The economic value of the reputation of cabinet companies

With the change of social lifestyle, market dominance has gradually been mastered by consumers, and the era of responsible consumption has quietly arrived.

To put it simply, the era of responsible consumption is an era in which consumers have the right to speak. It opens up a new way of consumer interaction between customers and businesses.

The interaction between manufacturers and consumers has gradually evolved from a single vendor in the past to a situation in which new media “sets up” and consumers and manufacturers “sing a play” together. Consumers are no longer unilateral market habit recipients, and manufacturers can no longer simply dominate the market. The relationship between production and consumption has caused manufacturers to pay more attention to consumers. The change of consumption patterns and the innovation of consumption concepts have even affected and changed the way of social production. At the same time, they can promote the healthy, scientific and harmonious development of society and the environment.

For cabinet enterprises that rely on consumer choice to survive in the market, in the new era of consumption, we should pay more attention to the strategic adjustment of cabinet enterprises, fulfill the social responsibility of cabinet enterprises, shape and maintain the reputation of cabinet enterprises, and adapt to the new market selection needs. . It can be said that in the era of new consumption in the market of consumers, a good corporate reputation has great economic significance for cabinet companies.

Help cabinet companies win the market

In the market economy, as a microeconomic entity, cabinet companies face a market where producers, competitors and consumers are interdependent and interact with each other. The reputation of cabinet companies, the quality and price of products, and the quality of service are consumed by consumption. The evaluation was made. Only by winning customers can we occupy the market.

In proportion to corporate assets

The intangible assets and tangible assets of cabinet companies always complement each other. For cabinet companies, the loss of reputation not only means that the cost of depositing as a reputational investment is lost, but the value of tangible assets and the value of other intangible assets that are matched with it are also greatly impaired. The greater the damage to the reputation, the greater the penalty for cabinet companies.

Enhance financing capacity

Financing is the starting point for the establishment and development of a company. The development of any cabinet company is inseparable from financing activities. Especially in the growing stage of cabinet enterprises, as sales increase year by year, production scale continues to expand, more production liquidity is needed, new machinery and equipment need to be purchased or plant expansion, so that the demand for money capital of cabinet companies often exceeds their own If the scale of accumulation is developed solely by the self-accumulation of cabinet companies, it will lose development opportunities and curb the growth and development of cabinet enterprises. Therefore, the strength of financing ability has become an important factor restricting the further development and growth of cabinet enterprises, and the reputation of cabinet enterprises is the basis of the financing ability of cabinet enterprises.

Reduce transaction costs

Transaction costs are all costs outside the production chain, including the time, effort, and money spent by the parties to the transaction. From an economic perspective, reputation can reduce or save on transaction costs. For example, if a two reputable cabinet companies reach a deal, they can bargain without time and effort. They can not sign a written contract, and they can not be notarized by the notary office. You don't have to worry about the other party's failure to fulfill the promise. In short, the costs caused by the uncertainty caused by mistrust are saved, the transaction costs are saved, and the economic efficiency of cabinet companies naturally increases.

In other words, a good reputation is a trump card for cabinet companies, which can enable cabinet companies to achieve twice the result with half the effort in market competition and determine the future of cabinet companies. This is also why in the era of new consumption, cabinet companies should establish a business philosophy that values ​​reputation and work hard to create, protect and improve their reputation. When the reputation conflicts with the immediate interests of cabinet companies, it is necessary to put the reputation first, in order to sacrifice the temporary economic benefits in exchange for the long-term interests of cabinet enterprises.