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What is the main reason behind the sudden closure of the wholly foreign-owned Shenzhen factory?
It is reported that Stanley Black & Decker Precision Manufacturing (Shenzhen) Co., Ltd., one of the top 500 enterprises in the United States, suddenly stopped working. Not long ago, relevant columns in Guangdong also interviewed the company and spoke highly of some of their structural innovations. The sudden closure of large factories also made the world sigh. The main reason is the influence of epidemic situation and market environment.

Since the outbreak of the epidemic in China at the beginning of this year, with the joint efforts of the people of China, good results have been achieved. However, the global environment is still not optimistic. In some western countries, due to the neglect and inaction of the authorities, the epidemic has seriously affected daily life and made it impossible to work. Users have little demand for products, and the time to resume work and production has been postponed repeatedly, because the epidemic can't deliver products to consumers, which has had a certain impact on big manufacturers.

In order to improve the competitiveness of peers, the big factory decided to adjust the production structure and improve the competitiveness of products, so as to better compete with peers and increase market share. However, due to the possible deviation of market strategic positioning, some plans have not achieved the expected results. They want to optimize management, develop digital manufacturing to improve production efficiency, liberate people's hands and reduce workshop personnel through robots and other methods. However, the target does not match the strength of its own big factory, and there is no way to chew this hard bone at once. The cost of investment is increasing, but the income is negligible. As a result, large factories cannot operate normally. At the same time, the current international trade situation is also very severe. Some western countries put forward unreasonable demands, and trade protectionism is very serious, which leads to higher and higher trade barriers. In this market environment, it is difficult for large factories to survive. Based on the needs of strategic development, we have to start to re-integrate resources to improve our competitiveness. The closure of large factories is only a microcosm of global enterprises in this era. In order to overcome the influence of epidemic situation and market environment, all enterprises have heard that they should fully understand their own enterprises and formulate relevant strategies reasonably.