A broader view of manufacturing enterprises

Several manufacturing enterprises are reported to have invested in agriculture production. Enterprises should have a broader view into today's market, said a column in People's Daily (excerpts below).

Can you imagine an IT company running a plantation?

As overcapacity becomes a problem in the manufacturing industry, the recent investment of several IT companies in agricultural production offers some new thinking.

Actually, diversification has long been familiar for enterprises. Almost 10 years ago, Haier group, the leading producer of refrigerators, joined the competition for air-conditioners, washing machines and even TV sets when it found the market potential for its original products was limited.

However, after more than 20 years of competition, almost the whole industrial market is already divided among several giants. That requires enterprises to take a broader view. Investing in other industries will be a new trend for manufacturing enterprises, and agriculture will be a new hot point.

The investment in agriculture might also possibly accelerate its upgrading process. More accumulated capital will doubtlessly better organize the agricultural production, as well as make it easier to employ more advanced technologies.

Of course, that requires enterprises to combine the advantages of manufacturing industry and agriculture, instead of simply burning money. The agricultural investment of IT giants is a good start, and we hope more enterprises will have a broader view.