[China Glass Network] Traditional business rules are being challenged. The era of sales above all else has passed, and profits are the king.
Those small, but highly profitable Internet upstarts are challenging companies in the traditional industry that are “bloatedâ€, cumbersome, and costly. A recent hot-selling YESPPG is a typical example. Although the company that sells men's shirts on the Internet has only 500 people, it can handle the delivery of 10,000 pieces of clothing per day. Youngor, one of the domestic clothing industry leaders, is now It is 13,000 pieces. Moreover, YSEPPG has been established since then, but in just two years.
Some companies in the traditional industry are also undergoing changes. Yang Mianmian, president of Haier Group, claimed that Haier’s goal is to “make the company small and expand its customersâ€, indicating Haier’s determination to transform into a “light companyâ€.
(1) Light company rule 1: seeking outsourcing
In the traditional view, outsourcing is an unacceptable practice for companies. In the network era, outsourcing has become an inevitable trend of enterprise development. The company has separated the design, production, and sales links, and is only responsible for brand management with high value content, thus ensuring that enterprises can concentrate their energies on more important links.
A good example is Nike, the world's more well-known sports brand does not have a factory of its own. From product production, packaging, transportation to sales, it relies entirely on outsourcing. Software giants such as Microsoft and IBM are now focusing only on the development of core modules. More development links have been outsourced to many small and medium-sized software companies.
(2) Light company rule 2: Seeking partners.
In the 21st century, it is difficult for companies that are “big and complete†to gain an advantage. A “small but fine†company is likely to form core competitiveness. In an era of continuous fragmentation of the industry chain, companies that can focus on their core capabilities and form partnerships with upstream and downstream companies in the industry chain will gain much more energy than their own operations.
Wenzhou is one of the more developed regions in China's private economy. Here, the model of “division of labor†and “cooperation†is typical. Since the development of the "block economy" of "one village, one product" and "one township and one industry", Wenzhou has already had five industrial clusters of considerable scale: the low-voltage electrical industry cluster occupying 33% of the low-voltage electrical appliances in the country, occupying 20% ​​of the domestic market. The shoe leather industry cluster in the leather shoes market, occupying 10% of the clothing industry cluster in the domestic suit market, occupying 95% of the domestic market of lighters, 70% of the lighter industry cluster in the international market, and the optical industry cluster occupying 80% of the domestic glasses market.
This kind of industrial cluster with division of labor and cooperation makes Wenzhou enterprises more productive and cost-leading than enterprises in other regions; with faster innovation speed and improved technical and quality levels; A more detailed division of labor and social collaboration make Wenzhou's industry have a competitive advantage that is difficult to imitate.
(3) Light company rule 3: Make full use of the Internet.
The Internet is a great invention in the 20th century. Email, instant messaging and other tools have improved people's communication efficiency. The emergence of search engines provides a wide range of information sources and filters for people to find information. The emergence of websites such as BBS, portals, and shopping has created new channels for people to read, communicate, and shop for information.
The "light company" in the Internet era knows how to make full use of these characteristics of the Internet, so that its products can be recognized by customers with lower marketing costs, and they can do business all over the world without leaving the house. The employees in “Light Company†may be distributed throughout the country and even around the world. The use of the Internet to realize the office mode of Soho reduces the operating cost of the company to a lower level. If you have any doubts about this, look at the excellent sellers on Taobao and ebay, reduce the cost of traditional sales channels, and save a lot of company operating expenses. They are much better than some traditional sellers.
In the face of fiercely competitive markets, what companies need to do is not to make themselves stronger and bigger. On the contrary, learning to let go of their burdens and being lightly loaded may be a better way to win.
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