In the past, in the product-centric era, companies were greedily chasing market share and rapid growth, using these as guiding lights and compasses for enterprises, focusing on continuous improvement of products and creating economies of scale. Under the guidance of this kind of thinking, many companies shouted out such slogans: "Increase market share, profits will naturally come to fruition." ”
In today's digital world, these one-sided cognitions have led enterprises to a dead end. Once brilliant enterprises, such as Ford Motor, Koda, Sony, Lenovo, etc., these leading enterprises in the industry, facing the current market competition, have gone downhill. The reason is that one of the key points is that the profitability is weak, and there is not enough profit to promote the development of the enterprise, even if it has an absolute advantage in market share.
Driven by increased global competition and the rapid advancement of digital technologies, many companies have to win market share in the competition by lowering prices. In this case, no profit zone arises. It subverts the previous rules, every industry makes money, and enterprises with high market share make the most money, even in agriculture, transportation and other industries, it is one of the few.
Excessive pursuit of market share and high growth leads to wrong corporate strategic planning that undermines the long-term value of a company. And unprofitable market share and high growth will make companies fall into a huge abyss. This hazard is reflected in three aspects:
First of all, the strategic planning of enterprises is not designed reasonably, excessive pursuit of high growth and market share, increase the risk of business operations, establish a wrong career development orientation, and are not based on profits.
Secondly, enterprises do not focus on their own advantageous business, but are forced to reduce prices or blindly expand the scope of business, and suffer losses in industries without core advantages. Both of these behaviors can lead to a loss of profitability for the business, and the end result is no profit particles and no revenue.
Finally, the company has not changed its business thinking, and has not taken the customer as the center and locked in the company's customer base. In the cloud era, for any enterprise, it is necessary to accurately locate the target customer group and obtain returns by creating value for customers.
In order to ensure the long-term stable development of enterprises, when the needs of customers change, enterprises must also make positive responses and adjustments to such changes, redesign the strategic planning of enterprises, lay out new business boundaries, find new profit areas, form new core competitiveness of enterprises, and build dynamic adaptability of enterprises.
In the process of business operation, take the user as the center to meet the needs of users. Moreover, this satisfaction is not a one-time satisfaction, but a lifelong satisfaction. The goal of the enterprise is to create user lifetime value. In the end, the company's products must not only be of good quality, but also create a good brand.
Wang Tao, the founder of DJI Drone, is an obsessive fan of aviation and flight control, who has been obsessed with model aircraft since childhood and fantasized about flying in the sky! The Greater Shenzhen Xinjiang he founded, focusing on the field of unmanned aerial vehicles, has developed drone products that amaze the world, and has become a "unicorn" in the world's drone industry.
Enterprises should be customer-centric, the starting point is the customer, the ultimate goal is assets and core competitiveness. Customer-centric thinking focuses on the needs and preferences of customers, and is committed to finding the most suitable choice for customers' needs and preferences.
Customer-centric must be value-oriented, brand-oriented product quality strategy, it is necessary to have a strong craftsman spirit, the enterprise must be to achieve excellence, focus on drilling wells, rather than digging trenches. Establish competitive advantage and build an unbreakable "moat". Always insist on creating and innovating, always love their career.
Japan's century-old enterprises have 20,000+, is the world's largest number of century-old enterprises in the country, most of which are obsessed with a cause, the "craftsman spirit" of these business operators gives people inspiration and admiration, such as the world-famous Japanese "sushi god" Ono Jiro, a lifetime of practice of "heart and technology integration" faith, decades of as a day to pursue the ultimate quality of sushi and the peace of mind to the faraway integration of the realm, so that the world is amazed and impressed.
The eternal logic of business success is that the first achievement of users, to create value for users, in order to naturally obtain profits. Therefore, enterprises should produce products with soul, temperature and personality, so that users are satisfied and shocked. Just like world-class companies, there is a lifelong favorite fist product, such as KFC fried chicken, McDonald's hamburger, Chef Kong's braised beef noodles and so on.
Google co-founder and CEO Larry Page once said, "Our goal is sustained revenue growth and absolute profitability." And business operators with "profitable" talent are guided by "profitability", formulate clear development goals for enterprises, and invest a lot of time in formulating growth strategies, so as to win future customers, obtain future profits, and promote the rapid development of enterprises.
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