How to integrate upstream and downstream resources?

How to integrate upstream and downstream resources?

In the past, a group of entrepreneurs got together to talk about their own projects; Now, a group of entrepreneurs get together and talk about their own resources. Entrepreneurs who have no connections and no resources are probably unable to get in touch. It can be said that resources have gradually become a "steelyard" symbolizing the status of entrepreneurs. Whoever has the most resources has the louder voice.

As a result, many entrepreneurs began to complain: my business has just started and there is nothing. What resources can it talk about?

How do you know you have no resources without integration? Relatives, friends and colleagues around you; Your former boss, teacher, classmate; Shops, stalls, shops, etc. What you have visited is your resources, and all you need to do is integrate them and use them for your own use.

Then, when we talk about resource integration, we must first think clearly about the purpose of enterprise integration.

In the past decade, the first resource integration was called government resources, and the second was called bank resources. It is generally believed that the ability to integrate resources is the ability to pull relationships and find loans, so that many entrepreneurs are always stuck in the traditional business model and are always habitually looking for a way out, thinking that the success of the past will ensure the smooth development of the future.

However, the market environment under the new normal has undergone fundamental changes. Resource integration is not a strategic decision for long-term interests, but an innovative ability. The primary purpose is to enhance the core competitiveness of enterprises, at least to reduce costs, and then enhance the market synergy and brand benefits, and revitalize enterprises. Only such integration can be valuable and create value.

In addition, according to different enterprises and methods, the technical means of integration are also different.

For example, some enterprises have abundant cash flow and can take the form of cash acquisition; Some enterprises are short of cash flow, so we can consider equity acquisition, that is, to acquire a part of equity, so that the upstream and downstream core enterprises can become one of the shareholders of the acquired enterprise through equity replacement.

The integration of upstream and downstream resources of enterprises can be divided into "vertical integration" and "horizontal integration".

If enterprises integrate in the direction of industrial chain, it is called vertical integration, with the purpose of controlling upstream and downstream channels such as marketing, supply and logistics. At this time, the question that enterprises should consider is: Are they in the most favorable position in the value chain? Where do you have no comparative advantage? What comparative advantage resources should be integrated? What is emphasized here is that enterprises should find their own position, do things with the most comparative advantages, and coordinate different work in all aspects.

Horizontal integration is basically aimed at the integration of the same industry, and generally adopts the way of mergers and acquisitions, mainly to expand the scale of operation, enhance market share, and strengthen the operational ability and brand image of enterprises. However, the target of this merger should also be analyzed. For example, when choosing peers, the advantages of core competitiveness should complement those of enterprises. Some enterprises have a good brand image, but their R&D and production systems are not very strong, so the target with strong R&D strength will increase the brand or market share of enterprises. Gome's acquisition of Yongle and Lenovo's acquisition of IBM were both horizontal mergers and acquisitions based on complementary advantages, and the strong alliance created today's world giants. It can be seen that the highest level of defeating opponents is also to integrate opponents.

However, whether it is the vertical integration of the industrial chain or the horizontal merger, the merger strategy of our enterprise should be based on the clear planning of the enterprise for three to five years before the capital operation. Because M&A itself can't create value, the real benefit of M&A comes from the effective integration of production factors after M&A. Enterprises will also face a series of challenges after M&A, such as whether the corporate culture can be recognized, how to integrate the new team into the original organizational structure and how to establish a new organizational structure.

More than a decade ago, TCL's acquisition of Alcatel France was a journey of integration. The core reason is the culture between different countries, which leads to great differences in corporate culture, including the incompatibility of management mode, management mode and operation mode. TCL used to operate in the way of China. The integration after the merger is more "integration" and less "integration". Instead of accepting and learning from the two cultures, TCL tried to change Alcatel's sales methods immediately, which led to the resignation of a large number of salespeople and the increasingly serious losses after the merger, until the company was once dragged into the quagmire of huge losses.

In fact, resource integration is a systematic strategy, not a knowledge point. There are also many differences in the strategies implemented by different enterprises. It is impossible to practice resource integration point by point, but many people can easily go into this misunderstanding. For example, mergers and acquisitions, simple and rude mergers and acquisitions are likely to make enterprises encounter Waterloo! Therefore, our enterprise should keep pace with the times in resource integration, because only innovative integration can create greater value for the enterprise and make "1+ 1=11"or "1+1= king".

In short, if you lack management, you can directly cooperate with the boss who is good at management; If you lack technology, find a boss who is good at technology to cooperate with; If you don't know marketing, find a boss who knows marketing. Successful people are constantly adding people to their own entrepreneurial team to make up for their own shortcomings, and don't blindly study there every day.