Is Your Business Future-Proof? Or Falling Behind?
Over the past 20 years, the average GDP growth rate has exceeded 8%. In a rapidly growing incremental market, the requirements for the competitiveness and management capabilities of enterprises are relatively low, and the tolerance rate is high. Most enterprises can find a living space.
Over the past 20 years, the average GDP growth rate has exceeded 8%. In a rapidly growing incremental market, the requirements for the competitiveness and management capabilities of enterprises are relatively low, and the tolerance rate is high. Most enterprises can find a living space.
However, as the GDP growth rate enters the 3%-5% normal, all industries have entered the era of stock market game where growth has stopped or even declined. Competition will become more and more fierce, and most uncompetitive enterprises will be eliminated in the fierce market competition.
So, what should enterprises do?
The key is to build the core competitiveness of enterprises.
In the future, enterprises without core competitiveness will find it difficult to survive in a fierce competitive environment.
Most enterprises, especially small and medium-sized enterprises, lack core competitiveness. Most enterprises have been operating in an industry for more than ten or twenty years, but have not established any core competitiveness in such a long time. This is a tragedy! The reason why they can survive and even develop for a long time is mainly because of the incremental market dividends of rapid economic development. However, now that the economy has stalled and the dividends have disappeared, their profits will become thinner and thinner, and their losses will increase.
Most companies made money in the past without knowing why they could make money. Some small and medium-sized entrepreneurs even mistakenly thought it was their own ability. If you ask them "Does your company have core competitiveness?", they will definitely not be able to say what core competitiveness they have.
So how to build the core competitiveness of the company?
Build short-term competitive advantages.
To build the core competitiveness of the company, the company needs to re-formulate its development strategy, which usually takes a period of accumulation to achieve. Therefore, for most companies, a more realistic and feasible reasonable path is to do the following things under the guidance of the company's core competitiveness strategy:
① Realize product and service differentiation.
② Build a brand. Product advantages and service differentiation can establish a company's short-term competitive advantage. Ordinary brands are a higher competitive advantage than product and service differentiation, but only strong brands that can lock in customers and increase premiums are long-term core competitiveness, so corporate brands usually have to go step by step, from famous brands to strong brands.
③ Comprehensively improve business management efficiency, work intensively, and abandon the past extensive management.
④ Reconstruct the business model.
