Case: Put all the "eggs" in the microwave oven.
Writer Mark Twain once said: Put all your eggs in one basket, and then watch this basket. Borrowing this passage from enterprise management is: choose a promising industry and concentrate the development of all resource fields, that is, implement professional management. Andy Grove, president of Intel Corporation, expressed deep sympathy for this. His company has been sticking to the microprocessor industry, with a global market share of 90%. Liang Qingde, the chairman of China Galanz Company, also holds this view, and put all the "eggs" into the microwave oven, thus giving birth to the first brand of microwave oven in China!
How did Galanz do this?
(A) the strategic choice of microwave oven industry
199 1 year, galanz company chose microwave oven as its development industry, and its strategic vision is:
(1) In the 1960s, the microwave oven industry rose in the United States and other developed countries, and entered the popularization period in the 1990s (1990, the global microwave oven output was 22.54 million), and the production technology was mature.
(2) Microwave oven is a sunrise industry in China. With the popularization of household appliances, the improvement of residents' living standards and the pursuit of convenient life, the microwave oven market will be a market with small base, rapid growth and great potential.
(3) 1990 National microwave oven output1000000, with tens of thousands of imports. Although there is competition, it is not fierce.
(b) A bold and successful strategic shift.
Although the macro situation is favorable, it takes courage for Galanz to decide to enter the microwave oven industry that has nothing to do with the original clothing industry. Different from diversification, Galanz adopted a strategic shift: from 199 1 to 1993, Galanz gradually closed down the down jacket production line with considerable income and withdrew from the clothing industry; On the other hand, Japan, the United States, Italy and other countries have introduced a complete set of microwave oven production equipment and technology with the advanced level in the 1990s, and entered the microwave industry. 1993, Galanz Company produced 10000 microwave ovens and put them on the market.
(3) concentrate all resources and strive for the first place in the country.
Galanz pursues the specialization strategy, instead of adopting the diversification policy of "fighting on both sides", it concentrates all resources and develops a single microwave oven industry with a focus on scale in a certain direction. In this regard, Mr. Yu Xiaochang, deputy general manager of Galanz Company, said: "As far as the strength of Galanz is concerned, everything will be finished, so we will concentrate our superior forces on one point." This is an ideal choice for the management strategy of small and medium-sized enterprises: in the case of weak enterprise strength and insufficient internal resources, enterprises should give priority to choosing a single industry or even a single product as the focus, concentrate their advantages to win market position, and then grow into large enterprises.
194, the output of Galanz microwave ovens was 654.38+10,000 units, and reached 200,000 units in195, with a domestic market share of 25. 1%. 1996 production increased to 650,000 units, and the domestic market share was 34.85%. The output of 1997 is close to 2 million units, with a market share of 47.6%, ranking first among domestic and foreign brands.
(a) high enough to keep out the cold
1997101October18th, Galanz Company announced that it would reduce the prices of its 13 products in all directions, with the price reduction range of 29%~40%. As a result, the market share of Galanz microwave ovens in the domestic market is close to 50%, accounting for half of the domestic market, while the market share of foreign brands has dropped to about 40%. The market share of other domestic brands is less than 10%, and the market share of Shanghai Feiyue and Yamei has even fallen below10%.
On the basis that the market share exceeds the international monopoly point by 4 1%, Galanz company is not satisfied, but continues to expand its scale, with a design capacity of 4.5 million units in 1998. After this goal is achieved, Galanz will become a worldwide microwave oven manufacturer.
Question:
1. What is the basis of Galanz's strategic shift?
2. How did Galanz become the king of microwave ovens?
3. "Put all your eggs in one basket and watch this basket." What kind of management thought does this sentence contain?
Key points of case analysis:
1. What is the basis of Galanz's strategic shift?
A: ① Emerging industries and dawn products have matured in developed countries, and dawn is emerging in China, with good prospects and great potential.
(2) The people's income has increased, the quality of life has improved, the pace of work and life has accelerated, and the demand for kitchen hygiene and life is fast and convenient.
2. How did Galanz become the king of microwave ovens?
Answer: ① Close the production line selling original clothes and transfer resources to the microwave oven;
(2) introduce first-class equipment and technology, improve product quality and performance, and make the industry bigger;
(3) specialized production of this variety, bigger, stronger and better.
(4) Implement the competitive strategy of cost first, increase market share and beat competitors.
3. What kind of management idea is contained in the sentence "Put all your eggs in one basket, and then look after this basket"?
Answer: ① Professional management.
② Refinement and centralization
③ Scale management