Home Categories political economy Cases (Sixth Series): Prevention and Response to Anti-dumping in the Post-WTO Era

Chapter 5 How to break the vicious circle of "brothers are like feuds"?

No matter in the natural world or in the social field, there is a very strange abnormal phenomenon: once those who are closest to each other become competitors, they are often more cruel than those who are relatively far away. In the social field, there is a saying that "brothers are like feuds". Those brothers who are not in harmony, their resentment towards each other is like a feud, especially brothers who were born in emperors or wealthy families. In the commercial field, there is a saying that "peers are enemies", and the competition among peers is often the fiercest. The familiar battles between Midea and Galanz, Haier and Hisense fully demonstrate the fierceness of "same competition" in the commercial field .

Why is there such a situation of "brothers are like feuds"?How to break this vicious circle? There are two main reasons for this phenomenon of "same species competition" and "brothers are like feuds". A notable feature of insufficient competition is that there are few objects participating in the competition and it is easy to obtain monopoly. Therefore, in order to obtain monopoly resources and have an absolute advantage, "same competition" is more cruel than ordinary competition. The most typical case is the struggle for the throne by the children of the ancient royal family.Whoever wins the competition will have all the resources.Therefore, in the battle for the throne, the palace coup is often the bloodiest.In the Xuanwumen Incident, Li Shimin killed all his outstanding brothers, and the Emperor's House is the most extreme representative.Whether it is jealousy or framing, it is all rooted in the inclination of interests.

In all fields of insufficient competition, the core root of the widespread phenomenon of "brothers are like feuds" is basically to obtain some kind of monopoly resources or overwhelming advantages. The same is true in a non-competitive business landscape.Once you defeat your competitors, you can gain an absolute advantage in the industry.Therefore, when only Gome, Suning, Dazhong, and Paradise are the only domestic chain giants left, crazy industry competition is inevitable.And when the current confrontation between Gome and Suning is even more irresolvable. The so-called "same-city competition" between Midea and Galanz, Haier and Hisense in the past few years is also to gain an absolute advantage in a sense.Midea, whose main business is air-conditioning, does not want another air-conditioning giant to appear around it, so as not to lose its absolute advantage in Shunde base. Similarly, Galanz does not want Midea to threaten its absolute advantage.As for the dispute between Hisense and Haier, in a sense it is also to gain an overwhelming advantage. Whoever wins will be favored by the Qingdao government and get more policy support.

In many enterprises, the battle for succession is very similar to the battle for the throne in ancient times.Once the winner wins, he will gain an overwhelming advantage, while the loser often chooses to leave.In GM, once the successor is decided, the losers who participate in the competition often no longer stay in GM; in China, there are also many such examples. The pursuit of the same gene is also a common law in a wide range of fields.Because "brothers" are a natural relationship and cannot be chosen, the similarity between brothers often determines the relationship between brothers.If a brother is very smart, capable, and outstanding in virtue and ability, he does not want his brother to have bad conduct, because the connection of fate will damage him too. If brothers do not "smell like each other", they are both brothers and buddies. , or they don't sell each other, and they will be disliked for the rest of their lives.

In the business field, there are also brothers who are like enemies on the basis of seeking common ground due to genes.A few years ago, two hams in Jinhua were found to use dichlorvos to repel mosquitoes, which caused many people to stay away from hams, and many companies in the entire industry closed down in large numbers.It is estimated that such a "brother" must be hated to death.We are all honest and honest, but you are messing around, causing everyone to suffer. The way forward when you come is the way back when you go.Getting out of the vicious circle of "brothers are like feuds" also lies in breaking the foundation of its existence.

First, change insufficient competition into full competition. The root cause of the slaughter of royal brothers lies in insufficient competition: According to regulations, when the emperor has a son, only the direct son can inherit the throne, and as long as he wins the competition in the son series, he can rule the world. Inheritance, often by hook or by crook. The same is true in business competition. There are only one or two capable successor candidates in a company, and factional disputes are prone to occur. However, if there are more capable people, there will be prosperity.The most typical one is Acer back then. Its subsidiaries were full of talents, and the pan-Acer department also formed a huge enterprise cluster.

Breaking the system that restrains competition and opening up competition is often the prerequisite for the prosperity of many industries.As a result of monopoly, one is the unscrupulous parties in limited competition, like enemies, and the other is the general "incompetence".Because as long as one obtains a monopoly, one can sit back and relax, so everyone focuses on how to obtain a monopoly position, and does not care about products, services, or consumers' demands, which deviates from the essence of commercial society and creates false prosperity.China Mobile and China Unicom are both powerful, but the service enjoyed by Chinese people is surprisingly poor compared with foreign countries, and compared with some market-oriented telecom giants, China Mobile and China Unicom are far behind.It can only be prestige in the country.

Open competition is different, because there are many competitors participating in the game, and each party may rise. Therefore, the company is forced to not relax at all times, strive to improve its competitiveness, and make the company's main energy focus on external competition. To enable all enterprises to achieve overall development.Finally, the prosperity of this industry is formed.The home appliance industry is undoubtedly the most typical example. A thriving industry is often balanced and dynamic. There are several industry giants who control the industry structure. A company cannot become dominant by eliminating several other competitors at the same time, and because of the existence of the second echelon, it cannot unite several giants to monopolize the market, and the entire industry is in a dynamic and healthy competition.However, the domestic auto industry cannot reach the level of development of the home appliance industry. To a large extent, it has broken the complete monopoly competition of China Mobile and China Unicom, but there is no second echelon, no strong private car group, and the dynamics of competition cannot be achieved. Semi-monopoly and semi-open competition - the monopoly of state-owned enterprises on the automobile industry.

Second, gene mutation or innovative business model. The same is true in the family. Many people are at odds with brothers. The first generation is like an enemy, but the second generation's hatred fades away. After several generations, the hatred is gradually forgotten.Because after several generations of inheritance, the original differences have become obvious genetic mutations—they are independent of each other so that the original internal threat no longer exists, and the correlation of fate is greatly reduced. The same is true in the commercial field. When commercial innovation occurs in the same industry, it tends to weaken direct competition and reduce connections.Form new industries and achieve more great business empires.

A few years ago, Changhong fought with Skyworth and TCL. Later, Changhong invested in rear projection, Skyworth developed plasma, and TCL focused on LCD, and began to form differentiation. In the end, several companies became giants in new fields. The life-and-death competition is weakened. The innovation of the business model can effectively avoid the situation of "brothers become enemies". In the United States, according to statistics, 70% of emerging companies were founded by employees who resigned from the original company. The reason why they survived is that they did not start a full-scale confrontation with the original company, although they also have similarities in competing for survival resources. , but being as different as possible is the reason for survival.

Therefore, for many companies, in order to remain invincible in the competition, it is very important to innovate business models.Regardless of the differentiated competition advocated by Porter, or the later popular blue ocean strategy, they all involve business model innovation.The innovation of business models is most fully manifested in emerging industries.The Internet industry is the most typical representative. Sohu, Sina, NetEase and other portal sites dominate the world, basically blocking the possibility of another strong portal site, and when many portal operators die on the beach, Jack Ma started a B2B business. Alibaba has made a lot of money; when everyone was doing e-commerce, they didn't expect that Chen Tianqiao would come out and make a fortune by playing games. The innovation of business model is especially important for small companies. In order to prevent being eaten by big companies, many small companies often take risks and take the lead. A new market and new technology are often discovered by small companies first. In fact, new Business models are often created by small companies and new companies. This is also the charm of the commercial society. New forces are constantly rising, promoting the development of the entire business era in the ups and downs, making the sky full of stars more brilliant. Third, establish a symbiotic relationship based on interests When Mengniu first started its business, it claimed that it would build the "Inner Mongolia" grassland brand together with other grassland dairy companies, avoiding the situation of "fraternal killing" and gaining opportunities for Mengniu's initial growth. At the same time, the dairy industry in Inner Mongolia has indeed flourished. Even if Gome and Suning are "rivals", there is symbiosis.Many stores of Gome and Suning are open opposite each other. It is both a competition and a symbiosis. Why do we say it is a symbiosis?Because in many locations, there are not enough stores, and it is really impossible to form a good store and accumulate popularity.The same is true for KFC and McDonald's. When they open together, consumers have more choices and more people come.
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