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2022-09-19
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Operation management: enterprises find their own "Harry Potter"

vertical extension, horizontal leap and investment in the future are the three ways for enterprises to break through the growth limit

"why do enterprises encounter the limit in the process of development? Can the limit be avoided? If not, how can they break through the limit?" On September 3, in the course "limits and breakthroughs of enterprise growth", Professor ruimingjie, Dean of the Department of industrial economics of the school of management of Fudan University, put forward a series of questions to the students of Fudan emba2004 media class

soon, several red dots flashed on the projection screen. Professor ruimingjie shook the laser pen in his hand and pointed out the answers one by one: "enterprises have their life cycle, and the limit is inevitable; the fundamental reason for the limit lies in the limited market capacity, and the key to breaking the limit lies in industrial transformation."

professor ruimingjie pointed out that the life cycle theory and the theory of limited market capacity have been proved in the market and widely accepted. Enterprise managers need to consider how to lead enterprises to break through one limit after another through industrial transformation. He believes that there are three ways to realize industrial transformation: one is to extend the industry, the other is to enter other industries, and the third is to create a new industry

find "Harry Potter"

the so-called industrial extension refers to the extension of the industrial chain, which reflects a kind of vertical thinking. It includes two directions: the extension to the upstream industry and the extension to the downstream industry that ensures the integrity of the structure. At present, this is familiar to many enterprises and often put into practice

however, when carrying out industrial extension, many entrepreneurs often ignore two prerequisites: first, they must have a complete and thorough understanding of their own industrial chain and straighten out their own chain; In other words, before connecting the chain up or down, we must first ensure the health and smoothness of this section of the chain. Professor ruimingjie said, "a person who is running a race must clearly know his position and the route he wants to run."

the second premise is to choose a part with relatively concentrated advantageous resources in the business link, and make it different and the best

taking the publishing industry as an example, topics selection, editing, finalization, printing and sales constitute a complete business chain. "As a publishing house, you should know these links well and clearly know your advantages. If you have a good sales network, even if the content and printing of the book are a little worse, you can sell well; if you can invest a lot of advantageous resources in selecting topics and plan a good book or set of books, then the work of publicity and promotion will be much easier."

next, Professor ruimingjie analyzed and said, "of course, the best-selling of the Harry Potter series has something to do with printing, packaging, distribution channels, etc., but the most important thing is that its content is enough to attract thousands of teenagers. If you can often find such fascinating themes as' Harry Potter 'when planning topics, the remaining problems are not difficult to solve." Professor ruimingjie stressed that "Harry Potter" is actually the core competitiveness of enterprises and the core link of enterprise business value-added

smile curve and demand elasticity

"if you can't find 'Harry Potter' after looking around, it means that you are not suitable for survival and development in this industry. At this time, you should consider horizontal leapfrogging and enter another industry." Professor ruimingjie made suggestions to those enterprise executives who lingered on the industrial chain

as the saying goes, "men are afraid of entering the wrong industry, and women are afraid of marrying the wrong man." Three hundred and sixty lines, which line should I enter? Professor ruimingjie believes that "we should enter industries with long-term profitability."

he cited the "smile curve" of Shi Zhenrong, the "Godfather" of it in Taiwan, China to illustrate this problem: "from the perspective of brand, manufacturing and sales, the profit margin of manufacturing industry is the lowest, so the profit of manufacturing industry may be the lowest; but this does not mean that we should not consider entering the manufacturing industry at all, because we should also consider the duration of profitability when choosing industries."

at this time, Professor ruimingjie introduced the basic economic concept of "demand elasticity". He believes that only by combining the "smile curve" and "demand elasticity" can we get a rational choice: for products with high demand elasticity, the sales volume will be greatly affected by the slight fluctuation of price. Even if such products have "huge profits", they are unstable and can only be short-term behavior; Products with low demand elasticity are usually necessities closely related to clothing, food, housing and transportation. Their sales volume is relatively stable, and the profits they can provide are relatively stable and long-term

"when Ning Gaoning started to preside over China Resources, China Resources was still a novice in the beer field, but why did Ning Gaoning lead China Resources to enter the beer industry in a large scale, blooming all over the country and carrying out large-scale mergers and acquisitions? The reason is that he knew that beer, a product, is not coffee or red wine. For many Chinese consumers, it is a necessity of life and has the possibility of sustainable profits."

the most valuable choice is to invest in the future

a student asked, "many of us have practiced industrial extension and industrial change, and now we have a clearer understanding, but if these two roads fail, what should we do?"

professor ruimingjie said, "good question. When many enterprises come to this step, they will think they are in a desperate situation, but in fact, they are not." With that, he quickly drew a "time market chart" on the whiteboard. "According to this chart, we can draw an intuitive conclusion - the future market is larger than the current market."

Akio Morita, founder of Sony Corporation, has a famous saying: "We never serve the market, we create the market. Our plan is to lead the public with new products, rather than passively ask them what products they need. We will not do a lot of market research, but will continue to actively change our business model, revise our ideas about each product and its performance and use, and try to create the market by guiding consumers and communicating with consumers."

after quoting this famous saying, Professor ruimingjie analyzed and said: "consumers do not know what they need in the future. This is Akio Morita's view. I also deeply believe that - no one knows what they need in the future, so naturally they do not know what is the most popular in the future. This uncertainty from the future, or risk-taking, is the most favored feature of capital."

There are three common classification methods:

"the essence of capital is adventure!" He raised his tone all the time

"30 years ago, would we know that MP3 will become a common tool for people to enjoy music?

I don't know. But the emergence of MP3 has indeed changed the popular way of music and promoted the development of the music industry." Professor ruimingjie pointed to the projection screen again: "since the market demand in the future is far greater than now, and now we encounter the growth limit that cannot be broken through by industrial extension or change, why not try to invest in the future? Breaking the inherent thinking and creating a new industry is the most difficult choice, but it is often the most valuable choice."

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