Certainly explains how they’ve been able to undercut U.S. drone manufacturers on price so effectively. Same concept behind Airbus’ advantage over Boeing.
All good points.The Chinese government has their fingers in just about every significant company and industry in China, but they generally don't subsidize product costs ... at least not directly. They might twist the arms of suppliers for access to parts, etc, but I'd bet that DJI's market advantage is due to three factors:
1. 70% global market share. That alone brings competitive advantages of all sorts.
2. Access to lower cost labor and closer access to world class large scale manufacturing. There is a reason companies like Apple do the majority of their manufacturing in China.
3. Simple performance. DJI is tough to beat for reliability and features. I'm not saying they are heads above anyone else, but nobody that I know beats them across the board.
I’m not sure why this is a surprise to anyone that understands China. It is COMMUNIST, meaning there is NO private ownership of anything without state involvement. They don’t even own their own houses. Everything is ultimately owned and controlled by the communist government.Drone company DJI obscured ties to Chinese state funding, documents show
The Chinese firm received funding from several state-backed investors, despite repeated claims that it hasn’t taken money from Beijing
Chinese drone maker DJI, a leading supplier of drones to U.S. law enforcement, obscured its Chinese government funding while claiming that Beijing had not invested in the firm, according to a Washington Post review of company reports and articles posted on the sites of state-owned and -controlled investors, as well as analysis by IPVM, a video surveillance research group.
I would disagree with your general premise that the Chinese government does not subsidize product costs which I would presume you mean production cost. The Chinese government is involved in most development of technology based products. The price of every product produced has a development component added to it.The Chinese government has their fingers in just about every significant company and industry in China, but they generally don't subsidize product costs ... at least not directly. They might twist the arms of suppliers for access to parts, etc, but I'd bet that DJI's market advantage is due to three factors:
1. 70% global market share. That alone brings competitive advantages of all sorts.
2. Access to lower cost labor and closer access to world class large scale manufacturing. There is a reason companies like Apple do the majority of their manufacturing in China.
3. Simple performance. DJI is tough to beat for reliability and features. I'm not saying they are heads above anyone else, but nobody that I know beats them across the board.
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