Zong Qinghou Summarizes Wahaha's Three Strategic Mistakes

In the first batch of private entrepreneurs' camp in China, Zong is no doubt powerful. He can bypass many traps in the growth of enterprises, let Wahaha go all the way to today, and continue to deduce the miracle of enterprise growth for many years.

However, after Wahaha's annual sales revenue exceeded 68 billion yuan, he became the richest man in Forbes's China after three consecutive years. In 2012, Wahaha suddenly fell into a vicious circle of negative growth. Powerful Wahaha In the past year, why did it suddenly become weak?

　 Internal injury 1: product matrix missing

What does Wahaha rely on to make bigger products? Products are the soul of the survival of enterprises. Wahaha's huge product line has more than 150 products. With these products, Wahaha has been able to rapidly expand to tens of billions from the scale of production and marketing of several billion yuan. However, when we look at Wahaha's product matrix, we find that there are few star products in its product line, which can achieve more than 10 billion yuan of monomer products, and only one nutrient express line.

What does this product form explain? It shows that there is a serious lack of product matrix of Wahaha. Wahaha's product base is strong, but there are too many products of imitation and follow up, and its own original products are too few, and there is a lack of core products that can lead enterprises to achieve breakthroughs in production and marketing scale. That is to say, Wahaha is too short of prime products that can enlarge the marketing level of enterprises.

China's aquatic products industry is an industry that can create product myths. Such as Wang Laoji, a single product has achieved more than 200 billion annual sales revenue, and has sold a cool tea into fashion products. For example, Red Bull has been alone in the field of functional beverage segmentation for many years, but no one has surpassed it. Even the increasingly popular Le Baishi also has a strong product pulsation, which leads the consumption of young people. The author had envisaged that if these products were Zong Qinghou, his Wahaha not only easily crossed the 100 billion yuan level enterprise mark, but also led Wahaha to do better and go further.

Unfortunately, none of these products are Zong Qinghou's. Wahaha may have such an opportunity in the past few years, but with the improvement and cohesion of the market awareness of these products, Zong Qinghou has no chance to catch up in these aquatic product segments.

The lack of product matrix is the biggest internal injury of Zong Qinghou's strategy. Not only does Wahaha become bigger but not stronger, it also becomes the most direct cause of Wahaha's negative growth in operating income in 2012. If this situation continues, it may cause Wahaha to change from strong to weak after 35 years' slow down.

　 Internal injury two: diversified misunderstandings

Zong Qinghou's diversification began in 2002, and the field of intervention was irrelevant to enterprise resources. Children's wear Production. In those days, Wahaha children's clothing was successfully raised by more than 200 million yuan in a few months in the form of franchise, which once made Li Tuchun, President of Taizi milk, envy and imitate. Wahaha children's clothing has been ten years, and today's annual sales volume is only 200 million yuan, far away from the 1 billion yuan sales scale Zong Qinghou hoped for, and it has not provided any commercial value for Zong Qinghou's diversified water trial.

The prospect of diversification and unrelated diversification attracts many Chinese entrepreneurs to explore, but from the current situation, few are successful. Even Liu Chuanzhi, a "Godfather" entrepreneur, has been very unsuccessful in the exploration of Lenovo's diversified path. So far, Lenovo has not yet found the development direction of Lenovo's cross industry diversification. Lenovo Group to do fine chemicals, Lenovo Group to make wine, from such a diversified industry development direction, readers can see Lenovo's future? {page_break}

Take a look at the former "China air conditioning first brand" Chunlan, under the leadership of Tao Jianxing's unrelated diversification strategy, it took less than ten years to destroy the brand completely, and almost destroyed the enterprise. The diversification of enterprises taking the family for granted has destroyed an enterprise and made people sigh with regret.

In 2012, Zong Qing began to intervene in business by diversifying the diversity of Wahaha's unrelated industries. Retail It opened the first "Europe Europe shopping mall" in an upscale community in Hangzhou. Although his daughter is not optimistic about this, and has not stopped dad's determination, but from the current cold and cheerless operation situation of the European mall, Zong Qinghou's choice of diversification is not bright. How much commercial value can be introduced into the European second-class so-called "* *"? How big marketing scale can these second-class "* *" form in China? These simple data are not done before they are clearly identified, which is obviously not Zong Qinghou's past style.

Perhaps Zong Qinghou has already felt the difficulty of Wahaha's growing up?

In the aquatic product industry that Zong Qinghou is familiar with, whether we can expand the sequence of products related to Wahaha? I think it is feasible, but there are many good opportunities. Zong Qinghou did not take the initiative to attack, but chose to follow up.

In the choice of enterprise development strategy, Zong Qinghou has always relied on products to fight the world, and has never used the strategy of mergers and acquisitions to expand the relevant product units of enterprises. This is extremely rare in the domestic business community. In recent years, "two music" has been frozen for ten years in the "Coke Cola" and "Arctic Ocean", two domestic beverage brands have returned, which is a good opportunity for Zong Qinghou who once launched the national brand successfully launched a very cola. Regretfully, Zong Qinghou was indifferent to this. The Arctic Ocean Pop has been popular since it returned to Beijing market, and there is great momentum for the reunification of rivers and mountains.

　 Internal injury three: thin industrial structure

　　 Zong Qing Hou Lengthened by product line made Wahaha, but it also left Wahaha an irreparable fatal wound. Observing his business from the industrial structure, we can find that Wahaha is just a product piled up rather than an enterprise with a complete industrial structure. In recent years, although his daughter has made some contributions to the perfection of Wahaha industrial structure, it has merely repaired the Wahaha and has not fundamentally solved the weakness of Wahaha's industrial structure.

The so-called industrial structure is the business life structure of entrepreneurs seeking reasonable, healthy and sustainable development for enterprises. Whenever the core competitiveness of enterprises is strong, the construction of their industrial structure is very strong and perfect, such as GE, such as SIEMENS, such as Samsung. Even the "two joy" of the single industry will build the core industrial structure of the enterprise in the form of products to prevent the impact of competitors, such as the three brothers of Coca-Cola and three brothers of Pepsi Cola.

Aquatic products industry is an unlimited potential health industry. When the market conditions were not available, Zong Qing chose this industry without any hesitation. Why does he not continue to work hard in this industry that is unlikely to have industrial ceiling?

In the frequent repeat consuming aquatic products industry, the establishment of a strong core product led industrial structure has a natural fertile soil. But the core is that you should seize the consumer's choice of your lifeline, so that consumers can choose to consume your products from generation to generation, such as "two music".

What Wahaha lacks is such products and strong industrial units built on this product. From the perspective of "gage" and "Kai Li", which are well understood in current market consumption, Wahaha has been paying attention to the cultivation of strong and diversified new products. This may be the new atmosphere brought by Zong Qinghou's daughter Zong Fuli to Wahaha. Whether Wahaha can continue to maintain positive growth depends on the cultivation and growth of these new genes.