Chapter 11 "13 Ways to Die" for Private Enterprises

Review background: 2001 was another turning point for Shi Yuzhu. At this time, it was just 10 years since he founded the Giant Group in 1991. He has gone through a cycle: his Giant Building has collapsed, and weeds have grown on it when we look back; 1997 After the giant disintegrated in 2000, he went to climb Mount Everest and experienced life-threatening adventures. When he came back alive, he said that he had seen through life and death, and he wanted to settle down and start a new business.Under such circumstances, Shi Yuzhu started his journey of phoenix nirvana. 2001 happened to be the time for him to pay off his old debts and get a new life. During this year, Shi Yuzhu participated in a press conference in Shandong. At the meeting, he expressed his feelings about the ill-fated fate of private enterprises, and summed up 13 so-called "How to die".

In fact, Shi Yuzhu's statement is nothing more than a summary of what the giant has experienced.Shi Yuzhu is a gifted orator, his well-developed thinking coupled with sharp articulation is almost unmatched by anyone.Therefore, after Shi Yuzhu summed up these "life and death experiences", "history fans" in the society recalled the past with emotion.But sensible people will find a problem as huge as a giant after reading it: the 13 ways of death summarized by Shi Yuzhu all come from external causes, and none of them is a self-examination.This may be the true portrayal of Shi Yuzhu in 2001.

In 1998, Shi Yuzhu wrote the article "My 4 Big Mistakes" with tears in his eyes, detailing the crux of his own development. During the dialogue, Shi Yuzhu knew that he died in the blind pursuit of development speed and blind pursuit of diversification.But by 2001, Shi Yuzhu was no longer the same Shi Yuzhu that day. In front of the public, he already hoped that he could appear as a weak and victim, so as to seek new opportunities. Obviously, he succeeded. After Shi Yuzhu successfully launched "Melatonin" in a low-key manner, he entered the field of "online games" and used his usual techniques to create a new miracle——In November 2007, Shi Yuzhu's online game "Zhengtu" is listed on NASDAQ in the United States.Of course, after publishing the article "13 Ways to Die in Private Enterprises", Shi Yuzhu seldom had any other surprising words, which is probably the result he wanted.

In February 2001, Shi Yuzhu participated in a press conference held by Taishan Industry Research Institute.He said in his speech: "I did a rough calculation, and there are at least 13 ways to kill a private enterprise. This does not include internal reasons of the enterprise, such as poor management." The first way to die is unfair competition. "If a competitor wants to punish you, you are in the open, and he is in the dark. It is easy to kill a company. There are many ways to damage your reputation, such as false accusations and lawsuits. In the autumn of 2000, half of the national people's We receive complaints about Melatonin products every day, which hinders the sales of Melatonin. After investigation, we found that some competitors hired several people in each city. The main job of these people is to write about Melatonin letter of complaint. After the incident was discovered, the letter of complaint disappeared immediately.”

The second way to die is to encounter malicious "consumers".Shi Yuzhu said that they once met a person in Hubei who complained that the manufacturer's products had problems with bone hyperplasia in a certain part of his body. The third method of death is the encirclement and suppression by the media.Perhaps because of the lingering fear of the media, Shi Yuzhu did not talk about the role of the media when the giant fell, but cited the example of the bank: "For example, once the media sieges a bank, no matter how healthy the bank is, it says that you are already insolvent, and as long as depositors withdraw their money, the bank will definitely die."

The fourth way to die is unobjective reporting on products.Shi Yuzhu believes that in the field of pharmaceuticals and health care products, no product can be 100% effective. If it is 70%-800/0 effective, it will be better. If it is 90% effective, the product can be called excellent; "If the media Only report the 10% that are ineffective, and the product will be ruined immediately." This is because, "In China, when it is said that the product is not good, the common people are the easiest to believe." The fifth way of death is that the competent department kills the enterprise. "If the product gets bigger, even if there is only one ten-thousandth failure rate, if it is complained to the competent authority, the approval of the entire product may be revoked." There are also penalties from local competent authorities. "For example, the Administration for Industry and Commerce has a task of fines every year. If the task cannot be completed by the end of the year, it can only find good companies to complete the task, because these companies have cash."

According to Shi Yuzhu, in a certain city in 2000, they were fined 500,000 yuan by an industrial and commercial administration for no reason, and they were not allowed to sell products locally if they did not pay the 500,000 yuan.So, had to pay the fine.Unexpectedly, just one month later, another industry and commerce administration office also said that the task had not been completed, and asked them to pay 500,000 yuan. "We can only swallow our anger. Those who are enterprises, especially private enterprises, can only keep their heads down if they want to survive." The sixth death method is the flexibility of the legal system. "Many things, it's a good thing for you to say that, but another way of saying it is likely to be illegal and criminal. Coupled with the imperfection of the legal system, you have to violate the rules. For example, it was stipulated that importing computers must have approval documents, but the private Enterprises can’t get approval documents at all. If you want to make computers, you can only spend money to buy approval documents. According to relevant regulations, buying approval documents is illegal. If you don’t do it, you will break the law. There are many similar situations in other industries. .”

The seventh way to die is to be cheated. "Sometimes a company will run out of cash after its funds are cheated, and even the whole company will go bankrupt. Especially for private companies, the legal protection is very limited." The eighth way to die is the threat of pink eye. "There are many pinkeyes, and there are many rumors. The rumors about the company are good, but the most feared are rumors about the product. If there are rumors, the product will not be sold immediately." The ninth way to die is extortion by the underworld. "If the enterprise is well established, the underworld will come to extort money, unless it is a very large enterprise." Shi Yuzhu obviously believes that the underworld forces have penetrated every corner of the private enterprise's development process.

The tenth way of death is to offend an official who uses his power to create obstacles to the development of the enterprise. The eleventh way of death is "offending a certain villain may also kill the company, for example, he poisons the product". The twelfth way of death is encountering fraud. "The more counterfeit goods, the impact on sales is one aspect. The most important thing is to affect reputation. In a certain place in Jiangsu, there is a relatively large counterfeit den, and every household counterfeit, and it is useless to crack down on counterfeiting, because there is localism protection in the local area. Later, we The public security officers from other places were invited to seize fake products and counterfeit equipment worth tens of millions of yuan on the spot, and all the stolen goods were stolen. But in the end, the local public security department asked to send the people back, and they were released after they were sent back, and then continued to fake " Shi Yuzhu said helplessly: "Now, we have nothing to do when we see fake products, so we have to buy them back by ourselves."

The thirteenth way to die is the entrepreneur's own safety.Shi Yuzhu said that he himself had received many threatening calls, but such calls had never occurred when he had nothing.