Breakthrough strategy and strategy of China's small and medium-sized enterprises under the principle of "drainage" and "throttle"

In the last article titled "Heaven" has changed! In the article "The Great Changes and Warnings of the Living Environment of Chinese SMEs", Hong Jinwen, general manager of Shenzhen Huatian Weiye Technology Co., Ltd. (hereinafter referred to as "Hua Tian Weiye") bluntly said: With the development of the times, the business environment of the enterprise is changing.

Hong Jinwen said that the living environment faced by SMEs has changed dramatically in the past, in terms of product, market, management, cost, capital and social environment.

"It is very likely that this is a big strategy of the country. Through the national policy of 'mass entrepreneurship and innovation,' increase competition, and then increase the implementation of the five laws, survive the fittest, eliminate inferior production capacity, and guide capital and entrepreneurship to innovative, The purpose of sustainable industrial development is to force industrial upgrading and improve the GDP structure."

But no matter what, the market situation is getting more and more serious. How to better survive and develop in an increasingly standardized business environment? How to achieve breakout in an increasingly cruel market environment? Become the theme of SME exploration.

At present, the competition in the LED industry is fierce, and large enterprises rely on capital strength to take advantage of the scale of production expansion and obtain better profitability through mergers and acquisitions. For most SMEs, they are not able to gain the favor of the capital market, and thus cannot be better endogenous. Under such a severe situation, how can SMEs achieve breakthroughs?

Hong Jinwen, general manager of Huatian Weiye, said that for SMEs, there are mainly the following breakout modes:

1. Take the market segmentation and subdivide product brand breakout mode

The core value of this breakout mode is reflected in the reliability and trustworthiness of the quality, and its powerful features, which are characterized by higher product pricing and larger profit margins. However, the time cost is high, and the starting capital is large, and the required talents are high-end.

“Doing a brand in the segmentation field is a good choice, provided that the company has a certain financial strength.” Hong Jinwen admits, “It highlights the ability of brand building, market operation, industrial design, quality control and supply chain integration, weakening The production and technology development capabilities. The segmented brand breakout model is a light asset and heavy circulation model that offsets manufacturing and technology development costs through market segmentation, product segmentation and brand operations to increase gross margins."

2. Single product is extremely cost-effective, quickly detonating the market model

The core value of the single product's ultimate price-performance breakout mode is reflected in high cost performance and low price, but the product profit is low. Suitable for large-volume, high-standard product areas.

"This breakout mode strengthens the product design and product technology development capabilities, makes the product extreme, relies on ultra-high cost performance to detonate the market, uses the Internet thinking to quickly transfer product value, and quickly capture the market." Hong Jinwen said, "However, its promotion and The speed of occupation is very important. It is necessary to know how to avoid business risks (low profit and low risk). In addition, product iterations follow up faster, otherwise the copyers will keep up and the enterprise will be hindered."

3. Multi-variety, less material detonation market model

The core value of multi-variety and less material detonation market breakout mode is reflected in the strong service capability, low transaction cost of customers, many market opportunities, high price and high profit characteristics, and is suitable for small-sized and poorly-standardized product types.

“This breakthrough model strengthens the construction of product platforms, with multiple products and complete types, so as to increase market opportunities.” Hong Jinwen emphasized that “enterprises should not be heavily managed due to multiple varieties and multiple materials, and should be reduced by multiple materials. The management costs brought about increased."

Of course, it is not a simple matter for SMEs to break through from a fierce living environment. While clearing the way to break through according to the actual situation of the company, SMEs also need to change several existing misconceptions and establish a correct business philosophy.

First of all, companies must be strong, not greedy, and must be strong first. Hong Jinwen said that enterprises should give priority to becoming stronger, rather than deliberately seeking big. Strong talent is the foundation of the company's life and development, and it should become a natural product of strong development.

Second, companies should not be too greedy, pay attention to "food" nutrition and its systemic risks. In fact, enterprises, like people, are not the most important to eat, and how much nutritious food is the most important. Let every "food that eats" become muscle, in order to promote the healthy development of the enterprise.

Third, heavy assets are not the core competitiveness of enterprises. Hong Jinwen mentioned that too many companies mistakenly believe that heavy assets are the core competitiveness, so moving is the heavy asset layout, leading to the exhaustion of corporate cash flow. Of course, if it is necessary for industrial development, and other peers do not have the strength to invest, it is another matter.

In addition, having a customer does not mean having a market. It is worth noting that the market is a common demand of a group of customers, and the customer is a member of the group. Enterprises want to seek big development, need to use big data thinking and value rules, to become a large customer base and a larger market, can not be kidnapped by individual customers, and then into a passive situation.

In addition, the customer is not equal to God, should be more like "boyfriend." In fact, what customers need is product value, so companies must continue to be strong. The nature of the transaction between the enterprise and the customer is the exchange of value. Therefore, the enterprise cannot treat the customer as it is, and must have an independent "personality" and do valuable services.

Also, look at the value of suppliers correctly. For a company, the value of a supplier is far from the price/performance ratio of the product; the quality assurance capability, service capability and willingness, the ability to cooperate with the strategic product development, and the ability and willingness to be financed are all important. It is no exaggeration to say that suppliers are a solid backing for enterprise development.

Finally, management must be changeable and management must be stable. The management method should be good at change, especially the product and marketing model should keep up with the market changes at any time; however, management must be consistent, otherwise the employees will be at a loss.

It must be mentioned that the establishment of a correct business philosophy is far from enough for the benign management of enterprises. Many small and medium-sized enterprises also need to focus on rebuilding the core of the company and maintain sustainable competitiveness. These include corporate strategy systems, profit models and core competencies and customer selection mechanisms.

“In the current environment, companies need to restructure their market, brand, asset and capital strategy systems, etc.” Hong Jinwen admits, “The strategic considerations for a healthy development of a company need to balance customers, themselves, employees, suppliers and national interests; at the same time, strategy Space must be able to support the company to achieve its goals and vision. Also, consider whether the company can control this strategy."

In order to redefine the profit model and core competitiveness of the company, Hong Jinwen said: "We must constantly reflect on what we want to earn, why we can earn, what kind of core competitiveness and core resources are needed, and how to shape core competitiveness. The market has changed a lot, and enterprises must have the ability to continuously adjust and land."

The other is to establish a market-oriented customer selection mechanism that provides value to customers. Enterprises need to establish a marketing strategy that is market-oriented and focused on customer service, to increase the customer base and reduce the risk of customers being too concentrated. At the same time, with the ability to provide value to customers as a standard, to select cooperative customers, and thus avoid over-selling in the wrong customers, wasting enterprise costs, and missing out on corporate development opportunities.

“Also, companies need to continuously dilute the relationship business sales model and strengthen value marketing. Even the best personal relationships are difficult to maintain customer cooperation, and providing value to customers is fundamental.” Hong Jinwen bluntly said, “Now, business functions are significant. Changes, from traditional tackling to value transfer + service, the function of business personnel is to quickly deliver product value and provide professional and effective services. In addition, the overall collaborative operational capability of the enterprise has become the foundation of enterprise development, unlike the past You need to do business well."

Whether it is to establish a correct corporate concept or to restructure the core of the enterprise, the fundamental purpose of the enterprise is to continuously achieve "profitability" from the aspects of operation and management. Therefore, for companies to continue to do is to continuously improve their profitability.

To continue to make profits, companies need to maximize the “drainage” and think about how to achieve maximum “throttle”. Hong Jinwen vividly compared the fact that the benign management and management of enterprises is how to make the “water” in the reservoir more and more.

As a member of the SME army, Huatian Weiye continues to adhere to the business philosophy of “product + service” and “quality + price”, constantly thinking about how to make customers more competitive in the market, how to make customers invest less and earn more profits. . Therefore, in the severe living environment, Huatian Weiye has been making progress and developing rapidly.

Hongjin text people have been studying in the LED driver power industry for many years and have rich experience. In the next article entitled "Trends in the Localization of High-Power Power Sources", he will focus on analyzing the high-power power market and compare foreign brands with domestic power sources, thus highlighting the key points and advantages of localization of high-power power supplies, so stay tuned. !


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