Home Categories political economy Case Study (Third Series): Returning to the Origin

Chapter 6 Theme of this issue: Back to the origin

No matter what a company does and what kind of business model it adopts, it cannot do without two things, one is its own core, and the other is the market environment.Change, in essence, is an endogenous and self-forged process, rather than a rigid follow-up.No matter how it changes, the core things cannot be changed, but the external things can change with the changes of the market situation.In other words, any change must revolve around an inherently unchanged core. In the theme case of this issue, we have seen that VV, which once relied on soy products and soy milk to achieve the No. However, a few years later, when Vivi looked back, she was in a dilemma between withdrawing from the dairy business and concentrating on making soy milk.In the apparel industry, Meters-Bonwe is an anomaly. Ten years ago, the short-selling factory opened its first store for virtual operations. Now it has achieved annual sales of 2.5 billion through virtual operations. But at this moment, we saw that Metersbonwe planned to build its own factory, which made people think: Should Metersbonwe give up the virtual operation?Acer, a well-known brand in the IT industry, is the No. 1 brand in the European personal notebook market, but in the Chinese mainland, at the beginning of 2005, it has fallen out of the top ten!Acer has been operating in the mainland for 12 years. The channel management model has evolved from the general agent system to the distribution system. Now it has begun to promote the "new distribution model" and returned to the general agent system, so as to promote Acer to become one of the top three PC brands in the world within two years. Acer is going through a reincarnation of channel changes.Returning to a previous state, the three cases seem to be returning to their original point.

In fact, regardless of industry changes, or changes in production methods or channels, they are all adjustments made by enterprises to changes in the market environment. The purpose is to adapt to the needs of market changes and to better survive, develop and make profits.Therefore, it can be said that this return to change is to some extent the result of companies weighing rationally about market changes.However, the subsequent impact of this return on the enterprise is still unknown.
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