Grasp the market economy "What has happened"

Source: Internet
Author: User
I recently read the Drucker log book by Peter Drucker, the father of modern management science. The title of the second page in January 2 is "grasp the future ". Master Peter pointed out in the log: "for managers, their more important job is to grasp the changes that have taken place. In the social, economic, and political fields, managers are facing a huge challenge: to gain insight into the changes that have taken place and seize opportunities. The key is to grasp the future that has already occurred '......"

After the 21st century, China's market economy began a new stage. The economy in this new stage has different ideas from different perspectives, such as information economy, knowledge economy, Net Economy, and abundant economy. We can collectively call it the new economy. How is the new economy developed and its development trend? Mr. Jiang qiping, informatization Research Center of the Chinese Emy of Social Sciences, has his own unique insights. In his article "New Economy endogenous theory", he pointed out that, according to the mainstream western economics, rural areas are self-sufficiency between producers and consumers, and industrialization is the division of labor between producers and consumers, therefore, it is easy to infer that informatization is the integration of producers and consumers. However, Mr. Jiang believes that Adam. smith's definition of industrialization is a flawed "one-point theory". He is only exposed to the basic contradiction of industrialization, that is, the scale economy, while the arguments of the economic historian Chandler are comprehensive, he proposed the industrialization "two-point theory", namely, economies of scale and economies of scope. Throughout the industrialization period, economies of scale are in a dominant position under the traditional productive forces, while economies of scope are in a secondary position. After entering the information age, the information technology revolution has helped the scope economy to become the dominant aspect of the contradiction. Therefore, the economy has also undergone a qualitative change from the old to the new. Mr. Jiang also pointed out that "coordination is only the other side of the division of labor and there is nothing new". Many people only see that the division of labor continues to deepen and develop under the new economy, while ignoring the more essential aspect of business integration and industrial integration brought about by technological integration, the key is to see the trend of structure changes.

Economies of scale are the economies of large quantities and few varieties, and the economies dominated by division of labor. The range economy is the economy of small batches and multiple varieties, and is the economy dominated by integration. Why is it that information technology will help the local economy gradually become a dominant contradiction? First, let's look at an instance. We all know that when we buy clothes, we often encounter such a situation. The collar is suitable, the sleeves may be inappropriate, or the length of fat and thin is not suitable. Although the manufacturer has produced a variety of products, it still cannot meet the needs of many consumers. American Levi's brand jeans are globally recognized as famous brand products. They are active advocates and implementers of mass customization. manufacturers can "tailor their clothes" according to the shape of consumers ", all parameters are designed according to the actual situation of the consumer, and then assembled with different combinations of "raw materials ". Due to the large batch size, each part of raw materials is produced on a large scale, and the increased workload is only assembly. The increase in this part of the cost can be compensated by raising the price, because users are willing to pay an additional 10% of the cost to get products specifically customized for them, including the name of the embroidered user, become a personalized product. This kind of Jeans production method, although the raw materials are large quantities, but the final product is multi-variety or even personalized, It is a range of economic. As Mr. Jiang pointed out in his recent article "varieties are important": "The fewer products, the lower the cost, the more traditional skills; in the Internet era, the more products, the lower the cost, is a new skill. Obviously, the more products, the less one person manages after the division of labor, the more products. On the contrary, the less and more products each person takes into account, which tests the level of coordination, rather than the level of labor division. Integration, collaboration, and process reengineering in it are all used to do this ." If such a economies of the scope do not support information technology, the cost of both parties will increase much, and it will become an insurmountable obstacle.

From the above examples, we can also understand why the range economy is a converged economy. The integration of producers and consumers is a notable feature. In Wikipedia, the concept of "producer" is also mentioned and listed as one of the seven cooperative economic modes. This book also provides more examples for consumers to participate in the production of products, especially the typical example of BMW, which released a digital design toolkit on its website, to encourage interested customers to design their cars. Thousands of customers responded to the Plan and shared their ideas with company engineers. Many of them turned into valuable ideas. These economic phenomena already exist in many economically developed countries. What kind of inspiration will Chinese enterprises and their managers grasp the "future" of the market economy?

Since the reform and opening up of China's economy, it has only been more than 10 years since the end of the shortage economy era. At the same time, some large enterprises stand out and use inexpensive popular products to meet the needs of satisfied consumers, and some have become well-known brands in the home region. However, with the development of the economy, people gradually enter a well-off or wealthy standard of living. A large number of petty and middle-class consumers have a strong demand for niche products, however, enterprises that provide products or services are still in the popular consumption stage. The marketing concepts and models have not yet changed from the popular consumption age to the niche Consumption Age, not to mention the arrival of the era of personalized consumption. Therefore, economies of scale are still the goals pursued by many enterprises. Of course, in the daily consumer goods industry with very few product differences, in the household appliances and automobiles industries with relatively concentrated user groups, economies of scale are still the main mode of enterprise profit. However, for most SMEs, it is still difficult to compete with multinational corporations and domestic large enterprises in economies of scale in many aspects. Therefore, we should take a closer look at the trend, develop strengths and circumvent weaknesses, and give full play to regional and flexible advantages, it is better to solve the contradiction between social production and niche and personalized needs to meet the general needs and special needs of local or niche consumers. At the same time, from the overall trend, after the climax of the homogeneous material demand development stage, people pay more attention to "selection diversity". The range economy of Multiple Varieties means that there is a choice, having a choice means having freedom. We should look at and grasp the economic development with the pursuit of freedom.

In dealing with the relationship between enterprises and consumers, the range economy dominated by integration and the above examples will also bring us profound inspiration. At present, there are still some problems in China's market, such as low transparency, information asymmetry, and immature consumers. Most consumers still have insufficient knowledge and information to choose products, therefore, many enterprises and their management and marketing personnel still set consumers as ignorant and emotional groups, a marketing method that is considered by marketing theories in developed countries to be pediatrics or even fun, that is to say, many enterprises are happy to carry out carpet-style advertising bombing in the mass media, because there are still some results in the domestic market. We do not know that with the growth of petty capital and middle-class consumer groups and the increasing popularity of Internet applications, consumers' consumption behaviors will become increasingly rational. An enterprise's strategy for consumers to make emotional consumption will be nothing more than yesterday. Today, we should treat consumers as friends of rational consumption, and tomorrow we should regard consumers as the target of cooperation or partners of enterprises. The author believes that when the new economy wave emerges, this should also be a very important aspect for enterprise managers to "gain insight into the changes and seize the opportunities!

Contact Us

The content source of this page is from Internet, which doesn't represent Alibaba Cloud's opinion; products and services mentioned on that page don't have any relationship with Alibaba Cloud. If the content of the page makes you feel confusing, please write us an email, we will handle the problem within 5 days after receiving your email.

If you find any instances of plagiarism from the community, please send an email to: info-contact@alibabacloud.com and provide relevant evidence. A staff member will contact you within 5 working days.

A Free Trial That Lets You Build Big!

Start building with 50+ products and up to 12 months usage for Elastic Compute Service

  • Sales Support

    1 on 1 presale consultation

  • After-Sales Support

    24/7 Technical Support 6 Free Tickets per Quarter Faster Response

  • Alibaba Cloud offers highly flexible support services tailored to meet your exact needs.