First, the Southwest Region:
1. A relatively closed market.
2. On the basis of the economic development of the western region, the demand for glass has been rapidly increased and dirty in recent years, resulting in rapid expansion of production capacity in the region, but it has been accompanied by oversupply and a rapid decline in prices.
3. In the future, it is highly unlikely that the “self-mutilation” situation will not be avoided to shrink capacity, and it will be unable to export capacity to other regions.
Disadvantages: high production costs (compared with enterprises in Central China).
The current price can prevent the large-scale entry of glass in Central China (Wuhan-Chongqing transportation cost 150 yuan).
Second, South China:
1. In the case of the continuous loss of the low-end deep processing business, the local building glass market and the advantages of the mid-to-high-end deep processing business are adhered to.
2. More complete glass production and deep processing industry chain.
3. The process is stable and mature, and the product quality level is high.
Disadvantages: high production costs, high labor costs, high costs such as taxes and fees, high financial costs, and high transportation costs to other regions.
Third, North China (Shahe):
1. Benefit from the advantage of high industrial concentration, continue to develop and promote the deep processing industrial park, and increase the proportion of consumption of its original film.
2. Continue to consolidate and strengthen cost advantages: supply chain integration and informationization.
3. Reduce dependence on price wars and gain profit-oriented.
4. Enhance logistics integration and improve efficiency (planned to open a regular class from Shahe to Tianjin before the end of March 2016): Good for export business.
Advantages: low direct production costs, low labor costs, low financial costs, and high industrial concentration.
Disadvantages: The quality of products is mainly in the middle and low end; the pressure on environmental protection is large: the major activities stop production or semi-stop production has a large impact; the export is mainly based on steam transportation, and the cost is high.
Fourth, Central China:
Before the bankruptcy of Wal-Mart, the strategic situation in Central China was not good. The sales to the southwest encountered great resistance. It was blocked by Shahe in the north, and was managed by Huaerrun and other companies in the east without finding a breakthrough. The shrinking demand in its own region has fallen into a strategic dilemma, which is likely to lead to a sharp fall in sales prices in Central China in 15 years and once fell below the cost level at the end of July.
Advantage:
1. Low labor costs, low financial costs, and low direct production costs.
2. Waterway transportation covers a wide area (along the Yangtze River basin).
Wuhan-Jiangsu area, the transportation fee is 50 yuan, far lower than the steam transportation cost of Shahe-Jiangsu-Zhejiang.
Disadvantages: The quality of products is mainly low-end and industrial concentration is low.

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