Chapter 10 Expert Commentary: Characteristics of "Industrial Opportunism"

Academically, there is no clear definition of "industrial opportunism", but those business organizations that pursue industries with short-term high-speed growth opportunities regardless of their own resources and capabilities are called "industrial opportunism".An in-depth analysis of the external conditions and internal roots of industrial opportunism has the following characteristics: From the perspective of the external environment: the industry-related macro-environment is favorable, the industry is growing at a high speed, the barriers to entry are usually not high or high but there are always policy margins due to lack of regulation, companies of different scales and industries have entered the industry one after another, and competition within the industry is increasing Intense, so that the industrial life cycle is greatly shortened.

From the perspective of internal sources: the company aims to pursue short-term profits, and the industries involved have little or nothing to do with the company's mission positioning, and the investment is relatively large. Obviously, due to the good expectation of future profits, "industrial opportunism" only sees the so-called external "opportunities" before entering, while ignoring its own disadvantages and potential "threats" of the industry.After entering, due to the sharp changes in the competition situation and even the evolution of the macro environment, the profitability of the industry has been greatly reduced, and the profitability has generally decreased.They had no choice but to withdraw their troops, and embarked on a new round of "industrial opportunism" journey.

In fact, when the "opportunity" cannot match the internal advantages of the enterprise, it is "temptation".Just like "Ochs, Amoi".Secondly, for enterprises in the entrepreneurial stage, opportunity is indeed strategy. Although opportunities and risks exist together, there is no other way to develop.For enterprises with a slightly larger scale, they should pay attention to predicting the macroeconomic form and industrial development trend, and invest in promising industries (regions) for the next five years or even longer like Li Ka-shing. Risks brought about by blind investment.In fact, "profit for profit" is only one of the strategies of enterprise stability, not a growth strategy.Drucker once said: "Profit is nothing but the conditions for the survival of enterprises... People cannot live without air, but people cannot live for air, just as enterprises cannot do everything for profit!".As everyone knows, the more intense the pursuit of profit, the greater the loss.Lang Xianping once said that he has not found any company that is in trouble not because of the pursuit of profits.

Some people say that people should follow the principle of "cold head, hot feet, and fullness" for longevity. Chinese companies just don't give up any opportunities (in fact, they are temptations). Real estate, water and electricity, coal mines, mobile phones, as long as they make money, they can do anything.Some people lamented the failure of Zhengzhou Asia's diversification: I don't know what else in the world it can't do? !Some Chinese enterprises are even "suffocated by opportunities" because of the abundance of opportunities. "Built to Last" reveals the true meaning of a century-old famous enterprise - "unchanged core concept, structural clock-making mechanism and variable operation mode".I hope that our national enterprises will be less impetuous, more calm, less homogeneous, more innovative, less paving, more digestible!