibility strategy, which is the basic strategy for companies to survive when they are at a disadvantage in standard competition. Since the LED core technology standard is controlled by Dongguan Qinshang Company, other LED street lamp manufacturers in the province must implement this standard compatibility strategy, and the leading enterprises are formed in this way.

The standard compatibility strategy can only be a new strategic approach to the emerging market and a competitive strategic choice. In addition to obtaining standard licenses, companies implementing standard compatibility strategies can:
(1) Use adaptive interconnection. Adaptation is a technology product that achieves compatibility between different technologies and interconnects between different installation bases. For example, to accept the key technology or service or brand effect of Dongguan Qinshang Company. Adaptation enables weak companies to survive and thrive in standard competition.
(2) Force the standard to be open. The strategy is to form alliances to support open and competitive technologies. The role of the alliance is to help open technologies quickly reach critical user scales, thereby competing with existing standards and forcing them to open up.

Guangdong lighting enterprises declare to participate in the drafting of the 2010 national standards, local standards can be contacted: Wu Yuwen contact telephone 13528164168

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