Industrial Production News
- Try your hand at new business models, firms told
Date: 4-Dec-2007 Sources: (People's Daily)
Domestic enterprises were urged yesterday to focus on using new business models to sharpen their competitive edge, as more foreign companies entered the domestic market.
Speaking at the award ceremony for the top 50 competitive enterprises in Guangdong yesterday, Liang Guiquan, director of the Guangdong academy of social sciences, said 'a war of business models was being fought'.
'More and more transnational companies have entered the domestic market with competitive business models, posing a strong business threat to their domestic counterparts,' Liang said.
Introducing new business models should take precedence over technological innovation to face this challenge, Liang said.
'Technology will change every day, but a strong business model will lead to sustainable development for enterprises,' Liang said.
In Guangdong, the top 50 large-scale companies saw a combined turnover of 1,567.4 billion yuan ($211.6 billion) this year, an increase of 27.6 percent over last year.
'They are the backbone for the local economy and of great importance to economic reform for Guangdong, one of the economic powerhouses in the nation,' Liang said of the companies.
'As a result, it is essential to increase their competitive edge by introducing new business models in a bid to further boost the local economy.'
Li Zibiao, director of the Guangdong Provincial Situation Study and Research Center, also called for 'more integrated economic reform' in Guangdong's eastern and northern area, because no companies there had made the top 50 list.
Of the top 50 large-scale enterprises, 25 are based in Guangzhou, the provincial capital, and 16 in booming Shenzhen.
'With a growing number of large-scale enterprises, the Pearl River Delta region will continue to see robust economic development in the near future,' Li said.
'But we should also attach more importance to economic reform in the province's east and north.'
Li said that Guangdong should cooperate more closely with Hong Kong and Macao special administrative regions to develop more competitive cross-border enterprises and further consolidate its leading position in economic development.
'Hong Kong and Macao have already developed a relatively sound economic system,' Li said.
'Cooperation with them will help Guangdong-based enterprises better integrate into the global economic market.'
Guangdong has been among the top economic powerhouses of the country, and its enterprises are pushing a number of brand names into international markets.
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