The development of a company may not tolerate half a mistake, if you do not grasp several opportunities, or do not grasp the right direction in several opportunities, it may be lost into a thousand years of hatred. Just like the industry mentioned today, there is a home appliance company that has been the first in the industry for seventeen years, but because of the two decisions, the market value of more than 60 billion yuan has almost completely evaporated in a short period of time. Now it has become a foundry of Xiaomi.
Changhong
Presumably, many people recognize the brand of Dao Changhong. In the past, many people's TVs at home should be this brand. In the early days, the brand did not produce television, but radar. As a government-backed brand, he was founded in 1958. During the 15th Five-Year Plan period, he was also a key project project. In 1970, Changhong began to produce color TVs. As one of the earliest brands to produce color TVs, the price of color TVs in Changhong during that period was much lower than that of other brands. In 1995, Changhong only relied on Changhong color TV, and its sales exceeded 10 million. It can be said that its development was quite successful in a very early period.
Changhong's first mistake
Let's first look at the first mistake that Changhong made: a mistake in predicting the opponent. Initially, Changhong was able to break through the siege, mainly by taking advantage of the price, when there is no qualitative difference in product quality, the lower price of Changhong will be more popular with the public.
In the mainland color TV brand owners still have some competitors, Skyworth, TCL, Hisense, these are basically the public well-known several TV brands. At that time, Changhong did not want to share the cake of the color TV industry with other brands, so it wanted to limit the development of other brands through materials, and purchased a large number of picture tubes. However, in the later development, the picture tube has not become a necessary production factor for color TVs due to various factors. In this way, Changhong Company only caused a lot of economic losses in vain.
▲Changhong
Second error
Let's take a look at the second mistake That Changhong made: that is, the choice between LCD TV and ion TV. If this is a wrong decision, everyone should be able to guess which one he chose, and it is clear that Changhong chose Ion TV among the two.
Changhong spent more than four billion yuan on ion TVs, and the final products were completely replaced by LCD TVs. The main reason is that the price of LCD TVs is much lower than the price of ion TVs, and the effect is not worse than ion TVs. Obviously, in this TV upgrade, LCD TV won. This time the choice of failure has led many people to start buying more from other TV brands. And after these two big decision-making mistakes, Changhong's position in the color TV industry began to decline.
▲Changhong specialty store
In the past, Changhong's market value was nearly 67.8 billion, but now it has evaporated nearly 80%, leaving only 14.8 billion yuan. Including the profits of these two years, there is still no and great improvement. At present, the main business of Changhong is no longer color TV, but air conditioning refrigerator. Now, Changhong is also Xiaomi's air conditioning foundry.
▲Changhong store
Conclusion
Although Changhong is no longer as brilliant as in the past in the process of continuous development, they have not begun to decline as everyone thinks. They are now in the electronic information business, the new energy automobile industry, the semiconductor industry, the photovoltaic industry, are constantly making progress, so now Changhong, although it has lost its advantages in color TV, but they are still constantly developing and innovating. It is also actively expanding other businesses.
▲Sichuan Changhong Electronics Factory