(Abstract) 100 Great Business philosophy: Concept 15: achieving breakthrough Growth

Concept 15 achieving breakthrough Growth

Existing enterprises often strive to achieve the industry's leading growth rate, either because they have already done very well in the industry and are very competitive, or because they insist on the increasing ideology. Some companies are confident that they can compete in the same way as their competitors: minimize risks, maximize resources, and get a satisfactory return. However, there is another way: fundamentally rethink what drives your profit growth, build a better business model, and achieve ground-breaking growth.

Concept

Two professors from the business school, Rita Gunther McGrath and Ian C. macmillan) one of their studies highlights how companies from all walks of life have significantly increased profits (see marketbusters: 40 strategic moves that drive predictional business growth), published by Harvard Business School Press ). The key is to reflect on your company and find new, different, and basic ways to drive profit growth from your competitors. Flexibility, creativity, and understanding of Customer Value are essential.

By making a thorough re-assessment of the factors driving profit, West max (Cemex) has become one of the world's largest cement companies from a small commodity business company in Monterrey, Mexico. In terms of Stock Price, gross profit, and return on assets, it has already surpassed its international rivals Holcim and LaFarge ). West Max has gone through a road from selling cement to delivering cement services in a timely manner. Delivery is a very important thing for cement users: the transportation volume should be appropriate, and the delivery should be made to the right place on time, so that construction workers cannot wait or degrade cement. Using the methods used by Federal Express and ambulances, westmax developed digital technology to manage the locations and specific arrangements for cement delivery in their trucks. Now, westmax uses GPS technology to ensure that ready-made hybrid cement is delivered to the destination within 20 minutes.

Practical application highlights

For West Max, its success is based on the cultural revolution of the company. This requires a kind of practice that surpasses itself to fulfill the commitment, develop a new path to provide services to customers, and ensure efficient operation. With the following techniques, we can make breakthroughs:

§ Give customers new experiences and find new ways to meet their needs-for example, office software developed by Microsoft, whatever you think, it does have an insurmountable advantage in typing.

§ Adjust the products or services provided to customers so that they can reflect their value orientation. There is one way: divide them into three categories based on the product attributes-basic products, different from competitors' products and special products, and compare them with the products provided by your competitors, then we will think about how to develop new advantages, strengthen existing advantages, and make your products more special than others.

§ Improve your performance indicators so that you can check and improve the products or services you provide to your customers.

§ Redefine your business by changing the basic unit requiring customers to pay, or by revising key indicators to measure your sales performance. For example, some lawyers have abandoned the traditional method of charging based on the time they have paid, and began to adopt the concept of "cannot win a lawsuit, no fees.

§ Make full use of the changes in your field to make profits. For example, Amazon (Amazon.com) saw the potential of the Internet and made a new definition of the concept of retail. Similarly, HSBC first discovered the specific banking needs of British Immigrants (for example, sending money abroad) and the situation (there is no bank credit history in the UK), tailored for them to suit their business to meet this market needs.

(Abstract) 100 Great Business philosophy: Concept 15: achieving breakthrough Growth