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Floor of the market structure
Analysis of the overall market structure is an effective means of market competition status. In practice, through market concentration, product differentiation, entry and exit barriers, the market price elasticity of demand, market demand, the growth rate, short-term cost structure analysis, we can draw the entire industry in perfect competition or monopolistic competition state of the market, this research report analyzes the market structure of the floor the first three factors.
1) Low market concentration
According to research branch of data drawn from a description of the state of competition in the industry floor Lorenz curve. Can be seen that the Lorenz curve is very smooth, and biased in favor of full equality line. Small business market, an area of floor 80% of the number of firms, accounted for more than 60% market share, while the medium-sized enterprises accounted for only floor 20% of the number of firms, the market share of less than 40%, which shows that our industry's market floor basically in a state of perfect competition, there is no large and medium enterprises in the industry because of their size enough to cause the formation of monopolies in the economies of scale, while small enterprises are in the market for the inefficient competition.
2) greater product differentiation
Enterprises purpose of product differentiation so that customers can produce a preference for the brand, so that customers can effectively be products of the enterprise effectively distinguish with other similar products, which are competitive in the market to occupy a strong position.
Currently, the floor in the domestic market, due to the standardization and normalization of raw materials, the physical difference is small and basically from several large international brands, buyers Youyi enterprise-based, identify the product that they possess the physical characteristic differences in knowledge and testing methods, subjective preference is not strong, so product differentiation is not great.
Industry differences in the performance of most of the functionality embodied in the material. Now more and more of flooring materials feature rich application areas are expanded. At the high end market, some large enterprises due to its high R & D capability, has been in the industry-leading position in the formation of their own brand at the same time, continuous development of new functional materials, with high quality, good brand to improve their market share. In the low-end market, many small and medium enterprises have taken the market's competitive strategy to follow, in imitation of the main features of the market leader in products, while its price has always been a leader in product and market price to maintain a certain distance, with effective price difference to attract customers.
3) low barriers to entry and exit
At present, the floor is not very mature market, companies are basically at the same competition, companies only need to input into the industry that can lower the cost of production, construction, industry, most companies do not achieve the scale to reduce costs. Because relatively few big brands in the industry, the original business has not been established solid product (brand) awareness and reputation, New business start production (and do not require large costs) to compete for customers. Did not form barriers to hinder competitors from entering the industry, coupled with enterprise asset specificity and sunk without cost, because the plant and equipment can quickly shift to the production of mortar and paint, exit barriers are low. Result is that more small businesses access to fast, out of business, increased competition within the industry.