Subtraction strategy or the last cotton coat in the lighting industry for the winter


LED screen network reported on October 29th at the beginning of the century, just as Huawei's development momentum is very good, Ren Zhengfei, the helm at the helm, published a "Huawei's Winter". This article on the back of the paper is not only a warning to Huawei, but also suitable for the whole IT industry. The subsequent burst of the Internet bubble made this article widely circulated, and winter has surpassed the season and became synonymous with the crisis.
The lighting industry has experienced a turbulent last year and expects to return to the land in 2012. However, the influx of the collapse of the tide has caused the blood-stained tragedy of the lighting industry, and the cold winter has become an indisputable reality in the lighting industry. When the winter comes, whoever has a cotton coat will survive. So where is our coat?
All along, our entrepreneurs, especially private entrepreneurs, have pursued expansion strategies in terms of strategy, or lack of a strategy of subtraction, because companies are often dominated by successful expectations and growing markets. Looking at the lighting industry, the reason why everyone is keen on adding is that they ignore the speculation of subtraction and ignore the insights into their own profit model. This is also the result of the prevailing scale expansion of the lighting industry and the emphasis on competitive strategies. Therefore, in terms of product development, channel development, and marketing models, companies always start from competitors. LED products have become synonymous with the lighting industry overnight, and the result of blind impulses is rumors of gambling, running, losing money, bankruptcy and other scandals.
Today, the industry's cold winter is not only testing the company's short-term strategy and response measures, but also challenging the company's long-term strategy and business thinking. The enterprise did not foresee, without prevention, it would freeze to death in this cold winter. Doing the strategy of subtraction and tying the body, as Ren Zhengfei said, we must emphasize the system that is dominated by process and time-effects. To reduce the unnecessary confirmation, we must reduce the unnecessary and unimportant links in management. Be sure to try to streamline under the conditions of effective monitoring.
The strategic subtraction, that is, the contraction strategy, refers to the strategy of adopting contraction or retreat from the current strategic level and foundation. The contraction of strategy is sometimes a short-term adjustment behavior, such as shrinking the existing products of the company, cutting off certain varieties and even product lines; sometimes it is a way of strategic adjustment, such as shrinking the market in the market or Retreat, abandon certain markets, tighten resource spending, control costs, etc. In the case of the economic crisis, the adoption of strategic subtraction has basically become the norm, and has become a magic weapon that many enterprises have been effective and widely respected.
Doing strategic subtraction does not mean that the company has to succumb to the inaction, nor does it want the company to tighten its belts, but to let the company focus on cultivating, strengthening and exerting its own superiority, doing its best business and doing its best. The advantage of the market, the use of scarce resources in the blade, not to gain more benefits, lost the entire world.
Lao Tzu once said: The song is full, the 枉 is straight, the 洼 is profit, the 敝 is new, the less is, the more confusing. Laozi’s dialectical thinking is that our revelation is that the addition and subtraction of strategy is two aspects of opposition and unity. The reduction will bring about increase, the increase will lead to reduction, if there is no reduction, there will be no increase, and if there is no less, there will be no more.
In the cold winter of the industry, how can enterprises make scientific choices between cost expenditure, resource consumption and market integration, and revenue growth? How to rise to the strategic high-level thinking problem, establish a marketing model that pays attention to market demand and pays attention to competitors, and becomes a enterprise. Strategic considerations. Perhaps the subtraction strategy will be the last coat for the company to cope with the cold winter.
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Editor in charge: Zhao Yan

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