Challenges Faced by the TCL of Household Brands

From the political perspective, China’s accession to the WTO, the competitiveness of home appliances market will be growing; TCL will have to accept the challenge of many household brands. These challenges will bring our goods to exchange a big impact. Now farmers are getting richer, the consumption level increases. Later there will be more and more people use appliances.
From economic factors, the current domestic economic impact of the economic crisis is not large, but gradually changed the domestic economy was getting better and better, the city people and rural people’s spending power is increasing, but because the more tired goods more price increases Fast, so people need the degree of electronic products become low. From technical factors, the people now need more and more domestic TV, the products are constantly updated.
However, the domestic production technology of new technologies, is still smaller than the level of international production technology, production technology, we may be big blow, and perhaps only get a small fee. From the social and cultural factors, China’s population structure is complex, each of the requirements for electronic products are not the same, especially for mobile phone consumption among young people account for a large position.

The consumption level of each person is different; the products are not the same need, so that people differ greatly in need of electronic products. As a large electronics company, TCL has been facing a lot of competitors. Fields in plasma, Panasonic, 20% market share and become market leader, Panasonic is the vanguard of technology with technology. In the LCD TV market, market share reach of first place, Sharp at 28% of the market occupies the second place.
The stolen Chang Hong is the first to enter the field, and put the largest companies, in terms of Chang Hong’s rear-projection TV screen, functionality and price point of view still holds in the country’s most eye-catching position. For TV, the buyer has a strong bargaining power, because most buyers of TV consumers, individual consumers will be very concerned about product prices. TV is not a necessity in life, is increasingly supported by computers and other electronic information products to replace, consumers are not eager to buy.
Many electronics manufacturers, greatly reduced in order to seize the market price of the TV as an electronic information products consumers great choice, convenient channels of information, the information consumers want to know the market very easily. TCL is the internal environment from the following points. TCL lot of resources, from the tangible assets of view, TCL Company continued the production of emerging products. Many people like TCL’s electronics products.
TCL latest production of LCD TVs, to protect people’s eyes, can also reduce the energy consumption of the TV. From the perspective of intangible assets, TCL won many awards. For example, in 2009, received 60 years in China Brand Image Award; TCL’s brand value in 2009 for the first time exceeded 400 billion Yuan. ?(Docin, 2011) TCL has a very good team, TCL of all employees are aware, do not build an internationally competitive corporate culture, can not become internationally competitive enterprises.