How the hottest famous enterprises step into the t

How famous enterprises enter the war? Photoelectric encoder will have a slightly conservative trap of pulse signal output

whether it is the sudden collapse of industry giants in the rapid expansion, or the cautious transformation of many enterprises from becoming bigger and stronger to becoming stronger and larger, what we see is more the painful lessons brought to enterprises by strategic rashness, And we often ignore another strategic trap that is very dangerous and can kill Enterprises - the strategic conservative trap. Entrepreneurs need to pay enough attention to the strategic conservative trap around them, and deal with the problems it brings by improving the enterprise's strategic management system. We summarized four different types of strategic conservatism traps caused by two main reasons:

A. leaders' lack of ability leads to

1 Conservative closed type

2 Calf care complex type

b. caused by the lack of strategic management system

3 Perspective static type

4 One of the types of strategic conservative traps: conservative closed type typical symptoms: due to the lack of determination, decision-making ability and driving force of enterprise leaders, the wandering in the development direction is not defined. Some are cautious, worried about gains and losses, and some are content with the status quo. Some enterprise managers overemphasize "only do what I am familiar with and good at", which restricts the thinking and hands of enterprise development. These enterprises often ignore the actual needs of the market and customers. Facing new market opportunities, they are too conservative in strategy, dare not break through themselves, and actively create new opportunities for new growth, resulting in the company always seeking development in the already crowded industrial fields, Lost development opportunities in many emerging fields. However, some enterprises, due to the unique cycle of the industry or the poor overall situation of the industry, or the depressed operation of the enterprise, lack of decisive judgment, decision-making ability and proactive mentality of the senior management of the enterprise, adopt a more conservative enterprise strategy, and this strategic conservatism has brought the enterprise into a vicious circle of operation

case 1: Ericsson, an internationally renowned telecommunications company, took the first step towards becoming the world's largest mobile communication company after delivering the world's first commercial mobile system in 1981, and developed successfully and steadily in the next ten years. However, in 2001, like other companies in the industry, the company was impacted by the global economic downturn and faced the difficulties of the transition of the third generation mobile (3G). However, the greater challenge facing the company is whether it is strong enough and able to compete with the external core competitive elements. In the first quarter of 2001, the market share of the company was only 7%, while the market share of its major industry competitors, which were on par with itself five years ago, soared to 40%. What caused such a big change in a company in five years? To sum up, the main reason is that they pay too much attention to the development of the core competence of enterprises - "their best technology and product advantages, high technology", while ignoring the trend that the market and customer demand are changing from technical type to cheaper universal type, and adopt a more conservative development strategy, only doing their strongest and best fields, Failed to adjust their business portfolio and market strategy in time to the emerging market changes and customer needs. Some critics bitterly commented that the company has good technology, and it really pays too much attention to technology, but failed in some basic parts, such as appearance design, availability, battery life, etc. One banker said, "the company is not a consumer goods company - they are a group of engineers who don't care about appearance."

case 2: Xerox, an internationally renowned copier enterprise whose predecessor was founded in 1906, launched its first copier in 1959 and made it the best-selling industrial product in history. The company has almost become a synonym for copiers. However, it is this deep-rooted thinking that "we are a copy machine company". The company only makes its own familiar products, which makes him turn a blind eye to many products with market potential invented by the R & D center. In addition, the investment strategy and products are shown in Figure 1: strategic mistakes led to large-scale layoffs in 1993, 1998, 2000 and 2001, and the stock fell to $7 per share in December 2000

case 3: St microelectronics company, a global, independent and leading semiconductor company, is mainly engaged in the design, R & D, production and sales of integrated circuits and discrete devices. Its products are widely used in computer, communication, automotive and industrial automation control systems, plastic recycling and granulation. If the machine is not cleaned in time, the waste plastics in ordinary life will be processed and regenerated into the plastic raw material system required by the enterprise. Since the merger of the two semiconductor companies into one in 1987, the sales volume of that year was 851 million US dollars, the number of employees was 17300, and the after tax loss was 203million US dollars, ranking only 15th in the world. At this time, the decision-making level realized that it was time to take action, and introduced a series of measures such as product complementarity, technology portfolio, customer optimization, etc. to reduce the number of production bases and employees while increasing sales and market share. When the plan was being carried out on schedule, the market experienced a cyclical depression, and the company's financial situation worsened in 1990, continuing to suffer from financial deficits, Guided by the conservative strategic mode of the company's senior management, the company implemented the "slimming down" movement of the enterprise, reducing personnel and production scale and expenditure. Due to the further weakening of competitiveness, the market share of the enterprise was further reduced. At this time, the senior management of the enterprise realized that this strategic conservatism would lead to a vicious circle in the operation of the enterprise, and began to re tap the opportunities that could promote the benign and healthy development of the enterprise. They actively introduced a variety of management modes for the company, such as the total quality management system, and reached a consensus on the implementation of the strategy through the enterprise objectives, strategic guidelines, guiding principles, future trend prediction, etc, Connect the company's goals with the Department's goals, and make the work of employees more realistic and challenging. The top management reversed the crisis faced by the enterprise with practical and aggressive strategic guidance

case 4: Konka, a well-known domestic household appliance manufacturer, encountered the adversity of the overall decline in the development of the industry in 1999. The company still adhered to the strategic conservatism and stubbornly tried to use price war to prevent competition in the same industry on its own mainstream product line, but the result was not ideal. At the same time, the company readjusted its business pattern and further expanded its production scale around the four production bases, resulting in a large backlog of products. In the following years, in order to find new business growth points, the company invested and tried in the fields of LCD and LCD respectively, but did not achieve obvious results. Due to the poor overall situation of the industry and the above-mentioned problems, the overall state of the enterprise is depressed, and the strategy is more conservative. The adverse reactions brought about by the low morale of employees, lack of enterprising spirit, instability of the people, and the decline of brand status make the top management realize that if it is not improved, the enterprise will fall into a vicious circle of operation. Driven by the new senior management, "only development can survive, only system can last forever" has become the common goal in the hearts of employees. New passion and fighting spirit have replaced the previous decadence and depression. Under the guidance of the follow-up more proactive "HD strategy", the enterprise has not only given full play to its technical advantages, but also improved the overall sense of grade, value and technology of the brand, So that the enterprise has gradually walked out of the trough of operation

the second type of strategic conservative trap: calf protection complex type

typical symptoms: due to the lack of breakthrough thinking of the senior leaders of the enterprise, the "calf protection complex" and "business inertia" produced always regard the enterprise as their own children, full of feelings for the enterprise, deeply afraid of loss, and never give up. Even if the development and products of the enterprise can no longer meet the market demand, it still adheres to the original business model and vows to live or die with the enterprise. Even if there are good cooperation opportunities, it is unwilling to form cooperation, so as to reduce the risk of losing the core technology, products and control of the enterprise

case 1: a well-known private high-tech enterprise, with rapid growth in the market, but medium-sized, is in the cultivation and growth period of the market, facing many external pressures such as market development and fierce market competition. In order to maintain the long-term sustainable development of the enterprise, it is necessary to continuously invest new funds, which has a strategic demand for external investment. However, in the actual operation of enterprises, there will inevitably be some contradictions between financiers and investors, and these enterprises are worried that the participation of investors will control their main companies, and may take away their core technologies and products, or even mature projects. Based on such concerns, the company adopted a conservative strategy and did not raise funds in time to continue to maintain its competitive advantage in the market. The managers of enterprises believe that although the development of enterprises is a little slow, it is much better than losing the control of the company and losing their core technologies, products and projects. Just like this, this company was dominated by its main competitors in most of the market in a short time. It not only lost its leading position in the market, but also was surpassed by many competitors in the industry, and became a second-class enterprise in the industry from the leader of the industry

case 2: a well-known domestic household appliance enterprise specializing in the production of rice cookers has always adhered to the principle of not being familiar with rice cookers for nearly 10 years, committed to the intensive cultivation of rice cookers and achieved remarkable results. With the growing maturity of rice cookers in the market, the company has also stepped into the mature period of enterprise development. Although the company still makes a little profit every year, compared with the performance of previous years, it is already not as good as it used to be. Some people put forward a series of reform measures for the development of the company, and believed that strategic adjustment should be carried out in time to find new growth points of the enterprise, but the boss of the company did not think so. He always adhered to his own concept. The company has come a long way from its establishment to today, and where is it willing to give up. Based on such strategic conservative enterprise development ideas, enterprises stick to the original product categories, rather than bravely face the competition and adjust their strategies according to the actual situation, and ultimately the enterprise can only end in failure

trap type 3 of strategic Conservatism: perspective static type

typical symptoms: due to the failure to establish an effective dynamic strategic management system, enterprises look at the changes in the external macro environment, competitive environment and market environment from a static perspective. The low adaptability to these changes in the strategic environment and the conservatism of the strategy they adopt eventually lead to the loss of industry advantages, In the fierce market competition

case 1: Wanjiale, a well-known domestic enterprise producing gas appliances, quickly occupied the domestic market with the help of strong marketing strategies and differentiated advertising effects within a year. The advertising language they launched