The growth of Chinese hi-tech enterprises from Intel Entrepreneurship

Feng, deputy director of the Audit and supervision Department of Shenzhen Stock Exchange in the upcoming launch of the Gem in China, research on Nasdaq-listed High-tech companies in the United States of China's High-tech enterprises in the listing and development of a very important significance. Intel Corporation is an outstanding representative of many NAS-DAQ listed companies, it was founded by technical personnel, began to be very small, completely rely on their own strength, and gradually grow into world-class giant companies.　　The following is the beginning of Intel's growth process, analysis of its successful experience and the development of High-tech enterprises in China. Intel Company's first stage of growth, from 1968 to 1971, from the establishment to the listing. Intel Corporation was founded in Silicon Valley on July 16, 1968, with a share capital of 750,000 shares, 3 million U.S. dollars (the same below), mainly engaged in semiconductor research and manufacturing, more than 30 employees, the creation of the year loss of 500,000 yuan. 1969, the company launched Semiconductor chip 1101, but can not compete with the market mainstream products, continue to lose money. 1970 The company developed a third product 1103 dynamic random memory, the realization of the main revenue of 4.24 million yuan, but loss of 970,000 yuan.　　After nearly four years of efforts, to 1971 the company realized the first profit, that year, the company revenue of 9.41 million yuan, profit of 1.05 million yuan, the profits from the license of the Canadian Bell Company to produce 1103 of the agreement 1.43 million yuan to achieve, when Intel Corporation in the United States on Nasdaq successfully listed. The second stage, from 1972 to 1980, achieved 1103 of the large-scale production, become a semiconductor chip business. The production process of the chip product is very complex, the key to the success of the enterprise is how to convert the laboratory products into the product. The company from the technology, equipment and process three levels of 1103 dynamic random memory from the concept into reality, especially through strict management and replication, successfully carried out large-scale production. 1972 company revenue of 23 million yuan, profit of 3.1 million yuan, to 1980, the company income of 854.6 million yuan, a profit of 96.7 million yuan.　　Throughout the 70 's, the company's annual sales and profit growth rates were 66% and 65% respectively. Phase III, from 1981 to 1989, from the licensing of other enterprises to produce the exclusive supply of micro-processing chips. Intel continues to improve its production capacity to ensure that the company's products stabilize the supply market, and through the 1982 alliance with IBM, established the company's micro-processing chips into the mainstream products. When all these conditions were ripe, the company launched its exclusive 386 and was successful.　　By 1989, the company realized revenue of 3.127 billion yuan, the profit of 392 million yuan, respectively, than 1980 growth of 3.66 and 4.05 times times. Phase IV, 1990 to 2005, the company is committed to brand building. 1990 Intel Corporation is a very good semiconductor enterprise, in the industry has a very high visibility, but the company's chip as a microprocessor, installed in the computer, does notFacing consumers directly, ordinary consumers do not care about the performance difference between 486, 386 and 286. To that end, Intel has started to build its brand and approach consumers directly, through the Intel Iide and the naming of microprocessors as the Pentium series. By 2005, the company earned 38.826 billion yuan, earning 8.664 billion yuan.　　were 12.42 times and 22.1 times times higher than in 1989. The revelation of Intel's successful experience first of all, has a good core management team. Any business that wants to succeed should have a core management team. Facing the ever-changing new technology, the core management team of High-tech Enterprises must have two conditions.　　That is, the management team should have the relevant industry experience, team members should be able to cooperate and complement each other, especially the need to understand both technical and management of the integrated staff. Intel's management team is mainly Noyce, Moore and Grove, who founded Intel Corporation. Among them Noyce is the silicon substrate integrated circuit inventor, Moore proposed Moore's Law, Grove in the Bai Li University part-time period, has compiled "the semiconductor equipment physics and the technology" classics textbook, all has the semiconductor profession rich experience. In Intel's management team, Noyce is good at external communication, Moore is good at thinking, and Grove is good at management, the three of them form a good complementary relationship.　　High-tech from concept to product, inseparable from management, Intel's success is mainly grove management capabilities. Second, focus on core products and focus on a profit model. During Intel's development, there have been two major business adjustments, one is the 1977 closed the production of electronic watches factory "Microma", mainly because electronic watches belong to consumer goods, and the company production chip business model is inconsistent, the company can not operate "Microma" in the profit. Since then, Intel has focused on the semiconductor industry and has never been involved in the consumer goods industry. Another was the beginning of the 80 's, the company's storage chips are facing competition from Japanese products, the market share continues to decline, the storage chip has been unable to provide profits for the company, in this context, the company in 1985 to shut down the production of memory chips, Intel company focused only on micro-processing chip products,　　and become the world leader in chip industry. All semiconductor companies in Japan provide all the products from transistors to micro-processing chips. As all Japanese companies provide the same products, customers can only choose the price, which inevitably damages the company's profits, the Japanese semiconductor enterprises gradually become no key products, characteristics of the company, its competitive advantage is gradually lost. Some High-tech enterprises in our country also have the common problems of Japanese enterprises, just achieved some achievements, began to diversify investment, one-sided pursuit of enterprise scale, do not pay attention to the quality of enterprise development.　　If China's High-tech enterprises do not pay attention to this, will repeat the old road of Japanese enterprises. Third, grasps the company and the industry development the leading power. The first of the businessThe premise is to be able to control the enterprise, when Intel Corporation was established, Noyce and Moore total hold 65% of Intel's shares, while Grove did not have the shares, only is employed by Intel Company's management personnel. This kind of ownership structure, not only avoids the business enterprise to be subjected to others, but also avoids the owner to manage the enterprise by the brutal behavior to destroy an enterprise.　　The second is to control the operation of the company, Intel Corporation was only one of the many chip suppliers before 1980, the company's operation is subject to system manufacturers, through the alliance with IBM, the company produced micro-processing chips gradually become the industry's mainstream finished products, and eventually become the industry standards. Why China's High-tech enterprises do not have the birth of world-class enterprises, although with the development of High-tech enterprises in China late, but with entrepreneurs do not pay attention to patents, industry standards and other intellectual property rights also have a great relationship.　　China's High-tech enterprises to develop, we must solve two problems, one is to improve corporate governance, the second is to pay attention to patent and industry standards and other intellectual property rights. Four, establish the company's brand. High-tech enterprises to a certain stage to build their own brand, imagine, if not from the beginning of the 1990 commitment to brand building, Intel Corporation can not achieve today's achievements, a brand to establish the credibility of the consumer's heart, it eliminates the search costs, the establishment of the company and the buyer's bond. Microprocessor as a part of the computer, its brand set more difficult than the general consumer goods, Intel Company's brand experience is worthy of China's High-tech enterprises for reference.