Chapter 22 1. Internationalization is not simply product output

In the most competitive global home appliance industry, especially in the air-conditioning industry, there are not only powerful international giants from the United States, Japan, and South Korea, but also aggressive Chinese companies. In terms of strength, Gree is even more disparity compared with international giants.Why was Gree Electric able to come from behind and surpass its foreign and domestic competitors in just over ten years, becoming the world champion in the field of household air conditioners?Gree Electric Appliances was awarded the title of "China's World Famous Brand Product" jointly awarded by the General Administration of Quality Supervision, Inspection and Quarantine and the China Famous Brand Strategy Promotion Committee, and was awarded the "Iconic Brand of China's Air Conditioning Industry". What kind of magical power has achieved Gree's leading position? myth?To create a world-class brand, you must have your own core technology. Dong Mingzhu's answer is actually only two words, that is the brand, "We negotiate with foreigners, and they will do whatever they want. I say no, and now I have to follow my Why? Because a lot of it is my own core technology. What I want to produce is my brand. Don’t we Chinese appreciate BMW? We want Germans to appreciate Gree.” The Chinese can’t do without Brand, this is not a matter of debate, but a necessary issue. Since World War II, Toyota and Sony have pioneered the internationalization of Japanese companies; Korean companies have also started internationalization very early, so Samsung, Hyundai and other A large number of world-class famous brands.Chinese enterprises should not only implement the "Red Ocean Strategy" at home, but also implement the "Blue Ocean Strategy" abroad.For Gree, it is necessary to find a stable profit growth point.Experts in the industry pointed out that Gree has successfully internationalized. With the belief of "always one step ahead with core technology" and the momentum of "promoting national industry and creating Chinese famous brand", Gree has won the general recognition and appreciation of consumers all over the world.

From 1998 to 2001, Gree air conditioners successively entered shopping malls and supermarkets in Hong Kong, the Philippines, Italy, Spain, Germany, the United States, Brazil and other places, and established a complete sales network in more than 100 countries around the world. , reliable quality, won the pursuit of many foreign consumers.Regarding Gree Electric's internationalization strategy of "creating a brand while going global", Dong Mingzhu believes that the road to internationalization is really difficult, and it is not as simple as some people imagine, going abroad through a joint venture with foreigners.There are various disputes in the industry about the mode of Chinese enterprises going out. Each enterprise has its own plan, such as Haier's strategy of "difficult first and then easy" and "transnational mergers and acquisitions" strategy of Gree Electric Appliances. First there is the market, then there is the factory" international management idea.Dong Mingzhu pointed out that the success of Chinese enterprises' "going global" depends on whether they can create more wealth for the country and whether they can continue to win the recognition of consumers.After completing Gree's international layout, the internationalization of the brand is on the way. But apart from producing high-end products, Dong Mingzhu undoubtedly thinks more far-reaching. Chinese companies building factories abroad are actually spreading a kind of management culture. , Through exchanges, we can bring our excellent culture to other countries.This is Gree Electric's own idea: going global is not simply exporting products, nor is it simply building a factory outside, but to let Chinese culture go global.The fundamental purpose of business is to make a profit, of course there is nothing wrong with that.Different stages of enterprise development need to use different means to create new value in different fields, and the mission of the enterprise is to formulate a rule for the above-mentioned behaviors of the enterprise, and it cannot do whatever it wants in order to make money.In the past, as long as people manufactured a product, they would not have to worry about selling it. Now due to the intensification of competition, many companies have gradually understood that they must also sell their culture while selling their products. Only by successfully selling these excellent spiritual products can the company turn to create material wealth.What does the business do?According to Peter Drucker, this question must be answered within the enterprise as early as possible, because it is crucial to the development of the enterprise's goals, strategies, organization and behavior.Although, the final answer is often not obtained in a round of applause, and the decision is always accompanied by fierce debates and quarrels, but it will appear sooner or later, just like the birth of a baby, it will always bring the mother's birth pains.Drucker believes that the sustainable operation of an enterprise does not rely on a person's intuitive feeling, but is based on a set of simple, clear and profound business theories.To this end, it is necessary for the enterprise to go beyond the life of a person or a generation, and to invest resources in a longer-term future. The enterprise must take due responsibility for the present and the future, which is the mission of the enterprise.In the category of corporate culture, it is one thing to determine the state of the leading concept of the company, but another thing to distinguish the characteristics of different concepts in corporate behavior.The corporate philosophy is a balanced system, which expresses the characteristics of diversity while maintaining the corporate strategic mission.By observing the mission descriptions of some companies, it is not difficult to find that ideology is not as empty as we usually think, but has rich spiritual connotations. Because of this discovery, the research on corporate missions has become interesting.Some concepts are aimed at demonstrating the technological level of the enterprise, such as Lenovo's concept of "what will happen to human beings if the world loses Lenovo" has a kind of boldness, smug, soul-stirring, which can greatly enhance the self-confidence of the enterprise , At the same time, it also makes the employees of the company feel proud and proud.Gree Electric Appliances wants to build a purely self-owned brand and establish its own advantages in technology and management. When going out, it hopes to cooperate with local capital and manufacturers with technology and management experience instead of spending money.The completion of the global layout does not mean that Gree Electric Appliances can become a world-class enterprise. To build first-class competitiveness, Gree needs to optimize and improve at all levels of operation and management. It is not a day to become an international brand. achievement.

In the early 1990s, Zhu Jianghong once went to inspect the European market. When passing through the customs at Paris Airport, France, the staff first treated him with respect and then condescension. At first, the staff thought he was Japanese. When they saw the passport and found him When he was Chinese, not only did he lose his smile, but he even made things difficult for him. It was the unusual trip to Europe that inspired Zhu Jianghong’s courage and determination to vigorously promote the internationalization of the company and make Gree a world-class product.Relevant experts pointed out that in order to create a global product brand, in addition to forming its own characteristics in terms of technology and management, it is also necessary to overcome differences in management models and cultures.Looking at the brand marketing of domestic products, each has its own characteristics.Mengniu is the best domestic enterprise in event marketing. Its grasp of communication timing and storytelling skills can be said to have reached the extreme, and no one in the domestic enterprise can match it.Even when explaining their corporate mission, they did not forget to tell a touching story. They turned a dream of Premier Wen Jiabao into the corporate mission and philosophy, "a glass of milk every day can make a billion people healthy", ordering the world, this trick is indeed high.Some local enterprises regard "national rejuvenation" as their fundamental mission, which expresses a kind of good prayer, hoping to help realize the overall rejuvenation of the nation through the revitalization of national industries, which reflects the good morality of national entrepreneurs who take national rejuvenation as their own responsibility Fashion. Sichuan Changhong Company, which "takes the revitalization of national industry as its own duty", is also very representative among domestic enterprises, with a famous teacher and a resounding banner.However, this also puts great mental pressure on the enterprises. How can the great cause of national rejuvenation be child's play? It seems that these enterprises must redouble their efforts.There are also some concepts that express human-oriented management ideas, such as Nissan "creating the future of people and cars"; Sony "changing life conditions, introducing new entertainment methods, providing technology and digital concepts of the new era, and working hand in hand with domestic industries through Commitment to high-quality service and closer relationship with customers”; Panasonic “Our mission is to manufacture inexpensive and high-quality products as abundant as tap water. We use this to get rid of poverty, bring happiness to people’s lives, and make the world a better place "; Procter & Gamble "provides famous and high-quality products that really change the daily life of customers."There is a concept to express the service purpose of the enterprise, such as Microsoft "let every table and every family have a computer, and use Microsoft software"; Gree "creates value for customers, creates opportunities for employees, and creates benefits for society. The corporate mission can be conveyed through the corporate philosophy and business purpose, but some companies do not directly express the corporate mission, but are implicit in the corporate behavior system.The corporate mission is not only a sublimation of theory, but also a guideline for normative behavior.Expressing the mission of the enterprise through practical actions is probably also a verification of the combination of business theory, knowledge and action.In the course of 30 years of reform and opening up, China has made a series of considerable progress, especially in the building of enterprises' international competitiveness. A group of outstanding enterprises have made great contributions to the development of China's economy through their own physical actions. .It is true that the mission of some enterprises stays in words and becomes a golden signboard for enterprises to flaunt themselves, but more enterprises have made a wonderful annotation for their mission through their own practical actions.

It is these Chinese enterprises with a sense of historical responsibility that have changed the lives of the Chinese people and created a new era of business.Due to the lack of a sense of mission, some entrepreneurs and enterprises have become speculators and gamblers in the market, acting recklessly in the tide of the market economy, and they are destined to be abandoned by history.The eyes of history are discerning. Talented people come out from generation to generation, each leading the way for three to five years. Many enterprises and entrepreneurs that were once extremely popular have not been able to continue their style and have completely withdrawn from the stage of history.In the process of development, what kind of mission should an enterprise take on? Different enterprises have given different answers. In fact, what kind of mission an enterprise is willing to take on is not the key to the question. Others don't care much about this matter.People are more concerned about how an enterprise views itself and what it should do, which not only determines the structure of the enterprise, but also determines its future development path.Just like being a human being, one must be a noble person, a pure person, a person who is free from vulgar interests, and a person who is beneficial to the country and the people. This is the essence of life.How to build an international brand, Gree executives considered four issues, namely, first, it is necessary to establish an international management system, in accordance with the requirements of internationalization, improve the internal organization system and management system of the enterprise, and create a group of international operations Capacity, through internal training and external introduction mechanism, to accumulate international business experience, so as to enhance the company's global industrial management capabilities.Secondly, integrate and build a global R&D system. By integrating the R&D and design centers of acquired products and the original R&D system of Gree Electric Appliances, global R&D resources can be shared and the synergistic benefits of global R&D can be improved.Thirdly, it is necessary to build a competitive global supply chain system, take advantage of Gree's advantages in speed, efficiency, and cost control, improve efficiency and maintain the company's leading edge in cost through procurement, manufacturing and logistics as a whole, and build Gree electrical competitiveness.Finally, high-end brand products should be created, the value of products and brand value should be improved, and the brand image should be enhanced through the improvement of product design and core technology.For Gree, internationalization is just the beginning. How to establish and maintain the company's long-term international competitiveness, produce world-class products and create a first-class brand will be a more difficult process.Dong Mingzhu realized that a really good marketing strategy is not only to sell the goods and earn money back, but also to think about whether the factory and the merchant can achieve the same interests through cooperation. Only in this way can the business be successful more stable and long-lasting.For this reason, it is necessary to actively protect the interests of consumers and maintain a good cooperative relationship with distributors. At the same time, it is necessary to adhere to the principle of high standards and high quality in production. Only in this way can Gree achieve long-term development and win in the international market go further.Dong Mingzhu believes that if Gree wants to be a brand and last for a long time, it must actively cultivate the market, and Gree should let foreigners gradually realize that different companies in China have different products with different quality.Resolutely going out is to change the world's perception of Chinese products.