Brand Economic Approach To Independent Innovation Of Equipment Manufacturing Industry In China

This article's intention was to use brand strategy to solve problem of Chinese equipment manufacturing industry how to obtain independent innovation market to maximize profits. Marx "Das Kapital" referred to: "the difference between the various economic era what does not lie in production, but rather how the production, what the production of labor." Equipment manufacturing industry (EMI) in our country are important pillar industries, but the industry has been developed in Europe and America firmly in control, in the face of a strong incumbent, as the hair after our country the equipment manufacturing industry, independent innovation has become the only way out.This article holds that independent innovation is not the purpose of enterprises that is not for independent innovation and independent innovation, it is only to revitalize the equipment manufacturing industry of our country as a means to give enterprises more wealthy continued profitable growth is the ultimate goal of independent innovation. In short, only for the enterprises must be able to market the profits of independent innovation is the successful and efficient, otherwise, self-innovation is null and void. Independent innovation of past research, are based on a hypothetical premise: all of the independent innovation have profits of a market. Truth is it? From economic and social reality, the independent innovation of equipment manufacturing industry is able to market profits is uncertainly. How to decline uncertainty of market profits of independent innovation of equipment manufacturing industry, to solve problem of Chinese equipment manufacturing industry how to obtain independent innovation market to maximize profits become important research value of this article lies.This paper bases on name-brand economy perspective in different of previous studies. It will belong to the theory has been applied to new areas, namely, the theory has been used to solve practical problems. By using analytical methods and economics analytical tools, under the framework of the element of the brand, paper study on maximize market profits of independent innovation of equipment manufacturing industry. In excess of economic conditions, the solution to of prerequisite problem for maximize market profits of independent innovation of equipment manufacturing industry. This article was first proposed and argues, the brand is important constraint condition to gain maximize market profits of independent innovation of China's equipment manufacturing industry. It is brand that can reduce uncertainty of market profits of independent innovation equipment manufacturers, in other words, under the brand condition, independent innovation of equipment manufacturing industry only can access maximize market profits.The research structure is to define the concept of the basic and assumption firstly, to build models of explanatory secondly, and to build model of solve finally. The main contents are as follows:First of all, the economic assumptions and concepts are defined. Independent innovation to address market a prerequisite for maximizing the return on the issue at building a thesis before the interpretative model, in order to avoid ambiguity. Paper set the limited rationality, global competition, a surplus of the economy as the basic assumptions. At the same time, define and standardize higher frequency of occurrence of the text of equipment manufacturing industry, independent innovation, industrial chain, and brand selection costs and related concepts clearly.Secondly, this paper is part of the economic explanation. Based on the Chinese equipment manufacturing industry products and the analysis of market characteristics, the use of cost analysis of brand choice paradigm (Sun Yue Yao, 2005), under specific assumptions, to build our country proceeds of the equipment manufacturing industry market by three models.The first static model describes market profits of equipment manufacturing, which is based on the firms' profits. In order to make qualitative research, this article from the equipment manufacturing industry products and market characteristics, as well as from evolution model analysis of trademark to brand, to reflect brand category degree how various indicators to influence the equipment manufacturing output and input changes though brand as a factor of the production function. If enterprises would adopt single brand category and right brand strategy to meet consumer's demand, they can make consumer out of control from upstream material's enterprises and downstream enterprises, followed by integration of industrial chain, and enhance control and eventually become a leader, in order to achieve lasting maximize profit. At the same time, though analysis the competing model of industry chain enterprises, we found the introduction of the brand, equipment manufacture industry use consumer to control price of raw materials and manufacturers. In addition, this paper analyse the whole industry chain of the equipment manufacturing industry profits and found that after the introduction of the brand through the industry chain enterprises competing model analysis, and to demand the law of the theoretical basis. We found that equipment manufacturers use on the end consumer in the lower reaches of the role of manufacturers, then made the pricing of raw materials and products after the introduction of the brand. This paper shows the differences of equipment manufacturing industry by using a simple game analysis.The second dynamic bargain game model describes market profits of equipment manufacturing, which is based on the market competitive. This paper uses cost analysis choice paradigm to build the equipment manufacturing industry brand dynamic explanatory model. Under the framework of bargain game theory analysis, this model links the discount factor 5 and changes in the cost of consumer choice. The equipment manufacturing industry in the upstream and downstream dynamic game in the introduction of the "brand" to reduce its discount rate to make it dominant in the negotiations, and then affect the balance of bargaining. This article is further evidence of theoretically "brand" so that the upper reaches of the equipment manufacturing industry in the bargaining game edge and to survive in the intense market competition. This not only further enriches the "middle product" theory of brand economics, also tries to provide a theoretical basis in an open economy for China's independent innovation.The third static entropy mode describes market profits of equipment manufacturing, which is based on the market terminal. This article originated "entropy" in the thermodynamics. Entropy was introduced to the concept of brand strategy for the equipment manufacturing industry studies. From the "entropy" perspective, according to equipment manufacturing industry chain aspect of the various industries, to build terminals entropy and industry chain entropy for explanation mechanism of entropy of brand and industrial system. Argumentation theory: the introduction of the brand, by reducing the terminal consumer purchase of uncertainty, not only changed terminal entropy, but also able to change industry chain entropy, including equipment manufacturing. Whole industry chain would increase profits. At the same time, the article puts forward concept of brand entropy and optimal brand entropy by expanding. This model is a reasonable explanation for the brand and equipment manufacturing enterprises in the coupling mechanism, further elaborated that Brand building not only increased market gains, but also the whole industrial chain to increase market revenue through the middle Products brand. Thus further confirms the brand of the important role of intermediate products. At the same time, this paper further enriched brand theory.Finally, the paper builds organization strategy solution model for brand of equipment manufacturing industry. Equipment manufacturing industry brand strategy was lack of organization strategy from the analysis of in the organization in China. This article based on position of brand manager and process reengineering, system functions of brand manager was introduced to equipment manufacturing industry organization strategy, and to Xibei Bearing Co.,Ltd.and Shenyang High Voltage Complete Switchgear Co.,Ltd.as examples, to build organization strategy of brand for solution equipment manufacturing industry China.In short, this article focused on issue that independent innovation of equipment manufacturing industry how to achieve maximum profits under constraint conditions of brand. The brand is the important constraint condition which achieves maximize market profits of innovation for equipment manufacturing industry in China.