Chapter 24 13. Winning lies in strategy: pattern, layout, and strategy

To be a business, you must have a strategic vision and not act blindly.Many times, when the thinking is clear, you will have a sense of direction when you act again, and you will be able to grasp the key points and handle them well.This is the "pattern", "layout" and "step" that Guo Taiming often talks about. Guo Taiming described Hon Hai’s three-step strategy to today: The first is the pattern.At that time, Hon Hai set foot in the connector, and then rose in the PV field. In 1999, Foxconn was established, and the company officially entered the contract manufacturing of mobile phones.This leap has reversed Hon Hai's industrial "pattern".

Second is the layout.After entering the mobile phone industry, Hon Hai increased resource integration. On October 16, 2003, Guo Taiming acquired a factory in Finland in one fell swoop, a company specializing in OEM for Nokia.Then, Hon Hai entered Mexico and acquired a local factory in Canada, thus realizing a step-by-step "layout" in cross-border mergers and acquisitions. The last step is the game. In November 2003, Guo Taiming acquired Guodian, a leading enterprise in the Netcom foundry industry.Since then, Hon Hai has been proud of itself in the mobile phone market and achieved its goal of winning.

Specifically, during the long-term development of Hon Hai, Terry Gou seized every development opportunity and built the company's manufacturing capabilities to gain a firm foothold in global competition. In the early stage of development, when many Taiwanese companies drew funds and invested in land and real estate speculation, Guo Taiming invested in black and white TV connectors. As a result, he made the first pot of gold from the booming TV industry in the 1980s. In the 1990s, Guo Taiming seized the development trend of the PC industry, developed mold manufacturing capabilities, and found his own blue ocean from the computer case. In 1983, Hon Hai developed computer connectors using new equipment imported from Japan.Since then, Hon Hai has officially entered the PC field, maintaining a growth trend of 20% per year.

Guo Taiming made money, but he didn't put it in his pocket, but invested it all in buying machines.Hon Hai did not stop moving forward, and continued to increase investment, allowing everyone to see a company's long-term commitment and determination and confidence in pursuing excellence. In 1984, in order to establish a metal electroplating department, Hon Hai imported automatic connecting wire selective gold plating equipment and electroplating testing equipment directly from the United States, spending nearly 10 million Taiwan dollars.This investment was about one-tenth of Hon Hai's turnover at that time.

After a series of technological investments, Hon Hai began to grow rapidly, and its performance rose rapidly.The strong strength in technology has not only brought rich returns to Hon Hai, but also laid the capital for its future global competition. In the 21st century, Guo Taiming set foot in the mobile phone industry again, which once again allowed Hon Hai to get a share of the global industrial competition and continued to write the undefeated myth. Every step of Hon Hai's growth is to invest in itself. Once it sees the direction, it will increase technology research and development, develop human resources, and closely follow the pace of the global market.Guo Taiming said: "Only by investing in yourself for a long time can you survive under the natural law of global competition."

At the same time, Guo Taiming often said: "Hon Hai is not only running a business, but also running a school. Here, everyone can get the opportunity to grow and exercise, because Hon Hai must first create excellent talents. There are excellent products.” Emphasizing education and training has always been Hon Hai's tradition, but the more important reason to attract people to work here is: Hon Hai has a good platform.Usually, after working here for a period of time, you will have a considerable understanding of the entire industry and your professional level will be greatly improved.

"To grow rapidly, a company must have the dual capabilities of 'manufacturing products' and 'manufacturing talents'." Guo Taiming's view is that in the process of the company's rapid growth, if the quality of talents cannot keep up, the quality of products will be greatly reduced. It is undoubtedly a disaster for enterprises. Today, the business model has become the key to the success or failure of an enterprise's competition.Management master Peter Drucker said: "The competition among enterprises today is not the competition between products, but the competition between business models." In the tide of rapid expansion, through mergers and acquisitions, excellent Copying the original business model to new enterprises has become the only way for many enterprises to become bigger and stronger.

A business model does not matter whether it is good or bad, only suitable or not.Of course, in addition to groping for a business model that is suitable for its own development and profitability in business practice, operators should also look outward and occupy a place in the competition by copying successful business models.To take this step, we must start from the following aspects: (1) The business model must have vitality An excellent business model must be honed in the business competition and has experienced the severe test of the market. It has both standardized operating procedures and flexible space.Only a good model can create countless "replica companies" that are as competitive as the "mother company".

(2) Excellent professional managers are essential Whether a team can win or not depends on the level of the people leading the team.Excellent professional managers are the commanders of business model promotion and play an irreplaceable role.When replicating a business model in one place, professional managers will often take over the transformed company, and direct the entire process of the new company’s implementation of the business model until the moment of final success. (3) Have a professional management team Realizing the perfect replication of the business model requires a professional management team.The business model replication process involves multiple levels of knowledge management, which not only consumes time and energy, but also requires mature operational management capabilities and a good grasp of the overall situation.A professional management team is the organizational guarantee for enterprises to promote their business models.

(4) Adhere to "localization" in the process of copying To transplant the business model of an enterprise to another place, it must be rooted and truly localized.This requires the company's airborne troops to grasp the local culture well and make a perfect connection during execution.A good business model, without the guarantee of excellent execution, will encounter "Waterloo" and eventually withdraw from the local market.