Adjusting the transformation of textile machinery enterprises in the enterprise structure requires “four-based”

Under the socialist market economy, enterprises have become the core players in the market. For China's textile machinery companies, adapting to a rapidly changing market environment is essential. This requires timely restructuring and reorganization to remain competitive. The question of how to restructure and transform the corporate model deserves careful consideration. The term "adjustment" refers to aligning the company's structure with market demands. If the current structure no longer fits, it must be improved or reformed. On the other hand, "transformation" involves shifting from the traditional "olive-shaped" structure to a more balanced "dumbbell-shaped" model. The olive-shaped structure typically features strong production and weak R&D and service capabilities, resulting in two small ends. The dumbbell model aims to strengthen both product development and after-sales services, creating two larger ends while outsourcing less critical components. During the restructuring process, companies can adopt a "four-main" approach, which lays the foundation for a more efficient and modern organizational structure. First, focusing on product development is crucial. It is the core of innovation and competitiveness. Only companies that invest in R&D can take the lead in the market. Second, concentrating on key manufacturing technologies for critical components reflects a company’s technical strength. Core parts should be produced internally, while non-core components can be outsourced to specialized suppliers, enabling better efficiency through collaboration. Third, the main assembly of products should be handled in-house. This ensures quality control and brand consistency. Once assembled and tested, the final products are branded and launched into the market. Lastly, technical services play a vital role before and after product launch. These services support users throughout the product lifecycle, ensuring continuous improvement based on user feedback and market trends. By embracing the "four-main" structure and transitioning to a "dumbbell-shaped" model, Chinese textile machinery companies can enhance their competitiveness. Combined with improved management systems and flexible operational mechanisms, these enterprises can achieve sustainable growth, moving from extensive to intensive development.

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