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2023
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02
Three questions that enterprises must answer accurately in transformation
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It is a difficult process for printing enterprises to change from the historical passive processing type to the modern service type. The market positioning of enterprises needs to change, the guiding ideology of leaders needs to change, the inherent business model needs to change, the existing management team needs to change, and even the staff team also needs to change. It is not easy to get rid of the habits formed in daily life. But there is no doubt that completing the transformation of enterprises should be the main task of all printing enterprises in the "13th Five-Year" period, otherwise it will be difficult to adapt to the market, difficult to meet the requirements of consumers, and difficult to survive.
If Artron Group, where Wanjie is located, is an enterprise that has successfully completed the transformation in the printing circle so far, taking "serving the people's art" and "art serving the people" as its corporate purpose, transforming from a professional color printing company to a cultural and creative company, and winning the recognition and trust of the art auction, creative, reproduction and printing markets, then for the vast majority of printing enterprises, This work is still in its infancy, especially when the economic environment is not so ideal. Many reform measures often stumble, which inevitably causes people to feel confused, hesitant, and even helpless frustration.
According to Darwin, a scholar of evolution, "The species that can survive is often not the strongest, nor the smartest, but the species that can adapt to changes the most." Through the great waves, the enterprises that can finally get out of difficulties successfully and survive the transformation must have successfully solved the following three basic problems: namely, where is the market of the enterprise? What are the differences between them compared with their brothers? What is the team advantage of the enterprise? If the investors of the enterprise really understand these problems, the way out of the enterprise will be gradually clarified in the process of execution, and the spring of their own enterprise will be ushered in again.
The first question is: Where is the market for the enterprise?
Strong market demand is the basis of enterprise survival. The so-called "pigs can fly as long as they stand in the tuyere" is because the supply of commodities is in short supply. As long as anyone enters this market with insufficient supply, he can make money. Now, in a remarkable reversal, printing capacity far outweighed market demand, and Kevin Kelly wrote in Necessity: "You work hard, but you're not in the picture; You're smart, but you're not in fashion, "became" the saddest thing about this age." This forces printing enterprises to consider transformation and upgrading, to explore potential markets, to develop emerging markets, to change the current business model, to seek a promising new space. But all this is not easy, the need for operators to change ideas, conform to the general trend, rebuild the team, adhere to the differentiation strategy.
Where is the market? This is a question that every entrepreneur must clearly answer in this transition. Because, only to find the right market to have the enterprise survival space. Continue to ride the Red Sea, where competition is fierce and profits are limited; The key to trying to seek the blue ocean is to be discerning according to one's own strength and scientific judgment.
Wen's shares, which are popular among domestic listed companies these days, are lucky to have chosen agriculture and animal husbandry (founder Wen Bei-English). The company was started 33 years ago (1983) by seven rural families with 8,000 yuan. Since then, its market value has exceeded 160 billion yuan. It has been praised by management scholar Peng Jianfeng as "the best enterprise in China" besides Huawei. It ranked No. 322 in the 2015 China Top 500 Companies list released by the China Enterprise Association (ranked No. 128 by Fortune magazine in 2016).
By now, almost everyone knows that organic food is coveted by the market, but obviously not all companies are suitable for this industry. Printing also had an unusually brilliant time in a considerable period of time after the reform and opening up, but it is also possible to recover the "beautiful and evergreen yesterday" (Schiller's words) through transformation, because the world cannot live without color and cannot live without printing.
The fact is the same: Artron has not recovered its "beautiful and evergreen yesterday" through transformation. At the same time, more listed enterprises also have transformation plans by virtue of capital advantages, or become the market leader in a certain field through acquisition like Xiamen Hexing and Jielong Industry. Or penetrate into the upstream (into Cofco packaging) or downstream (into the production field of cigarette bags) industries like Aurijin and Tianjin Evergreen, and hold the shares of these enterprises that have a certain correlation with their own business; Or, like Shenzhen Jinjia and Beijing Shengtong, extend from the single printing to the fields of health and education to achieve industrial diversification; ... All in all, tricks vary from person to person.
If the big companies are looking for a way out of transformation, they can be more powerful, more small and medium-sized printing companies are also struggling for their own survival, but it still needs a period of time to complete the market layout and product adjustment.
To answer the question of where the market is, in the final analysis, we should choose the market suitable for our own development, and finally complete the corresponding adjustment in all aspects of the enterprise from team to equipment, to management, to marketing methods, so as to ensure the realization of the new goals. At present, many enterprises are working hard to improve their internal skills and improve their market competitiveness by improving their management level, product quality and reducing market prices. Of course, this can be done, but after all, it belongs to competing for food in the original market category, and does not bring incremental changes. What changes is the market share occupied by enterprises. In the transformation, it is more important to broaden the horizon and seek for more emerging markets that have not been occupied at present through cross-industry, extension and excavation, so as to win more blue seas suitable for their own survival and development.
Peng Zhiqiang pointed out in his book The Power of Business Models that discovering the hidden needs of customers is crucial to improving the profitability of enterprises. These hidden needs are: "The needs that customers cannot articulate; Requirements that cannot be publicly expressed by the customer; Needs that competitors have not yet discovered; "The unmet needs of the industry", to find such a blue sea of course needs more efforts and efforts of the enterprise, but from another point of view, who finds this blue sea, seize the opportunity, who has a higher chance of success than other enterprises in the industry.
Transformation, in essence, is to explore the blue ocean, to find their own enterprise's new market.
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