Cause of failure for a successful enterprise-Leo jianshu 70

Source: Internet
Author: User

The key theme of this book is that the management methods that promote enterprises to become leading enterprises in the mainstream market are also the management that leads them to miss the development opportunities brought about by destructive technologies. 
In other words, a well-managed enterprise may fail because it is well-managed and the definition of "good management" may be changing. In the future, it will be "improper management" to listen to consumers' opinions, invest heavily in the production of products recognized by consumers, and conduct market analysis carefully ". Because the distribution of enterprise resources depends on consumers and investors, both of which have their own limitations. Enterprises will not generate relevant demands in consumption. Investment will develop destructive technologies. Although such technologies represent the future, they can only produce relatively low profits. The second reason is that it is impossible to analyze non-existing markets. Many unique innovations are groundbreaking and lead the future market. However, enterprises often miss the opportunity because they cannot analyze non-existent markets. In addition, there are also factors such as the company's own culture and process. 
Of course, this book also provides the answer to the question, and introduces destructive technologies in several special ways to maintain its own advantages, such as acquiring and setting up an independent door. For example, HP's choice in Inkjet Printing and laser printer is commendable (p116 ). The size of the inkjet printer is small, the price is low, the audience is wide, and the print quality is normal. At that time, it seems impossible to replace the laser printer. Laser printers are large in size, high in price, good in quality, and lucrative. In 1980s, HP did not choose to produce only one of them, but set up two independent departments to compete with each other-today it seems that this strategy ensures HP's position in the market. 
 
The book also proposes three elements that explain the framework of enterprise capabilities: resources, processes, and values. Most of the causes of success and failure can be found. The avid that failed the process was a flash in the 1993 s. Although the product (family data editing system) was sought after by consumers, the company lacked effective processes for continuous innovation, it also fails to control product quality, delivery, and the future, and eventually leads to a steep decline in business. The Digital Equipment Company (DEC), which defeated the value, was a very successful micro-computer manufacturer in 1980s. Its core capability was to make computers. The company's principle is that "the profit cannot be less than 40%" because the personal computer (PC) has a low profit and does not conform to the company's values, because the investment in this aspect is very small. So when PC emerged, Dec disappeared from people's perspective. 
Companies that have achieved success need to be more vigilant to have the opportunity to maintain a competitive advantage. 
The writing structure of the book "total score" fully considers the reader's reading experience, and provides a wide range of procedures and examples. It is worth reading on the whole. 

 

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