"Cross-border" business model (III): Intensive

2015-03-19 ThorCross-border gossipcross-border gossip

To use the "business model" This topic to find a reason, the enterprise all activities for business profit and survival, and business profits unrelated activities at least not the core of the enterprise.

and "intensive" approximation of the word also: scale effect, monopoly, centralization and so on.

There is a view that the capitalist era of free competition actually shrank in the end of the century and withdrew from the mainstream system of the market . The world's economies have since then been generally into intensive times . What we learn in history and politics is monopoly. But it's actually some sort of intensive.

This intensive embodiment in the enterprise part is: production and operation centralization and large-scale, capital concentration, market monopoly. production scale, capital and market are actually closely related.

Large scale

large-scale production, which means large-scale procurement, which can effectively reduce procurement costs, while maximizing the use of limited investment in output, but also reduce the cost of products, reduce the product means that enterprises can obtain more revenue. Large-scale production means, in addition to the expansion of plant, increase personnel,7x24 hours uninterrupted production, there are homogeneous products and lines. The typical case for this mass production is the Ford Motor Company.

Capital Concentration

the concentration of capital, so that the scale of production continues to be possible, the concentration of capital is not only from the bank borrowing, but also includes the merger of enterprises, the enterprise is no longer a private enterprise, but a limited company. Its common purpose is to increase competitiveness and gain more stable returns by increasing capital and scaling up. From The concentration of the century capital, the formation of the Century , Century, the main model of the company. The concentration of capital also makes it possible to make some super-large products and super-large projects, such as railway construction, communication networks (including submarine networks), aircraft manufacturing, space exploration, nuclear (military, civil) and so on.

Market Monopoly

With a large number of large-scale production of products, you must have a market to convert to money, when a company produces products can meet the needs of the industry's nearly half of the market and effectively meet the needs of the market, a certain degree of monopoly has formed. The formation of monopoly, is other competitive enterprises, if the production of the same product, it is difficult to achieve the size of monopoly enterprises, which also means that costs can not be minimized. Monopoly enterprises allow the existence of other enterprises, in addition to small product differences, so that the market segmentation (this difference is not valued by the monopoly enterprises), or product line buyers to prevent excessive reliance on the monopoly of the diversification of the choice. On the whole, however, the dominant market situation of monopolistic enterprises has not changed. If monopolies want to stifle other vulnerable competitors, just drop the price to enough must not. Monopoly mode is also the development of a product from the early, and then to a number of products, then to a certain industry, and then to an industrial chain, in a gradual deepening.

Centralized management

The expansion of enterprise scale, the challenge of enterprise management is growing, professional managers are born, scientific management, and the integration of information technology into the management, so that enterprises can focus on ultra-large-scale enterprises to operate and management. Early large enterprises appeared on the railroad company. The construction of railways requires a huge amount of manpower and material resources, and in order to achieve effective management of such enterprises, the military system is adopted. This is easy to understand in our country, because our railway is also this model. The railway Company's managers and the military have the same rank and corresponding uniforms, railway staff and this is proud. Many branches of the enterprise, due to limited communication conditions, the early enterprises are to adopt a fully licensed model (before the enterprise, this kind of management model is commonly found in the army, is so-called: "will be outside, military orders are not affected"). Full authorization for the centralized management of enterprises, is absolutely the last resort. So in the information technology, especially the Internet technology development today, large enterprises with information technology can achieve more centralized control than the era of communication. There is an inappropriate example, as is often seen in news and movies, when a drone bombing, or the action of a front-line soldier kills an individual, is ordered directly by the Pentagon. Enterprises can actually agree to achieve the same kind of control, just whether control, completely look at the enterprise to gain control after the benefit of the enterprise to improve the basis (some enterprises will still take the way of decentralization to let employees have more initiative, but this subjective dynamic is under the strict supervision of enterprises to complete).

The new appellation of "intensive"

Enterprise "intensive" business model, has not changed so far. But has been given more glamorous, fashionable nouns, especially in the internet industry. The so-called "internet Platform", "Internet industry chain", is some form of "scale" and "monopoly". and centralized management, with the help of information technology into the "long tail effect." The concentration of capital in the Internet industry has become a "venture capital", that is, VC. The monopoly of competition ---"price reduction" and the combination of capital into a "free" (all free internet-related websites, software, and services are so) and even "subsidies" (such as taxi software, mobile payment) mode. The author does not deny the advanced nature of the Internet (lest it be despised by readers), but it is explained that Internet enterprises have the same characteristics as traditional enterprises in many aspects, we can discuss Internet enterprises alone, but there is no need to completely separate Internet enterprises from traditional enterprises in cognition.

Summarize:

Enterprise intensive operation, for enterprises to bring more than free competition in the small business era more rich and stable profits. Intensive management of enterprises, but also for state capitalism (imperialist countries, socialist countries) paved the way, multinational enterprises have been growing, the size of enterprises even beyond the GDP of small and medium-sized countries, so many small businesses seem remote, but "subversion" is not impossible, which will be discussed in later chapters.

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About "cross-border Talk"

This is a writing, the side of the book, from the continuation of the "Day" "confinement", "serving confinement" inspiration, the content of a number of areas may be related to personal work, life, is an open vision and exchange ideas of the book. Through the serial, on the one hand to see whether the reader is interested, on the other hand, we hope to continue to optimize the reader feedback. Even the reader's God can be answered, giving advice to the reader's name in the chapters of the book. Continuous improvement through interaction. The first edition of the year 6 is expected to be published for 9 months. Strive for this book more than "confinement" become the toilet necessary artifact.

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About Thor:

the author of the cross-border gossip. IT is interested in history, life, enterprise management and development, business model, psychology,IT and so on. People have Ben Four, career underachievement, but grumble, want to chest, but not like resentment of the world, but hope and interested readers to share this 40 years of growth of the experience and knowledge, hope to the reader value (at least can send a boring time).

"Cross-border" business model (III): Intensive