Research On The Causes And Countermeasures Of Shenyang Machine Tool Zombification

In 2015,faced with the severe economic situation in China,China proposed a supply-side reform,with the aim of resolving excess capacity,eliminating backward production capacity,and optimizing the industrial structure.This reform is aimed at companies that are backward in capacities,have no innovation ability,and rely on bank lending and government subsidies to survive,namely,zombie companies.China's machine tool industry has also been hit by this reform,and SMTCL is no exception as the leader of China's machine tool industry.SMTCL loses money in years,profit ability is bad,and the influence of external economic factors,gradually becoming a zombie company.Based on the previous research on zombie companies,this paper deeply explores the reasons for the zombieization of Shenyang machine tools.The internal reasons for the SMTCL becoming zombified are three points: Firstly,at the operational level,the technological development of SMTCL lags behind.The low-end products are surplus,while the high-end product market is occupied by foreign companies,and the product structure cannot keep up with the changes in market transformation.Secondly,the strategic mistakes of SMTCL management.Blindly expanding the scale of the company did not produce scale effects,resulting in high operating costs and poor profitability.Thirdly,at the management level.By analyzing the management's compention,it was found that SMTCL had no obvious reward and punishment measures before,which made the management inefficiency.In addition,the paper discusses the strategy of SMTCL to deal with “being zombified”,and puts forward three suggestions for SMTCL: First,be wary of “bigger”,and SMTCL has a tendency to expand the scale of 5D Smart Valley.The second is to enrich the product range.It has operational risks on concentrating on the development of i5 intelligent machine tools.I5 is not yet able to resist the market risk for SMTCL.The third is to develop mixed ownership,introduce more dynamic capital,and improve the efficiency of business operations.