How do traditional industries respond to the fiercely competitive market?
How do traditional industries respond to the fiercely competitive market? The earth is constantly spinning and the world is changing rapidly. Every enterprise will encounter various challenges in the process of development. Below I will share how traditional industries respond to the fiercely competitive market. Let’s take a look. How do traditional industries respond to the fiercely competitive market? 1
Looking at China's market changes over the years, its rapid development and fierce competition have caught all walks of life off guard. Every year, many companies disappear due to their inability to adapt to market changes, and at the same time, many emerging companies rise. This phenomenon is still visible in the transformation of my country's small and medium-sized enterprises.
Affected by the epidemic, in just a few months since the beginning of 2020, most industries in our country have experienced changes such as rising prices, scarce customers, poor sales, and economic recession. Especially the tourism and catering industries , construction, and chemical industries have been most affected. Some small and medium-sized enterprises have suspended production and reduced production, and some even cannot survive and have directly closed down.
In the face of the ever-changing market, many small and medium-sized enterprises are crying out and spending day after day complaining. They seem to think that the company's business cannot be carried out, performance has declined, and there is no profit. Yes, this attitude of not seeking development and waiting for death will only accelerate the decline of enterprises.
The earth is constantly spinning and the world is changing rapidly. Every enterprise will encounter various challenges in the process of development. Only by constantly changing and innovating with the development of the market can we find suitable enterprises. Only by upgrading and optimizing methods and strategies, seizing opportunities, and facing challenges head-on can we survive in this ever-changing market. So how to correctly find the way to survive? First, let’s take a look at the three major pain points that hinder the sustainable development of today’s small and medium-sized enterprises.
Pain point 1: The marketing concept is too conservative
The marketing strategy of an enterprise plays a decisive role in the development of the enterprise itself. Some small and medium-sized enterprises are unable to abandon outdated business concepts, which greatly limits the development of the enterprise. As we all know, now is an era of rapid development of the Internet. Substituting Internet marketing for traditional offline marketing concepts is a necessary way for enterprises to effectively develop. To put it simply, it is low cost, high traffic, relying on Internet big data to accurately connect with target customers, so that products can gain high traffic exposure.
Pain point 2: The market competition is too fierce
At present, there are many types of products in various industries. The emergence of competing products has led to increasingly fierce competition among enterprises, and the consumer market has been completely occupied by consumers. Therefore, companies must increase innovation and promotion of their core products in the new marketing environment to cater to customer needs, so that they can survive and develop in the fierce market competition.
Pain point 3: Brand exposure is too low
There are countless brands in the market at this stage, but there may not be many that are well-known and long-term choices, and the brand concept cannot be understood. . So how do you stand out among many brands and be remembered by people? In addition to offline sales, continuous online exposure is also very important. Companies must establish exclusive corporate logos, exclusive plaque certificates, and conduct media promotions through online promotion models to increase brand exposure.
For enterprises, competition is everywhere, but the environment is different. Many companies think they have no customers or orders, but in fact they lack customer acquisition channels. The emergence of in-depth operations has solved problems for the majority of small and medium-sized enterprises. How do traditional industries respond to the fiercely competitive market 2
Question 1: In the face of the current fierce market competition, how can companies improve their profitability?
Question: The current export trade situation is severe. While costs are rising, profits are being compressed. If traditional enterprises want to survive in the fiercely competitive market environment, what kind of management methods should they use to enhance their competitiveness and profitability? Ability
Liu Chengyuan: Business management simply means these four words - increase revenue and reduce expenditure. Enterprises at different stages have to pay different prices. Don't blindly increase revenue or reduce expenditure. You must first make sure that your enterprise is in the current position. Should we increase revenue or reduce expenditure at this stage?
First, we need to analyze the profitability of the company, which is the question of "where does the profit come from?" Many business owners I have met have never thought about this matter. The only thing they think about every day is "how to buy low and sell high." If they keep doing this, it is likely to get worse. So, how do we analyze the profitability of a company? Analyze by mastering six data - sales quantity, sales price, quantity of purchased materials, purchase price, cost reduction, and strategic expenditure. Analyze these six data to get the strategic focus, and you will have a clearer idea of ??what is most important to the company at the moment, whether it is to increase revenue or reduce expenditure.
Qian Min: Let me share my personal experience from the perspective of open source. First of all, in the early days of our company, we made a lot of investments. We have a global presence, have registered our own brands in more than 80 countries, and have submitted many patents in the United States and the European Union, building a defense line for our own intellectual property rights. In order to develop new products, we have recruited many multi-talented talents, who are required to not only be good at English but also have a good understanding of product technology. In this way, he will appear very professional when communicating with customers from different countries on technology, and customers will also feel the professionalism of the company behind him. This is also the "open source" we do for the company to go global.
Shen Hua: We have some experience in reducing resources, mainly to improve the efficiency of resource use and to improve the output of each resource of the company. For example, the output rate of each kilowatt hour of electricity must be increased, and the output rate of each ton of water must be increased... We have to study how to improve the efficiency of resource project use every day. If manufacturing companies cannot do these things well, they will be eliminated by the market.
Question 2: Should traditional enterprises facing transformation and upgrading choose "disruptive" innovation or "improvement" innovation?
Question: In the context of the new era, the speed of product upgrading is getting faster and faster. I find that many companies fail because they lack innovative soil and ideas. What is the problem for traditional companies? How to carry out effective innovation?
Liu Chengyuan: There are two major categories of innovation, one is "disruptive" innovation and the other is "improvement" innovation. From the perspective of "disruptive" innovation, in order to create "cool" products, it is necessary to invest heavily in product research and development. The innovative representative of this category is Apple. This kind of "disruptive" innovation has high risks because product research and development requires high investment, but its output may not be accepted in the market. However, if accepted, the results will be very good and often lead the industry trend. Another type of "improvement" innovation is similar to Procter & Gamble. They conduct a large amount of market research before product development, and then innovate. According to the different nature and stages of the enterprise, relative innovation is the most important. At present, for most small and medium-sized enterprises, you can try the latter, which will be safer.
Shen Hua: For a company like us, we do more "improvement" innovation than "disruptive" innovation. Where does the power for innovation come from? The survey found that most innovation comes from consumers, that is, the market. Therefore, I believe that good innovation is inseparable from market research. I suggest that companies listen more to market feedback. For example, during the transaction process, you should not only pay attention to taking orders, but also figure out why other customers do not place orders with you. This reason is very important. You can know the potential needs of consumers and market intelligence, so that your innovation can be more grounded and accepted by more people.
Qian Min: Our experience is more about “micro-innovation” and making some product improvements based on user experience. We will not make innovations that end up with no results, because the risk is too great. Basically, we follow the footsteps of the giants, study what they have done, and then make improvements. We are not simply copying, but understanding and learning from the giants’ concepts, and then improving the experience. On this basis, sometimes our experience will be better, the functions will be richer, and the operation will be relatively simpler.