I read an article on the Internet, "Haier: The Bad Model of Beauty," which considers diversification as a wrong act and attributes Haier's diversified "partial success" to "good luck." With a deep understanding of Haier, the author believes that the author of the article did not really understand the internal factors of Haier's “partial success†and did not grasp the essence of success; and the unsuccessfulness of some industries such as Haier Pharmaceuticals simply boils down to “diversificationâ€. The mistakes, and as evidence of this, are somewhat impetuous.
From the perspective of competitive strategy: recognized corporate competitive strategies have three types: low cost, target agglomeration, and differentiation (innovation). The author of the article advocates Gree's goal agglomeration strategy, but puts Haier and Mei's in the opposite of the target agglomeration. One-sidedly, it is obviously one-sided. As a model for the success of diversity, Haier is precisely the success of the “differentiated†competition strategy. So the key to success is not whether to diversify, but whether to identify and adhere to its own clear competition strategy.
At present, Haier refrigerators, pulsator washing machines, drum washing machines, electric water heaters, freezers, ice bars firmly occupy the top spot in the domestic market, and the market share is far ahead of other competitors; one of the three recognized giants in the air-conditioning industry is Haier. It is an empirical demonstration of Haier's diversification success. Changhong, who has diversified almost simultaneously with Haier, no one has noticed his diversification. Since there are successes and failures in diversification at the same time, this is not just "good luck." So why is Haier’s diversity successful or “partially successful� What depends on the success of diversification?
Top: Whether a diversified product has a unified and integrated platform and organization.
Now Haier's platform gives him any home appliance product. Even if it has never been done before, the annual output can easily achieve several hundred million. why? After several changes, Haier’s platform has been quite strong. Of course, Haier never said that he is never satisfied. At the strategic level of the enterprise, so many products have a unified logistics platform, a capital flow platform, a human resources platform, a service platform, a marketing platform, etc. It is not easy to explain at a glance. We will talk about his 42 industry and trade companies nationwide, which is the sales company. 42 companies cover the entire domestic market and there is no dead end. Each industry and trade company is a platform that undertakes the comprehensive functions of Haier product sales, planning, after-sales, finance, logistics, manpower, etc. There is an image metaphor: the industry and trade company is an airport, and Haier’s products are airlines. It is through the airport that the airlines provide an integrated platform for effective operation and operation. In terms of staffing, there are also regional lines and product lines. The product lines are unified through the regional lines and coordinated operations, so that Haier can "ONEFACE, ONEGOAL" to customers. Haier's products entering each store are not isolated. Through direct sales classes, different products are united through direct sellers to jointly promote “package purchaseâ€, followed by complete sets of delivery, complete sets of installations, and complete sets of services. The product can actually be realized through a sales process, which is also Haier's differentiated marketing means.
If the product is diversified, the platform and organization are also diversified, and all are isolated individuals, then diversity will fail. Through nearly 10 years of development, Haier has experienced the painful process of suffering and has created an integrated and efficient platform and organization, which is one of the keys to Haier's diversified success. And the United States is taking this step.
Second: Whether diversified products have genes that are constantly differentiated and innovated.
Low-cost strategies require scale protection, and diversification is contrary to the goal agglomeration strategy, so diversified companies must continue to innovate. Innovations here include innovation in organizational structure, innovation in business models, innovation in information systems, innovation in channel models, and innovation in product selling points. Here is a brief introduction to the channel model and product selling points. In the channel model, the brand store is not Haier's innovation, but the home appliance industry will be more successful in the store to be Haier. At present, Haier's stores in the country have penetrated into the 1-5 market. In many wealthy villages, Haier's specialty stores can be seen, with more than 10,000 stores.
The income generated by Haier stores for Haier has accounted for half of the domestic market. Here is a comparison of the Haier store with the Gree store. Gree has also opened a number of specialty stores across the country, but most of the specialty stores because of the single product, the peak season is obvious, relying on the store's retail is simply losing money, must be done by engineering or wholesale. Haier's specialty stores are very comprehensive because of refrigerators, air conditioners, color TVs, washing machines, freezers, ice bars, kitchen appliances, electric water heaters, microwave ovens, vacuum cleaners, etc., which are well-received products throughout the year, and can be profitable by retail alone. So it is more lively.
From the product point of view, Haier's anti-electric wall water heater, dual-power washing machine technical standards have been included in the international standard, Haier does not use washing powder washing machine, others shouted "preservation" Haier created "freshing" refrigerator, specifically for storing tea wine fruit The living room ice bar, the eye-opening computer, etc. are all the first of Haier. So far, there are only products and selling points that Haier has in the market. It is these innovative products that guarantee the vitality and success of Haier's diversity.
Third: Whether diversified products have diverse professionals. Haier does have unsuccessful cases in the process of diversification, but this is not the fault of “diversificationâ€, but the lack of a certain aspect of professionals, copying the successful model in other fields. Now Haier has made up for it by asking experts to implement the "1+1+N" team. The two "1"s are an expert, a Haier manager, and the "N" is a team of N people.
When the heartbeat is over, I have written these, just to explain the truth. Diversification itself is not a trap, not a mistake. Diversification is not a model of success. India Tata Group may be a good representative of diversity. Whether the key is the right choice for the competition strategy and the support of a sound system.
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