A New Set on the Sand Table in the “Post-WTO Era”
The former President of Acer Incorporate, Mr. ZhenRong Shi, who is now retired, once came up with a worthy angle for recessing value, known as “the smiling curve.” He said that in the process of production, the lowest benefit comes from production itself whereas the highest benefits would most likely come from the two ends of the smiling curve—research and marketing. An enterprise should focus on a point where it is most at home in, so as to create the utmost profit. Interestingly, he enlivens his smiling curve theory with a simile; he says that running a business is like taking an elevator; simply by lowering the cost of production is just like going down and it could go no lower than the basement; in contrast, however, focusing on research and marketing would be like going up to infinite possibilities.
How to make an enterprise grow? When it comes to this growth issue, many ideas would spring out, such as making new products, spending more money on research and developing, lowering the cost or price, creating new marketing channels, enlarging the market share, merging, globalization,…etc. But none of these has answered a very vital question: why would a business grow? Most entrepreneurs seeking growth would only look from the inside, thus often pitting themselves in a fight for getting a bigger market share. However, a seer type of a company leader would not lay too much emphasis on the market share. Instead, he would re-territorialize the market and reap all the growth in a different arena. His guiding principles for growth strategy would include: seeing the enterprise from outside; enlarging the fishing pond by transcending the barriers of the current field and market; creating new market space; and setting up a core leading mechanism. All in all, this also means the arrival of strategic alliance among enterprises.
Challenges for Future Enterprises
he tide of globalization, digitalization, and freer capital flow has led enterprises into an uncertain age in which chances and risks are redefined and management policy becomes over-complicated. Entrepreneurs have two ways to go. One is to become a shaper, to take the initiative in showing people which way to go, to seek thorough innovation in product and service, and consequently, to set new rules of the game. The second is to become an adaptor to follow the new set of rules, but very quickly seizes the opportunities created by the shaper. According to a research by McKinsey (a business counseling institute), in the 20 years from 1995 to 2015, 86% winners would most likely take the shaper role.
Decoding High Growth in Business
Pulitzer winner for news commentaries, William Safire, once indicated in his New York Times column-- “On Everyday Bravery”-- that you should go back to daily obligation as usual and do everything well. Indeed, we all need to go back to the daily fundamentals
A New Dream Comes True
After tearing off the last page of 2004 calendar, a new era of competition has officially arrived. In this new global market where everyone strives to be the survivor, here are some issues that we should be serious about:
Make peace with changes.
Besides manufacturing, enhance abilities in marketing, research, developing, and managing.
Learn to bond quickly in the international society.
Master the Five Ways to become a god of fortune:
(3) bigger and newer sales networking
(4) better management
(5) making your brand international.
MingWei Company is good at the strategy of “Keeping, Breaking, and Distancing.” With Keeping, we stick to what we are good at and make it better professionally. Next, we Break the barriers of business ecology by allying with related business entities to Distance ourselves from our rivals. In 2005, we set up a strategic alliance－”Max Group” to enlarge what we have been working on in reaching out to all parts of the world by adding the idea of “Co-opetition” among our peers. Archimedes has once said--give me a rod long enough, and I can move the world; with strategic alliance, we also expect to make a change genetically in all our alliance partners globe-wise.
Time and tides wait for no man. In this beginning of a new year, our real concern is: in face of the future uncertainty, are you ready?