Sunday, April 16, 2017

Strategic Model: Cross Combination of Opportunity and Innovation

This article is about the Chinese enterprises new growth strategy.

We all know that strategy is particularly important to the development of the company, but what kind of strategy to guide the company continue to move forward? Recently, Huaxia cornerstone business vice president, strategic culture, organization and human resources senior experts Xia Ming Ming, in the cornerstone of the Chinese New Year feast forum published a speech, introduced to us a business can help the rapid growth of the strategic innovation model, we To listen to what is going on.

Before introducing this model, I will give you two concepts, one is the opportunity, and one is innovation. Xia Ming Ming that the core issue of corporate strategy is to find where the growth point, the growth point is the "opportunity." There are two forms of opportunity, one is the incremental opportunity, that is, the market is in high growth, making cars make money, selling TV also make money, do what money But now why many companies say that money is not earned it? Because many industries have entered the stock market, what are the Red Sea, this is another opportunity, stock opportunities.

Finished the opportunity to give you talk about the opportunity to achieve the way: innovation. Xia Ming Ming said that innovation is also divided into two kinds, one is the strategic innovation, to invent new things, such as the invention of the Internet, lithium battery development, etc .; there is a tactical innovation, that is, no original Innovation.

Xia Ming Ming to introduce us to this model, is the different types of opportunities and innovation combination of two, and finally the formation of four strategies, then let everyone talk about each of these four strategies.

The first is the "eagle" strategy with incremental opportunities and strategic innovation. We know that even if there is no wind, the eagle can fly up. It will not blindly follow others, but have the ability to create their own trends. The ability of the enterprise is the same, it has its own core technology, or in social change, its business model can be a strategic innovation, to create a incremental market. This is a major technological innovation, such as the invention of electricity, the invention of the Internet, or Sony invented the tape, Walkman and so on; social changes, such as retail formats from mail to department stores, to supermarkets, electricity providers and so on.

The second is the "chilling pig" strategy with incremental opportunities and tactical innovation. If there is no hawk style of the ability, then the clever pig will have to find their own outlet. For business, you do not have to have core competencies, but you have to know "find the general trend", follow the wind to go.

So how to find the trend? Xia Ming Ming said that there are three roads. The first two is to say, to follow the "chilling eagle" strategy trend: the first road is to find a major technological breakthrough, such as new energy battery research and development breakthrough, the rapid development of the industry, even if you do not have the core technology, run. The second road is to follow the social trends, such as from the Internet age to the mobile Internet era. The third road is followed by the release of major policies, such as "along the way" policy and so on.

The third is a "reorganization strategy" with stock opportunities and strategic innovations. How to refactor? You can think along this product line, such as redefining the product, or selling the product to a different customer; another example is the re-definition of the industrial system, the integration of the whole industry value chain for strategic innovation. Take music as an example, before we may think that television is a decline of the industry, will certainly be replaced by a computer, but now you see music watch it, it redefines the TV, where it is an interactive TV Internet terminal.

Another example is the unique food, the original is to sell lo mei duck neck, the competitors are like Jingwu duck neck such a company. But in 2016, must taste in the chain of lo mei snack food market was reconstructed, specifically to invest in small and medium-sized light food companies, and then share with them the taste of food cold chain supply chain, which is to allow food in the storage, transport , Distribution and other links, can be in a specific low-temperature environment, to ensure that food does not degenerate the supply chain. Because the small chain of cold chain supply chain must be a loss, but not the cold chain, the quality of food will have an impact. So now, must taste food can be said to be a supply chain company.

The last one is an asymmetric strategy with stock opportunities and tactical innovation. This time is the stock market, and no major innovation, that business how to do it? Xia Ming Ming said that enterprises to identify the positioning, or the use of all the comparative advantages, to do things through, will be successful. Such as Chong Qing Runtong Group, mainly to do the automobile and motorcycle accessories and general machinery, is a special traditional enterprises, but now also do a few hundred million. Before they compete with Japanese companies, what are the advantages? Is the Japanese companies are more arrogant, the customer said to change what they do not change, that their things are the best. And Run will respond quickly to the customer-centric strategy to achieve the ultimate. Xia Ming Ming said that when you do 99.99% of the enterprises can not do things, even if there is no incremental opportunities, there is no strategic innovation, you can also form their own competitiveness.

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