New Model Of Enterprise Management: Extreme Competition

We have been unable to read the voluminous.

The success of an enterprise is not limited by normal competition, but by extreme competition.

We hate competition, but we know that competition is the driving force of market optimization.

So the only choice for all enterprises is to adapt to competition and gain advantage in competition.

It is generally believed that the advantages in competition are obtained through the following factors:

1, the right to dominate the limited share of resources.

Such resources must be irreplaceable under the same cost.

Financial assets, mineral energy, license and information resources.

2, the technology of resources processing or the application of technology has more advanced nature.

3.

But the above theoretical generalization is basically useless to business operators.

You can hardly tell whether they are the reasons for the competitive advantage or the result.

A more common saying about competition is: if the same product is lower in price or better in price, you are of course competitive.

This seems to be an axiom.

But this is also basically useless to the managers of enterprises.

Because there will be no "same" products in reality, and the "price" of the price is not even determined by the selling price.

If I don't agree, let me break it down.

The business that I understand is two main categories in China. One is to do it up and sell it to the legal person, the main is the government.

One is to do it downwards and sell it to the natural person, the common people, that is, the mass market.

The first type of business is a game of irrational chess, and it is all about the ultimate war.

There is no yardstick in price for buyers. Even the so-called bid price is the number of variables and the number of matches under the contest.

If you believe the price is true, you will soon be in the mall.

The second type of business seems to be able to talk about marketing principles.

But you think consumers do not think alike at the same time.

When consumers think this way, you will change the law to emphasize that their things are different.

If you think consumers will objectively examine the similarities and differences of certain products, or you think that consumers have the ability to measure the price and utility of several kinds of consumption, you are wrong.

You are wrong: people who buy things are writing as professors in marketing.

I do not belittle consumers.

As a matter of fact, I really understand consumers as human beings, rather than some factors that can be deduced by formulas in the market.

Sometimes researchers call it purchasing power.

When you analyze purchasing power, you will find that the most relevant is price and function.

But you try to adjust these two factors according to the formula to see whether the purchasing power is changing according to the theoretical prediction.

A good winner is a good loser, a good loser never dies.

This victory and defeat is not just about the so-called enterprise theory.

Theory is the revelation of rules, but reality is irregular.

Theory is the connection of limited elements, but reality is the integration of infinite elements.

Theory is nothing more than talking and doing.

It is right to divide strategy or plan into anticipation and randomness.

Competition among enterprises can also be divided into normal and extreme.

The problem is: it is not normal competition that helps enterprises succeed. For enterprises, the only effective competition is extreme competition.

What are the limits of competition?

When Vanke's Wang Shi loudly accused Shun Chi against the law of real estate investment, even the businessman was hurt by his rules.

Because the other side is not doing the industry, but is doing business.

The best interest of enterprises is to destroy competitive enterprises and make profits.

Sunco has grasped the key to competition (seven inches of snake): land occupation.

The theoretical reasoning is: if the general profit of real estate is 20%, then it will not be profitable for Shun Chi to take the price of 20% higher than others.

In fact, the two cardinal numbers of 20% are different, and the sales environment after squeezing out the competition side is different.

So the reality is: Shun Chi's profits will be even higher.

Pivotal

Find out where the gate is, how do you implement it?

Extraordinary means can not be imagined by ordinary people. It is a way that theories and rules can not be derived.

I think it's a marginal means.

Edge competition means nothing.

The extreme limit is the edge.

If there is room for space, it means no use. If there is a slight overshoot, it will be completely annihilated.

The concept of marginal optimum in economics can be used, but its analytical environment (coordinates) is normal, which is basically useless.

Edge competition requires: putting the interests of employees at the edge, placing the cost load at the edge, placing the influence of advertising at the edge, and placing marketing means at the edge.

When you are on the edge, all those who do not reach the edge are trapped in your pocket.

Does GE have rules?

Welch's number one, no boundary sharing, standardization and e-commerce are rules?

No

He built it and broke it to ensure that he was always at the far end of the industry's competition: the limit.

If you form rules in competition, it means that your competitive advantage is beginning to lose.

Rules can be sorted out by others, and can not be self established and executed.

The emergence of "enterprise life cycle" is a proof of the calamity of rules.

All systems are in operation trying to find a "stimulus response" rule between the environment and the environment. The establishment of these rules increases the entropy value until the system loses its ability of self-renewal and finally collapses.