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The diversification of Chinese enterprises dream
News source:    Reads:2276    AddTime:2009-7-17 16:16:55    Collects this page

The diversification of Chinese enterprises tend to be prompted by many factors, the price war is one of the very important point. Price war has greatly reduced the profits of many industries, in order to maintain profitability, companies have started to open up new industries. Moreover, many industries in the core technologies are imported from abroad, Chinese companies do most of their needs is only just assembled the working procedure, the production is not difficult, the new product is easy to market. From the company's management point of view, to open up new areas to increase the company's short-term profits. However, the diversity in the end is not a successful strategy? In the Chinese companies attempt to diversify the process, GE is a "good" example. However, GE is just a special case, not all companies are available through diversification into GE, then "smash hit," Enron not also fell on the last of "diversification" of the foot do? And GE is a diversified development through certain conditions. Chinese companies will be even every day, "one of the best," mention, it can not do. Jack. Welch's visit to China at the time to remind the Chinese enterprises to say "there are many business models, there are many different rules of the game and ways we can not say which one is best, but today I can tell everyone but I know that a successful model. " But sadly, many businesses have already diversified into the thinking errors in copying the name of the banner of GE models farther and farther. Why do these diverse companies can now survive. The one hand, intense competition has not yet spread to all areas of these enterprises, these enterprises also can "robbing Peter to pay the Western Wall"; the other hand, local protection measures, or through policy to give preferential treatment between the business, or support loans, avoid businesses closed in staff being laid off, social unrest. In fact, the technical advantages of the formation of the core competitiveness of Chinese enterprises Liao, if Morningstar, its competitiveness is always up to stay in the manufacturing and marketing, in the industrial chain, the end of the contest with a pack of wolves to get only low value-added profits, when the These profits with those who rushed into the follow-up and disappeared, seeking to enter other industries that is diversified to become an indispensable part of their move from both budding industry and how far away from existing businesses. In the Chinese market, industry, creating opportunities for change too, in addition to those high regulated industries, most of the industry has low barriers to entry, the diversification of Chinese enterprises also exceptionally easy to come - a time when color TV enterprises Zuobuxiaqu go do cell phones, cell phone Zuobuxiaqu just do cars have been countless such cases. Their conclusion is not hard to imagine - though also no lack of gains, but the lack of core technology, the reality is still difficult for the majority of businesses in diverse industries around the long-term foothold. And the successful diversification can be very small. The world's first consulting firm McKinsey have such statistical data, through the analysis of samples from 412 companies, Michael Green tin will be divided into specialized operation (67% of operating revenue comes from a public institution), a moderate multi - operations (at least 67% of the operating retractable to poker in two specialized units), diversification (less than 67% of operating revenue comes from the two institutions). The result: professional management methods, TRS (shareholder return) 22%, moderate pluralism, TRS (18%), a diversified mode of operation, TRS16%. From the rate of return, the professional business approach is far superior to a wide range of operations. Diversity or uniformity? Chinese companies how to resolve this dilemma? Solve the problem first of all need to re-clarify this contradiction. Cover short-term and long-term contradiction is only in the financial and market the veil over this contradiction. If the company is a finance-oriented, and the company will need to look beyond financial statements for fall on balance, in the core business at a low ebb period in order to maintain income would be to open up new business areas. If the company is a market-oriented, the company's marketing strategy would be to look beyond the fall, such as in the original business to increase brand awareness, develop sales channels, enhance product design and innovation. If Chinese companies can be truly customer-centric, they will focus on core business, to focus on improving customer satisfaction, the customer will be to continuously increase the purchasing volume and a good reputation in return. 
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