Chapter 24 challenge niche

The two hidden champion cases selected in this issue can inspire us to think about the grand proposition of the moment-do Chinese companies still have competitiveness besides cost? Beginning in the early 1990s, Japan, which once created a post-war economic miracle, began to fall into economic stagnation and depression for more than ten years.Scholars from various countries have different opinions on this. Among them, "Is Japan Still Competitive?" co-authored by Michael Porter and two Japanese professors Hirodaka Takeuchi and Mariko Kanhara. "The book attempts to answer this question.

Porter's strategic theory has always attached great importance to the analysis of the industry. He firmly believes that the level of profitability of a company is not only a matter of hard work, increasing revenue and reducing expenditure, but also a key premise lies in the choice of the industry.The typical business philosophy of Japanese companies mainly emphasizes the former.Because of the neglect of the latter, "Japanese firms often flock into high-tech, sunrise, or growth industries without fully understanding what makes them attractive and end up stuck in the unattractive industry".

Because everyone chooses similar industries, it is inevitable to think about problems and deal with competition on the same level.As a result, everyone has to use ruthless and single-minded efforts to achieve the best production. The competition has become a race with no winners along the same road, and the price war has become an inescapable fate. Similar to the situation in Japan, China's business culture also seems to lack a tradition of loving niche markets.In the early days of China's market economy, the needs of consumers were very simple and lacking in individuality. Almost every industry had huge demands and lucrative profits.Everyone makes TVs, refrigerators, and water heaters... In the beginning, it was true that everyone made money.However, as the market demand becomes more and more subdivided, especially when Chinese enterprises are getting more and more deeply involved in the global economic system, many large enterprises that once dominated the massive market began to feel a certain Japanese-style helplessness— —The original main business has become less profitable due to too many competitors, and the road to salvation is unknown.But at this time, we will find that some niche market competitors who "strike the right way" have become extraordinarily energetic.

Zhejiang Flying Eagle Racing and Shenzhen Weixin Paint Co., Ltd. to be discussed in this issue can be said to be two maverick companies. They have respectively found a niche in the consumer goods market and the industrial product market - racing boats and automotive paint.Now they have become the best suppliers in their respective market segments, and continue to enjoy the happiness of high added value and rapid growth in fields where few peers dare to challenge. Although their success has benefited from some coincidences, such as the help of the old German gentleman Klaus to the Xiong brothers.But we have to admit that in such a story, the entrepreneur's keen sense of the niche market and the paranoia of going forward are more critical factors.In fact, there are still many precedents for great miracles in a field that seems to have no chance.For example, Changsha Yuanda: When the Zhang brothers worked out the first direct-fired central air conditioner in China 12 years ago, household air conditioners were still a novelty. Few people believed that this small workshop could produce world-class quality direct-fired lithium bromide. machine.Another example is Shenzhen Huawei: In the early 1990s, when Ren Zhengfei decided to research and develop program-controlled switches by himself, few people thought that Chinese communication companies could still wrestle with giants like Nortel and Luxun.

Regarding the choice of the industry, Ren Zhengfei has a very interesting saying: "It was because we were naive that we started communication products, but we couldn't turn back." Ye Fengying said: "At that time, I didn't think too much, I thought too much. If you are clear about it, you dare not do it.” How similar to Nair.