The breakthrough strategy of China's small and med

The breakthrough strategy and strategy of Chinese small and medium-sized enterprises with the combination of "drainage" and "throttling"

in the previous article entitled "the sky has changed! Great changes and warnings of the living environment of Chinese small and medium-sized enterprises", Hong Jinwen, general manager of Shenzhen Huatian Weiye Technology Co., Ltd. (hereinafter referred to as "Huatian Weiye") said frankly: with the development of the times, the business environment of enterprises is changing

Hong Jinwen said that compared with the past, the living environment faced by small and medium-sized enterprises has changed dramatically in six aspects: product side, market side, management side, cost side, capital side and social environment

"all this is likely to be a big strategy of the country. Through the national policy of 'mass entrepreneurship and innovation', we will increase competition, and then increase the implementation of the five laws, eliminate the fittest, eliminate low-quality production capacity, and guide capital and entrepreneurship to develop into innovative and sustainable industries. The purpose is to force industrial upgrading and improve the GDP structure."

however, today's market situation is becoming more and more severe. How to survive and develop better in an increasingly standardized business environment? How to break through in an increasingly brutal market environment? It has become the theme of small and medium-sized enterprises

at present, the LED industry is highly competitive. Large enterprises rely on capital to gain large-scale advantages by expanding production, and obtain a better way to make profits through mergers and acquisitions. For most small and medium-sized enterprises, they cannot get the favor of the capital market, and thus cannot better endogenous extension. In such a severe situation, how can small and medium-sized enterprises break through

hongjinwen, general manager of Huatian Weiye, said that for small and medium-sized enterprises, there are mainly the following breakthrough modes:

1 Take the breakthrough mode of market segmentation and product segmentation

the core value of this breakthrough mode is reflected in the reliable and trusted quality and powerful function, which is characterized by high product pricing and large profit space. However, the time cost is high, and the starting capital is large, and the required talents are high-end

"it is a good choice to be a brand in subdivided fields, on the premise that the enterprise must have certain financial strength." Hong Jinwen said frankly, "it focuses on brand building, market operation, industrial design, quality control and supply chain integration, weakening the production and manufacturing and technology development capabilities. The breakout mode of segmented brands belongs to a mode of light assets and heavy circulation. Through market segmentation, product segmentation and brand operation, the gross profit margin is increased, so as to offset the production and manufacturing and technology development costs."

2. The core value of the breakthrough mode of single product extreme cost performance is reflected in high cost performance, low price, but low product profit. It is applicable to the product field with large quantity and high degree of standardization

"this breakthrough mode strengthens the ability of product industrial design and product technology development, maximizes the product, detonates the market by relying on ultra-high cost performance, quickly transmits product value with internet thinking, and quickly occupies the market." Hong Jinwen said, "however, the speed of its promotion and occupation is very important. We need to know how to provide prerequisites for the rapid settlement of large-scale aluminum based new material projects; the nearly 2million square meters of standardized plants with various specifications have been built to avoid business risks (low profits and low risks); in addition, the speed of product iteration and follow-up should be fast, otherwise the replicators will keep up, and the further development of enterprises will be blocked."

3. Multiple varieties and less materials detonate the market mode

multiple varieties and less materials detonate the market breakthrough mode. The core values of the mode are reflected in strong service ability, low transaction costs for customers, many market opportunities, high prices and high profits. It is suitable for product types with small volume and poor standardization

"this breakthrough mode strengthens the construction of product platform, with multiple products and complete types, so as to increase market opportunities." Hongjinwen stressed, "enterprises should not emphasize management due to multiple varieties and materials, but should reduce the management cost increase caused by multiple varieties by sharing materials. We should master the development trend of various adhesive utilization industries."

of course, it is not easy for small and medium-sized enterprises to break through the fierce living environment. While clarifying the way to break through according to the actual situation of enterprises, small and medium-sized enterprises also need to change several existing wrong ideas and establish a correct business philosophy

first of all, enterprises should be strong, not greedy, but strong first and then big. Insiders pointed out that in recent years, the treatment and recycling of waste plastics. Hongjinwen said that enterprises should give priority to becoming stronger rather than deliberately seeking to be bigger. Strong talent is the foundation of enterprise's destiny and development, and should become the natural product of strong development

secondly, enterprises should not be too greedy and pay attention to the nutrition of "food" and its systematic risks. In fact, enterprises and people alike, how much they eat is not the most important, but how much nutritious food they eat is the most critical. Only by turning every "food eaten" into muscle can we promote the benign development of enterprises

again, heavy assets are not the core competitiveness of enterprises. Hongjinwen mentioned that too many enterprises mistakenly believe that heavy assets are the core competitiveness, so everything is heavy asset layout, leading to the depletion of enterprise cash flow. Of course, if it is necessary for industrial development and other peers have no strength to invest, it is another matter

in addition, having customers does not mean having a market. It is worth noting that the market is the common needs of a group of customers, and customers are a member of the group. If enterprises want to seek great development, they need to use big data thinking and value rules to expand the customer base and larger market. They cannot be kidnapped by individual customers and fall into a passive situation

in addition, customers are not equal to God. They should be more like "boyfriends". In fact, what customers need is product value, so enterprises should continue to strengthen themselves. The essence of the transaction between enterprises and customers is value exchange. Therefore, enterprises cannot treat customers as if they are obedient. They should have independent "personality" and do valuable services

also, correctly view the value of suppliers. For an enterprise, the value of a supplier is far from only the cost performance of its products; Quality assurance ability, service ability and willingness, ability to cooperate with enterprise strategic product development, ability and willingness to be financed are all important. It is no exaggeration to say that suppliers are the solid backing for the development of enterprises

finally, the operation should be changeable and the management should be stable. Business mode should be good at changing, especially products and marketing. You can discuss the mode with us, and keep up with market changes at any time; However, management should be consistent, otherwise employees will be at a loss

it must be mentioned that establishing a correct business philosophy is far from enough for the benign operation of enterprises. Many small and medium-sized enterprises also need to focus on restructuring several core enterprises to maintain sustainable competitiveness. It includes enterprise strategic system, profit model, core competitiveness and customer selection mechanism

"in the current environment, enterprises need to reconstruct their market, brand, assets and capital strategy system." Hongjinwen said frankly, "the strategic consideration of the sound development of an enterprise needs to take into account the interests of customers, themselves, employees, suppliers and the country; at the same time, the strategic space should be able to support the enterprise to achieve its goals and vision. In addition, we should also consider whether the enterprise can control this strategy."

as for redefining the profit model and core competitiveness of enterprises, Hong Jinwen said: "we should constantly reflect on what money we want to make, why we can make it, what core competitiveness and core resources we need, and how to shape our core competitiveness. As the market changes greatly, enterprises should have the ability to constantly adjust and implement strategies."

in addition, a market-oriented customer selection mechanism should be established to provide value to customers. Enterprises need to establish a market-oriented marketing strategy that focuses on customer service, expand the customer base, and reduce the risk of customer concentration. At the same time, we should choose cooperative customers based on whether we can provide value to customers, so as to avoid overselling on the wrong customers, wasting enterprise costs and missing enterprise development opportunities

"in addition, enterprises need to constantly weaken the relationship business sales model and strengthen value marketing. No matter how good the personal relationship is, it is difficult to maintain the customer cooperation relationship, and providing value for customers is the fundamental." Hong Jinwen bluntly said, "today, the business function has changed significantly, from the traditional key problem solving type to the value transmission + service type. The function of business personnel is to quickly transmit product value and provide professional and effective services. In addition, the overall collaborative combat ability of enterprises has become the foundation of enterprise development, rather than just doing business well in the past."

whether it is to establish a correct enterprise concept or reconstruct the core of the enterprise, the fundamental purpose of the enterprise is to continuously realize "profitability" in terms of operation and management. Therefore, for enterprises, what they should continue to do is to continuously improve their profitability

in order to make continuous profits, enterprises not only need to maximize "drainage", but also think about how to continuously maximize "throttling". Hong Jinwen vividly compares the benign operation and management of enterprises to the process of how to make more and more "water" in the reservoir of enterprises

as a member of the army of small and medium-sized enterprises, Huatian Weiye continues to think about how to make customers more competitive in the market, how to make customers invest less and earn more based on the business philosophy of "product + service" and "quality + price". Therefore, in the severe living environment, Huatian Weiye has been making progress and developing rapidly

and Hong Jinwen himself has studied for many years in the LED drive power industry and has rich experience. In the next article entitled "localization trend of high-power power supply", he will focus on analyzing the high-power supply market, and compare foreign brands with domestic power supply, so as to highlight the key points and advantages of high-power power supply localization. Please look forward to it