Look through the phenomenon of security companies under the pressure of essential inflation

In the first half of 2011, the land of China was overshadowed by the dark clouds of inflation. Even the voices of everyone were heard. According to the statistics of the National Bureau of Statistics, the national consumer price level in the first half of 2011 increased year-on-year. 5.4%, with the continuous rise of the consumer price index, people actually felt the increase in commodity prices, but also felt the pressure of inflation. The rapid increase in the price of goods has led to an increase in the cost of living. The rise in raw materials, labor, and rent has brought great challenges to the promotion of security products and corporate profits. At the same time, the pressure of RMB appreciation has also increased the pressure on exports of products. Then, when inflationary pressures are increasing, how do some outstanding security companies respond?

Focus on innovation to promote core competitiveness with technology According to statistics, in the first half of the past, security companies purchased raw materials, electronic components, ABS plastic engineering plastics, plastic shells, aluminum alloy shells, transformers, circuit boards and other products prices It rose by 10% to 15%, copper prices rose by 30%, and steel prices rose by 17%.

Under the condition of high costs, the development of technological innovation may be one of the means by which security companies can effectively alleviate inflationary pressures. Technological innovation is different from other cost control methods. On the one hand, it can significantly improve the quality of products and bring them to customers. For a better and better differentiated experience, on the other hand, it has greater flexibility in reducing production costs and has great potential. However, the results of scientific and technological innovation usually take a long time to be realized. In a short period of time, an immediate effect cannot be achieved. The result of massive investment in resources also has considerable uncertainty. Therefore, technological innovation can be used as a long-term response to persistent inflation. Strategy. In the short-term strategy, companies can provide products with more targeted, better quality, and more powerful products through a series of measures such as product optimization and product integration.

Focus on detail optimization and perfect management mechanism The key to enterprise operation cost control is the management level of the enterprise itself. Enhancing the management mechanism of the enterprise is a complex and huge project. During the implementation process, the enterprise should strive to pay attention to every detail and improve the details. Mining potential for controlling costs.

There is always room for companies to explore the hidden potential and increase the cost competitiveness. The internal factors such as waste of time, waste of raw materials, and unreasonable communication costs, which have a negative impact on the cost of a company, tend to persist for a long time. Low-quality products or services also increase costs for the company. All these aspects are relatively large. The room for improvement. Security companies attach importance to cost management. On the one hand, they need their own professional cost management talents, they can provide real, standardized, and refined cost accounting and analysis, helping companies identify the space and direction for cost improvement; on the other hand, they need corporate human resources. The department can create an atmosphere of improvement, and organize all employees to carry out activities such as reducing waste, optimizing processes, and rationalizing proposals, so as to improve operational efficiency and reduce costs.

At present, in the face of inflationary pressures, certain costs of enterprises will increase, but it does not mean that they must reduce their wages. If they can use fewer people and each person works more efficiently, even if wages increase, it is also possible. The overall labor costs will actually decrease.

Summary From the perspective of the development trend of the entire industry, security is still a sunrise industry. The demand is not only very strong, but many new applications have emerged. It can be said that opportunities are everywhere. Therefore, there are still many measures to overcome inflationary pressures for security companies that are interested in expanding their business in the security industry. The author believes that although unfavorable factors are difficult to translate into favorable conditions, we can change our minds under the pressure of unfavorable factors, give birth to greater motivation, break through the bottleneck of development, surpass ourselves, and embark on a healthy and high-speed sustainable development path. .