[ MBA China Net News] Mr. Wang Xing, CEO of the US Mission Group, talked about the issue of corporate diversification and specialization in an interview with Caijing, and once again set off the debate between the two.
Mr. Wang Xing defended his diversified route. He believes that in the first half of the technological revolution, because the risk is very large, a small team is needed to explore. But in the second half, the dividends became smaller and integration became the way to release the bonus. At this time, a multi-business company will have an advantage over a single business company.
Mr. Liang Jianzhang, Chairman of Ctrip, said that although there is no absolute right or wrong in diversification and specialization, China does not need more diversified companies. There are several reasons for this: 1. From the perspective of large historical trends, the degree of specialization of enterprises is getting higher and higher; 2. Specialization is conducive to innovation; 3. Globalization brings more to more creative professional companies. opportunity.
Specialized companies often have distinctive characteristics. Mentioning Volkswagen, Mercedes-Benz and BMW, everyone knows that this is a car manufacturer; BASF is a chemical company; Bayer is a bio- and pharmaceutical company; Krupp is a steel manufacturer, and even Siemens with a wide variety of products has a distinctive identification label. :electrical equipment.
This is true for large companies, and small and medium-sized enterprises are no exception. Among the 3.7 million companies in Germany, there are a number of small and medium-sized enterprises with core competitiveness. Their products are of excellent quality, have the same pricing power, and have the highest market share in a certain field in the world. They are the king of this segment. The key is to keep customers, dozens or even hundreds of years of stable operation, is a very healthy and high-quality enterprise.
Most of these successful small and medium-sized enterprises take a professional route, generally only produce one or several products, and then the product quality is the ultimate.
For example, Kryolan in Berlin specializes in providing professional cosmetics for the theatre industry, with a market share of 95% in Germany. Hauni is the world leader in cigarette making machinery, the only company that offers a complete cigarette production system in the high-speed cigarette machinery market. With a 90% share; Jerez specializes in the production of stage backgrounds, is the only manufacturer of large-scale stage shade cloth in the world, with a market share of 100%; Würth even produces only screws, nuts, etc. The products, which have been applied to satellites up to space, cover almost all industry sectors, with annual sales of more than 7 billion euros.
They are the first in the industry and “highly professional†is the core. In order to provide customers with quality products, most of them choose a specialized route, focusing on the market segmentation and deep development in all aspects of their value chain. They do not seek to occupy the entire industry or the entire industry chain, but only produce a single professional product, create unique technical processes, and make products to be perfect.
On the other hand, some short-lived enterprises in China have achieved considerable profits despite their short-term success. However, they have not suppressed the diversified emotional impulses in the face of victory, blindly acquiring companies and extending their brands, and hope to obtain "through continuous integration." The release of the bonus." In fact, the reason why such entrepreneurs are willing to try this way is somewhat the thinking and plot of "the East is not bright in the West." From a deeper perspective, this approach reflects the unclear or unscientific strategic of the operator.
German operators know that if companies want to maintain the advantages of their products, they cannot do without the spirit of constant innovation and dedication. Innovation requires huge financial support, and German companies are unambiguous. German companies' R&D expenses generally account for 15% of total cost, and some even as high as 30%. If the company implements a diversification strategy, the research and development costs can only be reduced, and it is difficult to form a targeted and concentrated investment in the research and development of a certain product.
The innovation of the enterprise is of course inseparable from the creativity of the brain, but behind the creativity is the solid technology and process. The soil of the process technology and process cannot be separated from the craftsmanship spirit, but the carrier of the craftsman spirit is one by one. A living mechanic. If the enterprise development strategy is too diverse, it will not be able to reflect the advantages of the specialization of mechanics.
Due to the specialization strategy adopted by German companies, a certain type of products are too narrow in the domestic market. Therefore, they have to carry out globalization and strive to expand outwards and push products to the international market, thus creating a world-wide market. The "invisible champion" enterprise.
For example, Wanzel, founded in 1928, is the world's largest manufacturer of shopping and luggage trolleys, and is exported to more than 130 countries around the world. Otto Bock's high-tech prosthesis has captured half of the global market and sold its products to 50 countries. 3B Scientific, based in Hamburg, is a supplier of anatomical models, simulation and medical education products, with 90% of its annual turnover coming from the international market; Hoffmann Group was founded in 1993 as a precision measuring instrument for industrial use. Suppliers, technology, quality, market share ranked first in the world, with an annual turnover of 1.1 billion euros.
Conversely, as globalization deepens, it provides more space and development opportunities for professional companies. One of the characteristics of globalization is that social division of labor is more clear and collaborative production becomes inevitable. Even a very large international company cannot produce all the parts, because large companies do not have the advantage of making small parts, but SMEs are better. Therefore, the more globalized, the SMEs will benefit from the division of labor and collaboration. Through the matching and professionalization of small and medium-sized enterprises, SMEs have gained a stable market share and established their own accurate position in the market segment.
In fact, German companies do not completely reject diversity, but their diversity is bordered. Diversification must first be based on a certain fist product, so that it can stand firm in the market and win the market, and then begin to consider diversity.
Carl Becker is a diversified German company that produces more than 300 products that are tailored to different companies, but these products all have a common name: lubricants. Some companies will take a solid path even if they have no more room to live and have to choose new products and new projects - try to stay in a field that you are familiar with or relatively familiar with, and you will not just finish the catering review. Take a taxi. In essence, the "diversification" of German companies is not a diversification in the true sense, but also an extension of specialization, that is, "do not continue the industry, and do not leave the Bank."
Regarding the "diversification" or "professionalization" of enterprises, from another point of view, it is actually a question of "bigger" or "stronger." “Big†can be a motivational slogan, but it cannot be taken seriously. If “bigger†really becomes a development strategy, then the enterprise may be fierce. The essence of strategy lies in choice. Entrepreneurs must make painful and decisive choices in the face of temptation.
Successful corporate strategies in real life have their own advantages, but they all find a development path that is different and suitable for them. Some entrepreneurs are imagining that companies will “make up quickly†and then strengthen themselves. This kind of thinking tends to be counterproductive.
China's big but not strong, puffy and weak companies are too numerous to enumerate. Therefore, only being strong is fundamental, and being big and long is just a natural result of being strong.
Hermann Simon, author of The Invisible Champion, made a good summary of this: “A large number of small but strong world-class companies have achieved the most in their particular field. Good scale, while occupying a dominant position." In short, the success of German companies is: to be stronger, stronger, stronger, and to be a professional king.
Copyright Notice:
This article is reproduced from Yang Peichang to see Germany. If the original author does not want to use the relevant materials on this website, please inform the website in time, we will deal with it in the shortest time, contact 010-53572272.
100D 4 Way Stretch Print Fabric
SHAOXING YINGSIPE TEXTILE CO.,LTD , https://www.chinayingsipei.com