Five Strategies for Future Competition of Enterprises

- May 08, 2019 -

< P > Henan Microwave Equipment Network News: Where can enterprises obtain sustainable competitive advantage in future competition? George Stalk, senior partner of Boston Consulting Group, in his new book Five Future Strategies You Need Right Now, points out five strategies for American enterprises to gain future competitive advantage, and Chinese enterprises can draw inspiration from them.

There are always some important business events quietly taking shape. In the initial stage, the impact is not particularly strong, and it does not seem to require special attention. However, this is the best time for enterprises to decide whether they should invest or whether they should invest more resources to prevent these incidents from happening immediately. If the enterprise does so, it will win the first chance and be ahead of its competitors. The most difficult thing to deal with in

is how to find out the emerging strategic problems in time, and find a large number of opportunities or hidden major threats, so that enterprises can pay enough attention from now on. Now let's look at the five strategies that George Stoke has discussed. They all start with weak signals. But now, the sources of these competitive advantages are not only very clear, but also unquestionable. Strategies

1: To build supply chain

American enterprises are becoming more and more professional in all related fields of supply chain building, such as outsourcing, subcontracting, cooperation and offshore outsourcing. Many companies purchase half or more of their goods from Asia. The result of such purchasing is that they reduce costs, increase profits and win the market.

However, the benefits from the supply chain are facing threats and risks, which are the infrastructure-related freight transport problems facing the West Coast of the United States and Western Europe. The speculative data show that by 2010, the handling capacity of all types of containers on the West Coast of the United States will reach its limit. In this way, the supply chain of an enterprise is prone to fluctuation. Even if the enterprise can make a very accurate guess about the future demand changes and maintain the appropriate inventory, the fluctuation of the supply chain will cause the rise of enterprise costs and loss of profits. The integrated supply chain is divided into three types: non-integrated supply chain, semi-integrated supply chain and integrated supply chain. In the non-integrated supply chain, each upstream link obtains relevant information according to the customer demand of the next link, and it is often difficult for people to detect and control the fluctuation of the supply chain. In the semi-integrated supply chain, every step needs to obtain demand information from the customers of the next two links. It is easier for people to see the fluctuation of the supply chain, but to deal with the existing problems. It still takes a lot of time; in the integrated supply chain, each link can fully understand the needs of end-users, enterprises can quickly respond to the fluctuations in the supply chain.

Therefore, for enterprises with domestic supply chain, integrated information flow and reaction speed, if they operate reasonably, they may exceed those enterprises with long delivery cycle and Asian purchasing base. The problem is not where the enterprise purchases, but how to make the supply chain more sophisticated.

For enterprises purchasing abroad, besides building an integrated supply chain, they can also adopt some effective strategies that appear to be costly but can reduce the overall cost: air transport for products with large profit margins and large demand changes; and end-to-end ocean transport principle, that is, to find those ships that can make the final shipment and the first unloading of enterprise goods. Timing arrangement; further improve the relationship with the transporter, if necessary, to invest additional costs to key links in order to obtain quality services. Strategies 2: Circumventing economies of scale

Enterprises are convinced of the magic of economies of scale - large scale means low cost. However, today's market is becoming more and more turbulent, and market speculation becomes extremely difficult. A study in the United States shows that more than 90% of the more than 30,000 new consumer goods listed each year end in failure. Meanwhile, the average life cycle of products has been significantly shortened: the average life cycle of new cars has dropped from nearly eight years 20 years ago to four years today; the life cycle of "popular" household computers has also dropped from four years to one year.

Many products have no opportunity to share investment and reduce costs through economies of scale, and there are huge risks in large-scale production. That is to say, throwing factory provides a low-risk market entry and exit mode for enterprises, provides sufficient convenience for flexible investment, and lays a foundation for achieving the rigid target of production.

From throw-in factory to throw-out strategy

throw-in factory is a production mode. The cost of building throw-in factory is low. The main purpose is to bring new products to market and meet uncertain market demand. If market demand is not as expected, enterprises can easily abandon the production and operation of factories; if market demand exists, enterprises can still do so. In order to throw away the existing factories and rebuild a new one.

Every element of an enterprise can be thrown away, including organizational structure, management team, distribution channels, and even strategy. A recent survey cited in the Harvard Business Review says, "Of the 259 senior managers in the world... More than 80% of people point out that the life cycle of the strategy is getting shorter. 72% of the people think that the first competitor will become a very different company in five years. Businesses are increasingly finding that their strategies are already facing the danger of transitions before they have a chance to prove them.

that is, throw-away factory strategy can enable enterprises to seize the development opportunities that may be rejected. Enterprises need to change their focus, from focusing on the types and combinations of products they produce, to how to serve emerging needs more acutely. Strategies 3: Dynamic pricing

Proper pricing strategy can improve the profitability of enterprises and build their competitive advantages. Hourly payment and bundled pricing are very effective methods in pricing strategy, which have been widely used in practice, but they can not bring strategic advantages to enterprises as they were just used. Some leading enterprises in some industries began to try to practice dynamic pricing.

Through dynamic pricing, enterprises can combine the price of their products and services with customers'willingness to use products and services at any time. To achieve this, the supplier's chamber collects real-time information about the customer's use of the product, and then determines the corresponding price to guide the customer to make corresponding consumer behavior, and ensure that the pricing can compensate for the cost of maintaining these behaviors. Progressive Casualty Insurance has been playing an innovator role since its inception. The remote information processing technology was originally developed by the OEM company of automobiles. It enables customers to stay "online" while driving through the network and wireless technology. Forward Insurance sees an opportunity: combining wireless technology, global positioning system, sensors and the Internet, Forward Insurance can accurately understand the location, driving speed and time of insurance customers'cars and other related information.

Forward Insurance begins to calculate premiums by referring to the driving frequency, time and place of the car. Those automobile insurance customers who sign up to determine premiums according to the frequency of use save 25% on average. The application of advanced insurance to current technology means that the company can set the corresponding premium amount for each specific insured according to the actual and real-time driving behavior of the insured. Obviously, this radical and individualized pricing mode is completely different from the current classification pricing mode which dominates the trend of automobile insurance industry.

Low-risk customers will choose low-premium forward insurance, while high-risk low-quality customers will be pushed to competitors. In order to cope with the increase of average cost (the increase of high-risk customers), competitors can only increase premium level evenly, which will lead to large-scale customer betrayal.

Dynamic pricing provides enterprises in different industries with the opportunity to lay a clear advantage. Dynamic pricing strategy can be adopted in Hotel accommodation, car rental, parking lot, meal reservation and air seat reservation industries. At the same time, dynamic pricing needs more customer information as the basis of pricing, and customer information itself also adds chips for enterprises to win competition. Strategies 4:

Embrace complex

enterprises tend to pursue simple products and fear complex product series and combinations, which will increase the pressure of production, governance, distribution and service support. For the complexity of products, the problem is not how to eliminate it, but how to find the best way to embrace complexity. Smart enterprises have developed many ways to build competitive advantage by embracing complexity.

P>Attracts high-end consumers. High-end consumers have a natural desire and desire for complexity. They regard shopping as a method of physical and mental adjustment. They like to constantly update their understanding and interpretation of the core elements of life, showing fanaticism and obsession. By investing more energy and resources in high-end consumers and providing them with more product choices, enterprises can increase their share of the group, and thus gain much more profits than those enterprises that exert their efforts on average in different consumer groups.

reduces anxiety caused by complexity. For goods of various types, colors and styles (such as footwear), if the shopping process and return procedures are complex and difficult to deal with, many people often buy goods with simpler and cheaper supply methods. In this regard, enterprises can reduce customers'anxiety when purchasing complex goods through free delivery (return) and free trial, and thus win competitive advantage.

defines the best choice. Certain products are extremely complex (e.g. computers), and many customers are still unable to find products that meet their needs until their patience and energy are exhausted. If the enterprise can sincerely introduce the best choice of goods for customers, it will be far better than those enterprises that let customers take measures to select products themselves. Making a detailed and readable product classification manual will help customers define the best product selection more quickly.

P>Change the search mode. Customers often have specific needs (such as industrial equipment such as engines) and may need numerous products or services to meet them. Enterprises can set up search engines on their own corporate websites to facilitate customers to find a product mix that meets their needs. At the same time, they need to set up several expert-level "navigators" to help willing buyers select products they need from products with a large number of important attributes. In this way, although everything is complex, customers are given the tools to control complex products. Strategic Five:

Infinite Broadband

Infinite Broadband brings revolutionary innovation to enterprise operation, which has a far-reaching impact on business outsourcing, customer relationship management, enterprise website, human resource management and marketing, and improves operation and production efficiency while saving enterprise operating costs.

In such a fast-growing world of unlimited broadband, no matter how much information enterprises want, no matter when and where.

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