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    Zong Qinghou'S Dangerous Moment: How To Compete With The Top Companies

    2010/11/5 10:32:00 110

    Zong Qinghou Wahaha Business

    In 2010,

    Zong Qing Hou

    Forbes, the richest Chinese richest man in the middle of the world, ranked the three richest in China in the middle of March. The richest mainland China ($7 billion) was the richest in China in the first half of October (80 billion yuan). At the end of October, Forbes's China rich list became the richest person in mainland China (53 billion 400 million yuan).


    In the 2007-2009 year, Zong went through the longest and most dangerous part of life: the battle for corporate control with Danone, when the "battlefield" was filled with smoke and smoke.

    Zong Qinghou, who experienced the success or failure of "heaven and hell", was finally successful.

    Zong Qinghou controlled

    Wahaha

    The annual profit exceeds 10 billion yuan, and then ushered in the greatest glory of life: three times in one year, the richest man in China!


    The new richest man has created many China's first: the first richest man to become a late bloomer (the 42 year old only started from scratch); the first richest person in the consumer goods industry; the first in the fully competitive industry, the richest man who was the only one who was fully competitive by market forces; the first to succeed in building the richest brand of the manufacturing industry; and, of course, the first richest person in China who was universally recognized by academia as "heterogeneous" in the controversial way of management, organization and management.


    However, when the wood is in the forest, the wind will destroy. The richest person in China is not good enough.

    Look at the richest man in front of Wong Kwong Yu. Zhou Zhengyi's fate is chilling.

    For Zong Qinghou, the power from the market is the greatest threat to his wealth.

    Zong Qinghou's source of wealth, Wahaha Food and beverage, is facing unprecedented challenges.


    The bottleneck of enterprise growth has emerged.


    Starting from scratch more than 20 years ago, after many years of miraculous high-speed growth, Wahaha's turnover amounted to 43 billion 200 million yuan in 2009, and its total profit was the top 500 of China's private enterprises.

    Zong Qinghou immersed himself in his brilliant dream: in 2010, he planned to achieve business income of 70 billion yuan, and realize the annual operating income of 100 billion yuan in 3 years.


    Ideal is beautiful, reality is cruel.

    In 2010, Wahaha's performance growth was weak, and in the main market area of Jiangsu and Zhejiang, the sales volume of Wahaha began to decline, and some areas fell more than 30%.

    This year Wahaha Group and public reports have no news about Wahaha's growth.

    Do not say 70 billion yuan, 50 billion yuan is also difficult to achieve.


    In recent years, Wahaha's fast food products, such as nutrition express, crooked and so on, have reached the maturity stage of the life cycle. There is no development lag. Last year, the HELLO-C of star products has dropped sharply, and the bottled water has gradually declined.

    This year launched the mountain red, blueberry ice tea, wax gourd tea...

    There are no more than ten kinds of new beverages.

    The heavy milk product of 2010, the new Wahaha Edison milk powder, is now struggling because of a series of mistakes such as positioning, pricing, promotion and so on. The market share is less than 0.5% (AC Nelson zero research data).

    It is said that because of poor sales, Wahaha gave each employee a task of selling 6 cans per person, and simply reckon that the sales of Wahaha Edison milk powder this year will be less than 100 million yuan, less than one of the expected ones.


    Wahaha once proud of the "joint marketing" system, because Wahaha constantly channels sink change, loyalty is also far less than in the past.

    Wahaha's control over the channel is far less than that of Kangshifu's "path intensive farming" system, which is better than that of Coca-Cola's "direct camp" system in big cities.

    The booming business super channel construction, scientific brand management system and so on, ten years ago were Wahaha's short board.


    Wahaha's media advertising efforts are almost the most domestic enterprises.

    In recent decades, the power of television media advertising has aroused Wahaha to some extent.

    However, in the era of fragmentation and fragmented media such as the Internet and mobile phones, the effectiveness of TV advertising has been getting weaker and weaker.

    Wahaha has rapidly developed the brand's "fast marketing" approach through integrated media dissemination, and the probability of success has been getting lower and lower.


    Zong Qinghou, a centralised power, still has no deputy general manager until now. He still has a lot of power and no sign of reform of collectivization and organizational structure. How old Zong Qinghou finds and cultivates qualified successors is well known. His corporate culture is more and more stuck on the surface and is out of line with the modern affluent times. His loyalty and attitude are more problematic. Wahaha seems to be hard to retain the college students who have picked up hundreds of miles, and can not keep the professional managers who come from them. Not only that, Wahaha's shareholding structure is complicated, but it may erupt one day in the future.


      

    enterprise operation

    If we sail against the current, neither advance nor retreat.

    Some people worry that such a Wahaha, how to compete with Coca-Cola, Kangshifu and other top companies in the pursuit of interception? {page_break}


    Diversity is temptation and trap.


    Zong Qinghou seems to have seen the bottleneck of the development of enterprises.

    Zong Qinghou once revealed that Wahaha drinks can achieve 50 billion yuan is the limit.

    However, he did not make continuous progress and continuous innovation in the modern enterprise management system.

    In order to realize his dream of "100 billion", his solution is to bring the enterprise to the road of diversification.

    Zong Qinghou made it clear that diversification will focus on three major areas, namely, resource-based, retail and hi-tech industries.


    Resources: visit Philippines's mineral resources and investment projects such as PetroChina.

    Commercial retail: announced the establishment of more than 100 comprehensive shopping stores in the whole country. The main reason why Zong Qinghou entered commercial retail was that he could not stand the exploitation of foreign supermarkets.

    Even he is very concerned about the high-tech industry at home and abroad. "Many of the leading international high-tech technologies are in Israel, and I am also concerned about that."


    Zong Qinghou believes that whether or not to diversify depends mainly on three aspects. One is whether there is a need for oneself or not, the two is whether there is strength or not, and three is there any chance.


    There is no right or wrong in specialization and pluralism.

    It is the only way for an enterprise to expand and diversify, but the key question is whether there are supporting modern management platforms and mechanisms in the process of diversification.

    Obviously, Zong Qinghou, accustomed to ignoring the management theory at home and abroad and accustomed to fighting by his own strength, does not have an advantage.

    Although Zong Qinghou said, "I am not familiar with the field, will consider the way of cooperation to invest."

    However, after a divorce war with Danone in France and a peaceful break up with Daly of Hongkong (children's wear), is it true that Zong Qinghou can really find a strong complementary partner and be able to develop long-term friendship and cooperation?


    Zong Qinghou, a middle-aged entrepreneur, has been walking in a risky way. He has become a model for many entrepreneurs to persuade himself to take the road of diversification.

    Now, sudden youth crazily is really a big surprise.


    Such a long span of diversification is the starting point for the next round of rapid development or is it a dangerous predicament? Time will prove everything.


    Mao Zedong is an idol of Zong's life. He made the Wahaha empire with Mao Zedong's military thought, and also made his richest man.

    But today, people still have reason to hope that Zong Qinghou, who is at the top of the wealth, needs more reason and more sober mind. On the basis of sticking to the main beverage industry and strengthening management, he should face diversified choices and do his best.

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