In 1990s, a toothpaste factory in the north of China introduced the very popular "Molar Toothpaste". The factory started small batch production on 1997, which is very popular because it suits the tastes of consumers. It soon became one of several famous brands of toothpaste, and buyers kept coming to you.
By this time, the factory should have seized the opportunity to expand production and fully occupy the market. Unfortunately, due to frequent personnel transfer and mutual restraint of leading bodies, the factory did not make a decision to expand production until 1998.
During this period, a new variety of toothpaste from other manufacturers, medical toothpaste, has sprung up and poured into the market. These toothpastes contain Chinese herbal ingredients, which give people a refreshing feeling in packaging and appearance, so they quickly gained a foothold in the market. Since then, these toothpastes have gradually expanded their sales and began to compete with "Ya Rui" brand toothpaste. However, because of the limited output, it is difficult to fight in time, so we keep losing ground and watch other people's business grow bigger and louder. During the period of 1999, the toothpaste of "Liya Lingpai" was unsalable and the factory was in jeopardy. The leaders of the company decided to recapture the market by means of low price and restore the vitality of the enterprise.
However, something unexpected happened and the price of raw materials began to soar. Although the factory is an enterprise owned by the whole people, and the raw materials are supported by blood transfusion from brother enterprises under the control of the state, the state does not care about the unplanned supply needed to expand production. In this case, if the toothpaste factory wants to expand production, it must pay high raw material prices, and the cost of toothpaste is bound to increase. By the end of the same year, toothpaste could only be sold at a loss, and other enterprises also cut prices one after another, and enterprises fell into the quagmire of price war. After less than a year, we had to stop production and business, and the toothpaste of "Fang Ya Ling Pai" disappeared from now on.
Generally speaking, an enterprise's products go through four stages: trial production, mass production, putting into the market and converting into money. If an enterprise invests money to buy raw materials, it can enter the next stage, which is called expanded reproduction. Relatively speaking, the second stage is much simpler than the first stage, which saves the cost of product trial production and market development, so the larger the scale, the higher the profit. However, in the last example, the toothpaste factory did not make the decision of mass production and did not expand the market scale, so it lost the opportunity to dominate the market because it did not act in accordance with this economic law. If the enterprise only produces according to the original scale, it will inevitably face backward technology and aging equipment, and will be caught up and replaced by new competitors sooner or later.
Numerous examples in the market show that the "leader" for a period of time may be replaced soon, so "other sheep" peep at its position and always want to squeeze into the position of "head sheep". When the "head sheep" finally trudged through the thorns, it was exhausted and scarred. This is the most common time for the replacement of old and new products.
Contrary to making decisions out of thin air, it is well-founded, knowing ourselves and avoiding weaknesses, and the final decision can give full play to the advantages of enterprises. Such a decision can only be successful and cannot be failed. Finding decisions in the market is the way to win!
When making market decisions, corporate executives make their companies the "first person" in the market.
1935, two businessmen in Prague, Czech Republic made a patented ballpoint pen called "Rol-pen", and its principle is roughly the same as that of a pen. The ink was pressed on a ball with a small piston inside, but the sales volume was extremely poor. Later, when the Nazis swept the Czech Republic, the two businessmen disappeared.
Four years later, a Hungarian named Boluo, a medical student, hypnotist, journalist, sculptor and inventor, improved this pen and obtained a patent in Paris.
After the war broke out, Boluo wisely moved to Argentina, where he made and sold ballpoint pens on a small scale. 1June, 945, American Shuli Pen Company has obtained the patent right of American Burro ballpoint pen, and is busy transforming it in order to launch a large-scale marketing offensive in the United States. That is, in the same month of the same year, an unhappy 53-year-old American was traveling in Argentina, and he had to come here for his own career. For most of his life, the American has been struggling with failure and frustration. Until the middle of the year, I still have nothing to do and I am unknown.
Once, when he was negotiating with a Gu Rong man, a strange pen (he didn't know it was a ballpoint pen) in the other person's hand caught his interest. After some deliberation, he understood the magic of this pen and made up his mind to own it, manufacture it, sell it, promote it, make his own brand and become a leader in this industry. Although he knows that people in America don't know yet, he is sure that this is something that everyone will buy at least once, and it is an excellent gift. The most attractive thing about this product is its low cost and high profit, which will surely sweep across the United States.
After returning to Chicago, his confidence and enthusiasm were hit. Two ruthless facts are in front of him, one is the powerful writing pen company, and the other is Boluo's patent monopoly on this pen. Especially the latter, almost made him feel desperate.
But he refused to give up easily and found an engineer as a companion. Together, they explored ways to bypass the patent right of writing Luo Libo. After studying day and night, we finally found a method that is not restricted by the patent right to write Luo Libo, and invented a ballpoint pen that uses gravity to transport ink.
One rainy night, he was sitting in a bar, throwing a new pen and scribbling on a wet newspaper. He suddenly realized that his ballpoint pen could write on wet paper, which a pen could never do.
He rushed back to his shop in the rain, filled a basin of water, put a piece of paper at the bottom of the basin, held a pen in his hand, and then drew a clear line on the paper. Then the great slogan of his pen was born from here: "It can write in water!" " "A bright future has emerged.
At first, he only had a sample pen. He can only sell it everywhere with him. After hitting a wall everywhere, he knocked on the door of Jin Beier Department Store, showing off his big hand in front of those boring and arrogant executives. They were so happy that they ordered 2500 pieces at once. On the first day when this new pen went on the market, the department store posted an advertisement: "This pen can write in water." This slogan later proved to be worth millions of dollars. Many people think this is an interesting story passed down from mouth to mouth.
1945101On October 29th, the business hall of Jin Beier Company opened. The salesman was frightened by the sight before him, and thousands of customers crowded at the gate, scrambling to buy this magical thing that can write in water. The scene at that time was almost like a riot, and the department store was forced to call 50 police officers to maintain the customers who rushed into the store to buy.
After the victory of World War I, he hired several famous barristers with high salaries and sued two large pen-making companies in the federal court, including the pen-making company with the patent right of "writing Luo Libo". This is a lawsuit that seems to have no chance of winning. He unreasonably accused the two companies of violating the anti-monopoly law and deliberately prevented the distribution of his pens until their own "outdated" pens were removed and their ballpoint pens were manufactured, demanding them to pay compensation of 6.5438 million US dollars.
The two companies quickly filed counterclaims. Although the lawsuit was in full swing and published in major newspapers, it still came to nothing. They also saw through his trick, but if they want to crush him, they feel willing but powerless. Their production scale is huge, the replacement of machines and tools, the replacement of personnel and the arrangement of production can not be started soon, and the demand for salary increase by trade unions should also be considered. In short, in their view, the giant in handcuffs and shackles is dealing with a crafty clown. Although he is angry, it is difficult to subdue his opponent.
1March, 946, he happily bought a sealed bomber, hired two pilots and engineers with rich wartime experience, and learned to fly. The plane took off from la guardia airport, new york, and crossed Europe, Asia and the Pacific, lasting 78 hours and 55 minutes. The round-the-world flight show cost175,000 US dollars, breaking the world record of Howard and Hughes flying around the world for 9 1 hour 14 minutes. Everyone thinks it's worth it, including Time magazine.
10 The day after he climbed out of the plane, a group of people cheered him. All the newspapers in new york advertise: "Here we come! Renault ink cartridge pen! "
Needless to say, sales soared.
What do you think of this story? Is it the history of an aspirant or the hapless pen company that wrote Li Yibo?
By the way, he is "Renault" and "Renault shell" is the name of the bomber Renault used to fly around the world.
Analyzing the above cases with a calm and scientific eye, it should be easy to see that the most effective way to ensure the success of a decision is to give full play to one's own advantages. If Renault goes step by step, it is not difficult to imagine that he will fight a positional war with Shuli Pen Company in order to compete for the market and be defeated by a powerful opponent. Renault borrowed the products developed by Shili Pen Company and saved a lot of money. And put all his energy into the marketing promotion that can give full play to his talents, and the result was an instant hit, which made him unique in the ballpoint pen market.
On the other hand, for some reason, Sherry Pen Company never responded to Renault's provocative behavior in time. If it is understandable that Renault is still secretly trying to squeeze into the ballpoint pen market, it is incredible that Renault will still hold its ground when it makes a big promotion advertisement and launches an offensive with great fanfare. It can be said that the company is watching others seize its own territory with open eyes.
Another revelation of this case is how to walk in front of others. The situation in the shopping mall is complex and changing rapidly, and the opponents are like a forest. Generally speaking, enterprises are willing to be the first person in the market, which is acceptable to consumers. But that doesn't mean that once you fall behind, you can never turn over. As long as the managers and bosses of enterprises are not impatient, sum up their experience seriously and prescribe the right medicine, they are likely to catch up later.
First of all, market pioneers may not be optimistic, because they often have to cut through the thorns, otherwise they will be black and blue. They will invest huge sums of money to develop new products and explore the consumer market, and the developed market cannot be monopolized by one or two enterprises. And successors don't have to pay such a high price. In this way, after the products of latecomers enter the market, they will definitely occupy the advantage of product cost because of their low cost. Unless the faucet can enjoy government subsidies, it is difficult to reduce the product cost in a short time.
Renault only used the product cost, each cost was only 0.8 USD, and the market price was 65,438 USD +02.5 USD. I'm afraid this huge profit is beyond the reach of Shili Pen Company.
Secondly, market pioneers often provide a lesson to successors. If the successors sum up the experience and lessons in time, they can avoid the same loss and improve the products to some extent.
It is on the "pen that can write in water" that Renault surpassed the pen-making company and captured the psychology of thousands of consumers, thus quickly opening up the market and making people flock to it. Shuli company was not brilliant in marketing promotion, so it was suppressed by Renault until it lost all its advantages and was forced to withdraw from the ballpoint pen market.
Market decision-making is very important, but some elements must be mastered:
(1) Think about possible accidents in advance.
Always consider every possible accident in advance, which will ruin all your plans. Whether you can make a correct and timely decision depends on your accurate assessment of the situation. Use the question I told you before: "What if?" In this way, you will force yourself to consider every possibility that may make things worse. Managers or receptionists who lack foresight and underestimate the factors of failure often fail.
(2) Ask your key subordinates for advice.
Before you make a final decision and give an order, you'd better ask for the opinions of your subordinates, listen to their views on your decision and learn from their experiences and ideas.
After you listen to their opinions, the consultation stage will come to an end, and then you can announce your final decision. From now on, you have the right to expect your subordinates to fully support and carry out your decisions and obey your orders wholeheartedly.
(3) Know when it is most appropriate to announce your decision.
It is very important to announce your decision at an appropriate time. You must let the managers under your leadership have sufficient mental preparation and time arrangement, and don't let them be caught off guard, so that they won't have enough time to make their own plans, make their own decisions, and issue necessary orders to carry out your overall decision. Most importantly, you should not announce your plans and orders to your subordinates, which will make them embarrassed and passive. What they say to their subordinates is their business, and you can't interfere.
(4) Encourage subordinates to constantly assess the situation and make plans.
No situation can be static, mistakes may be made at any time, and accidents may occur at any time. Encourage your subordinates to make their own evaluation of the current situation, and when there are mistakes or accidents, make plans to adapt to the new situation in time.
(5) Let people fully understand the situation and keep pace with the times.
When you make a correct and timely decision, it is a waste of your energy and time if you can't let all the people who should know. You must make sure that everyone knows the content and progress of your decision. If you can't do this, you will definitely make a big mistake. If you make a big mistake by forgetting to tell a key person about your decision and implementation plan, who should bear the responsibility? Errors caused by lack of communication are often more serious than those caused by deliberate disobedience.
(6) Pay attention to the long-term impact of your decision.
It is not enough to just consider what kind of direct benefits and impacts your decision will bring. You must be able to foresee what kind of long-term effects and influences it will have. You should remember that when you make your decision public and your subordinates start to carry out your plan, things will have a chain reaction. Don't let today's decision become tomorrow's trouble.
Market decision-making is to completely put an end to the theory on paper, and the attitude of decision-makers is the most critical. For example, Zhao Kuo, if he was not so arrogant and supercilious, would not have made wrong decisions one after another and eventually failed. So do business leaders. To put an end to an armchair strategist, we must first respect facts, and all decisions should be based on facts. Only in this way can we really find the way out of market decision-making: collecting information, analyzing market conditions, calculating costs and predicting benefits. Market decision-making is the most realistic, and everything else is empty!