Top of slope: 5 big slopes of enterprise growth

The development of Chinese enterprises still relies too much on resource development and industrial growth.　　Slope Top article development is stalled, how to do? What is the dilemma of slope top?　　It refers to the development of the enterprise to a certain stage or height after the development of slow or stagnant or even decline in the state or phenomenon. "Each lead 35 years" become the fate of Chinese enterprises. In fact, Chinese enterprises yearn for "long win", but its current development is still based on the development and growth of resources and industries on the basis of the market has undergone qualitative change, the situation will naturally be difficult.　　From the reality, Chinese enterprises have been confronted with the dilemma of business model, the top dilemma of brand growth, the dilemma of professional slope, the dilemma of multiple slopes and the dilemma of international slope top. So why is it that once brilliant companies cannot sustain long wins?　　Facing the plight of the enterprise, in the end how can we continue to be brilliant, successfully climbed the new "hillside"? The growth of 5 big slopes in China the development of Chinese enterprises is still excessively dependent on resource development and industrial growth business model slope top dilemma The key factor involved in the dilemma of business model slope is the competition mode.　　But the competition pattern also involves the competition form and the competition efficiency which brings. The existence of cost advantage is the core performance of competitive form, which involves the state of scale cost and low cost. In the past, the competitiveness of Chinese enterprises mainly came from low cost, but from 2004 to the high cost period, the cost advantage of the enterprise is losing continuously. Wei, executive deputy director of Tsinghua University's China Center for Economic Research, said: "It is estimated that by 2010, Chinese enterprises will not be able to compete by cost advantage, so the future Chinese enterprises from the cost advantage to the technical advantage." Case: Glen is a typical enterprise that suffers from the dilemma of the business model. In the microwave oven market, in the production and sales volume and market share of the industry is the first, with scale and cost advantages, and thus the formation of price advantages. By virtue of the "price knife" invincible, relying on total cost-leading strategy and only five years to become the industry giants. But now the development bottleneck is that there is a scale but not enough returns. How in the world can we keep the competitive advantage and get more benefits?　　The outside world has been difficult to give the answer, but the people are constantly exploring, the attempt from "everyone electricity" cut to light New hope.　　The important characteristic of specialization development road of specialized slope top dilemma is that one industry is mainly focused on long-term management of resources, thus cultivating its core competitiveness mechanism and forming and acquiring corresponding market competitive advantage and market share. But in reality, many enterprises often fall into the confusion of professional development, because when the enterprise developed to a certain stage, in the industry and the field, whether the scale of production or market share are ranked in the forefront, but it is difficult to meet the entrepreneur to make their own enterprise on a larger scale of desire. There are two key points: it is difficult to defeat and eliminate the other major competitors in the industry to form an oligopoly, so that business growth to the size of their expectations; the competitiveness gap with industry cluster rivals is difficult to pull too big, resulting in the profit margin is difficult to meet the enterprise to obtain greaterDevelopment needs.　　As a result, companies are caught in a dilemma. Case: Youngor to the apparel industry, up to the end of 2007, its shirt comprehensive market share of 12.32%, 12 consecutive years in the industry first, the suit comprehensive market share of 13.31%, 7 consecutive years in the industry first. But the problem for Youngor is that the clothing business contributes less and less to the company's profits.　　Youngor is not satisfied with the growth and space of its apparel business. To this end, Youngor has taken measures to: on the one hand, actively promote multi-brand strategy, and large-scale to the industrial chain upstream (textile) and downstream (direct retail network) development, forming a textile city, clothing city and direct retail network, including the industrial chain; On the other hand, actively enter the field of real estate and equity investment, In which real estate income has accounted for half of the company, profits in 2005 over its 50%, while equity investment, 2007 net profit growth of 220%. "If there is no real estate and financial investment, Youngor cannot have a net worth of more than 20 billion yuan," said Li Rucheng, chairman of al-Gore. "Brand growth on the top of the dilemma brand Development has a complete life cycle, including the creation, growth, expansion to decline." However, from the perspective of the brand development of Chinese enterprises, many enterprises have developed bottlenecks in the growth stage, that is, the plight of the top of the slope. From the reality, 1 billion yuan scale has become a key node for many enterprises to grow. One of the important reasons is that the development of enterprises to this scale after a number of factors to make corresponding adjustments, or stagnation or even direct decline, the brand in the market after a period of excitement into the aging state.　　　　For this reason, companies can activate and reshape brands by giving them new connotations and changing marketing strategies.　　After the completion of the brand remodeling, Li-ning company broke through the growth of the top of the slope, become the leader of the domestic sports brand. Case: Li-Ning Sporting Goods Co., Ltd. is a leader in the domestic sports brands, but also the brand growth characteristics of the typical enterprise. It was listed on the main board of the Hong Kong Stock Exchange in 2004. 2003 years ago, Li-Ning company's revenue has not been able to break through 1 billion yuan, experienced rapid expansion after the growth rate plummeted, until the time to step or regress, the brand into the plight of aging, to 2004 years later to find the direction of development, continue to maintain the industry leader. Li-Ning company finally made a breakthrough can be attributed to three points: brand connotation to make adjustments, positioning as a healthy lifestyle communicators and advocates, the adoption of a series of marketing strategies, the road to specialization.　　From this, the completion of the brand of Li-Ning remodeling. The dilemma of diversified slope top in a certain scale of Chinese enterprises, there is a large part of the diversification of the operation. There are two main reasons: first, the Chinese market is not yet fully competitive stage, in many areas to enter the threshold and risk are very limited, the market opportunities are many; second, entrepreneurs have a general mentality, that is, the business "Oriental not bright Western light", which is conducive to reducing the overall survival and development risk. But while diversification looks beautiful, many Chinese companiesCaught in the top of its dilemma, and even suffered a fatal blow to the corporate collapse. Because Chinese enterprises are often in the original core business gradually lose the competitive advantage to intervene in diversified operation, and the diversification of strategic elements of the driving is not adept, the business relationship between the difference, and the business mix structure is not reasonable, in the internal management capacity of weak enterprises, diversification will also make its original limited strategic resources and management efforts to disperse,　　resulting in the small scale of business and low competitive position, the core business is difficult to help promote the emerging business competitiveness and profitability of the improvement of the level. The internationalization of Chinese enterprises is an inevitable trend, especially after China's entry into WTO in 2001, the internationalization of Chinese enterprises has accelerated further.　　At present, some enterprises can be internationalized development, but most of the enterprises, including some domestic first-class enterprise internationalization road are difficult, involuntarily caught in the top of the slope dilemma. The key reason is that Chinese enterprises in the internationalization of the strategy is deeply immersed in three myths: first, the route problem, is the adoption of "first difficult before easy" or "first easy after difficult" route, that is, to open up the developed countries or developing markets? In fact, the main business should be depending on their own competitive strength. Second, the internationalization of talent problems, is their own training or airborne? The general ambivalence of Chinese enterprises is that it is difficult for them to take responsibility for their own training, and the airborne is not at ease. Third, mergers and acquisitions of the problem, is the acquisition of asset-type or debt-type? Chinese companies are blind, even if they have the ability to digest. Therefore, we should distinguish the object, do the evaluation, choose a good way and opportunity, and focus on cultural integration and risk prevention to avoid falling into the trap.