How To Implement Strategic Management For Small And Medium Sized Enterprises

< p > < strong > grasp the cornerstone of the strategy < /strong > < /p >

< p > a href= "http://www.91se91.com/news/index_c.asp" > internal integration < /a > means creating and maintaining existing competitive advantage by adjusting internal resources, including controlling costs, improving productivity, developing new products, expanding new markets and improving management capabilities on the basis of existing capital structure.

Through internal integration, the existing resources of enterprises can be fully utilized, so that the scale of production can be expanded in a certain capital structure and technology field, thus enhancing core competitiveness continuously.

After setting up their own core competencies, on the basis of which, purposeful external pactions, such as joining or participating in OEM, continue to acquire core competencies, and the key to maintaining the competitiveness of SMEs is to work out a suitable competitive strategy. This strategy must be able to enhance weaknesses and gain competitive advantages.

Specifically, from the perspective of cost and marketing, the following strategies may be more suitable for small and medium-sized enterprises.

The two cornerstones of strategy are core competence and competitive advantage.

How can an enterprise establish its core competence? Generally speaking, there are two ways: one is internal integration, the other is external paction (capital expansion).

Internal integration is the basis of external pactions; external pactions must be integrated through internal integration so as to turn new resources into their own.

Capital expansion requires enterprises to invest a large amount of resources. If they fail to get "a href=" http://www.91se91.com/news/index_c.asp "financing" /a ", they will affect the operation of existing businesses. Moreover, successful capital expansion must have sufficient internal digestion capability, which shows that the requirements for capital and management are very high, and SMEs generally should not rush to capital expansion.

At present, China's small and medium-sized enterprises should establish core competence through internal integration.

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< p > < strong > concentration strategy, < /strong > /p >

< p > a centralized strategy is more suitable for the small and medium enterprises in the service industry. For example, the Southwest Airlines in the United States are smaller in the aviation industry, but their profit making capacity is that those big airlines are unable to catch up. The reason for their success is to insist on their service characteristics and market positioning -- providing cheaper services for those on short trips and business trips.

It can be seen that concentrating a little strategy can also help reduce costs.

It is worth noting that, once the a href= "http://www.91se91.com/news/index_c.asp" > target market < /a > and product positioning have been identified, they should not be changed frequently. Insisting on serving their customers often requires enterprises to dare to refuse the needs of other minority customers and implement "doing something for nothing".

Small and medium-sized enterprises do not have the need and ability to meet most of the market demand. If they compete for the same customer group with large enterprises in the industry, SMEs will be in a disadvantageous position.

A centralized strategy is to focus on a particular customer group, or a subdivision of a product range, or a market in a particular region.

Focusing on how to serve the target market well, every performance policy formulated by the enterprise must consider its own market positioning and concentrate its efforts on target customers to improve efficiency.

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< p > < strong > low cost strategy < /strong > < /p >

< p > enterprises are required to establish effective production capacity effectively. Based on experience, we should go all out to reduce costs, control cost management costs, and minimize costs of R & D expenses and brand establishment.

According to the research on the distribution of SMEs in China, SMEs mostly focus on two types: decentralized industries, including services, retail, wholesale, timber processing and metal assembly, agricultural products and venture businesses.

The other is new industries, including IT, NT, new materials and new energy enterprises.

One of the reasons why SMEs mainly focus on the above two types is that the long-term average cost curve of these industries is a relatively gentle stage in terms of scale, so that enterprises of different sizes may be moderate.

In this regard, Japanese enterprises should learn from their practices. They design simple products that are easy to manufacture and have market demands, so that cost control becomes feasible.

However, the design innovation of simple products needs to increase investment in the early stage. China's small and medium-sized enterprises often imitate other people's form and may infringe on other people's intellectual property rights, so we should pay attention to avoid causing additional illegal costs.

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< p > actively participate in and facilitate division and cooperation in SME clusters.

China's industrial division of labor is deepening, so that SMEs can not be restricted by economies of scale.

Some industries can replace economies of scale within enterprises by means of "economies of scale" and "economies of scale of parts and components".

Through the internal division of labor externalization, a large number of small and medium-sized enterprises are gathered in a certain area, and the division of labor is carried out on the upper and lower production chains of a certain product, forming the form of enterprise clusters.

In clusters, enterprises share resources and reduce paction costs, thereby enhancing the competitiveness of the whole cluster and individual enterprises.

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