Enterprises Should Learn To "Discard Choices".

Economics has a theory of "free discarding". We believe that more choices are better than less choices, because we can not abandon many choices.

Most of the strategic theories are teaching enterprises how to choose the direction of management, that is, how to locate and choose.

In an environment of economic stagnation or recession, the difficulty of enterprises is that there are not many good business opportunities to choose from.

But China is in a period of rapid economic growth. The business environment facing many enterprises is that there are too many opportunities to choose, not too few.

At this point, enterprises should learn how.

First, avoid following suit.

Many operators follow suit when they are afraid of risks. If they are wrong, they will not be blamed too much because they are all wrong. But if they fail to catch up with the trend and make mistakes, they will be blamed for the small amount of blame.

It's like the heat of a network company two years ago. Everyone is afraid of not getting on the bus and ending up in a bubble.

However, the strategy is positioning, that is, the difference is to be different. If we do the same thing with everyone else, we can not be a strategy.

Therefore, do not choose the trend industry.

Two, we must have talents.

No matter how good the opportunity is, if there is no suitable person to carry out the strategy, it is in vain.

Talents are those who have high IQ, high EQ, and high resilience.

Many enterprises believe that talent can be sought outside. IQ, EQ and even those with high resilience may be able to seek outside, but it is not easy to find qualified personnel who are in line with business philosophy.

Therefore, if there is no suitable executive talent, enterprises can not easily choose the cause.

Three, produce chain effect.

New business opportunities should have a chain effect with existing businesses.

It may be upstream and downstream integration, or business cooperation.

For example, a car manufacturer enters the automobile agency business based on business considerations, and then enters the car loan service, which can bring more complete services to customers.

The chain effect can be twice the result with half the effort and expand the strength of enterprises. Enterprises that can not produce cascading effects can easily lead to decentralization of enterprises.

Therefore, enterprises can not choose a career without chain effect.

Four, the threshold must be high.

If others are easy to imitate the cause, or enter the low threshold of business, competition is more intense, and profit will be more difficult.

Therefore, enterprises should not choose this kind of undertaking.

Five, improve efficiency.

If you do not know how to choose new opportunities, then the most insurable way for an enterprise is to further improve the efficiency of the existing mode of operation.

Enterprises should constantly ask themselves how can they manage their existing businesses more effectively? How can the growth of business profits grow faster than the cost increase? How can we improve the efficiency of capital utilization? WAL-MART's business strategy is not significantly different from that of Kmart, but the key to WAL-MART's success is higher efficiency.