How do China enterprises make strategic transformation?

What is the strategic transformation strategy of enterprises? Generally speaking, the strategy is to take a systematic route. Transformation means taking the market route; Upgrading means taking a professional route. Strategic transformation and upgrading is to solve the problem of "overtaking in corners" of enterprises. To solve the strategic transformation of enterprises, on the one hand, we should clearly understand the crisis background in which enterprises are now located; On the other hand, it is a macro-level problem to deeply understand the ultimate development trend of enterprises. Only by answering these two questions can we clarify the direction of strategic transformation of enterprises and truly find the coordinates of enterprises.

Why do China enterprises need strategic transformation and upgrading?

The strategic transformation and upgrading of Chinese enterprises is closely related to the current era and social background. At present, the times are full of crises, and every enterprise is facing a crisis, but different enterprises are facing different crises, and the degree of crisis is also different. Especially affected by the COVID-19 epidemic, many enterprises are under great pressure to close down.

Whether it is Lenovo, Haier, Suning, or small and medium-sized enterprises struggling on the line of life and death, they all hope to break through the predicament and turn the crisis into an opportunity for upgrading. It can be said that strategic transformation and upgrading is the theme of this era and society.

Enterprise comprehensive strategic transformation and upgrading mode diagram

The direction of enterprise strategic transformation

Where will China's enterprises go in the end? Simply put, the United States today is the China of the future. The market economy follows the law of its own development and is independent of anyone's will. History has proved that China today is the United States in the past; History will once again prove that today's United States is the future China. Due to the phenomenon of "industrial flow" in the world market system, industrial flow has been going on and never stopped.

After the Second Industrial Revolution, from Europe and the United States to the United States and the Soviet Union for hegemony, to the United States, Europe and Japan, to the rise of the four little dragons in Asia-Japan, South Korea, China, Taiwan Province Province of China and Hong Kong, China-and now to the BRIC countries-Russia, China, India and Brazil, we can see that the flow of "industrial flows" is roughly the same.

It can be inferred that the next direction of world industry will be Southeast Asia, the Middle East and Africa. In fact, this trend has gradually emerged.

The Direction of Enterprise Strategic Transformation —— Micro-interpretation

From the microscopic point of view, the front end of "industrial flow"-developed countries mainly control the high end of industrial chain, such as R&D, brand and design. These links have higher added value and control the right to speak of products. The back-end countries of "industrial flow" control the low-end of the industrial chain. Typical performance is that China, as the current "world factory", is mainly responsible for production and other links, while the added value of production and other links is relatively low, and it is in a weak position in the world price system.

The phenomenon of "industrial mobility" in the world economy is fundamentally determined by the resources and costs of a country or a place, and it can also be said that it is determined by the capitalist mode of production. The capitalist mode of production itself requires the optimal allocation of resources and the maximization of profits, which is particularly prominent under the background of world integration and economic globalization. The development of industry inevitably involves the development and utilization of resources, including raw materials, land and labor. When the industrial economy develops to a certain extent, enterprises will master certain capital, technology and market, and the exploitation and utilization of resources will lead to the shortage of resources. At this time, the cost of raw materials, land and labor will increase. The first developed industrialized countries have an inherent impulse to pursue global expansion to maximize profits: in order to find cheaper raw materials, land and labor to reduce costs and expand the product sales market, they will naturally choose to move their factories to more suitable places. Therefore, in the world, the industry must be mobile, and the resources and costs of a country ultimately determine the actual flow of the industry, and these two conditions must be followed.

The market is a rapidly changing place. For enterprises, what they want to know most is, of course, the change of consumer demand. The experience of daily life tells us that our freshness for something is gradually decreasing. When the novelty is gone, that is, when the product is going downhill. This is an inevitability of product upgrading from a micro perspective.

The Direction of Enterprise Strategic Transformation —— Macro Interpretation

From a macro perspective, after 40 years of development, every industry in China has matured, and standardized operation has become an inevitable choice for reality. Benchmark enterprises have also been born in every industry. Although the number of small and medium-sized enterprises still occupies an absolute advantage, to accept the above reality and trend, we can no longer adhere to the survival concept of the law of the jungle (robber thinking). This "bandit concept" is reflected in the image that enterprises are small workshop-style factories and inferior products. This kind of idea and behavior has a market in the era of poverty and backwardness and material shortage. In today's era of relatively high living standards, it is out of date, and the consumption requirements of ordinary people have increased. This is the reality seen from the macro level: the consumer market has upgraded. This means that we are about to enter the era of brand consumption.

This paper briefly explains the reasons of enterprise product upgrading from both micro and macro perspectives. Product upgrading is the core of the whole enterprise transformation and upgrading, which can be directly reflected from the model diagram of enterprise strategic transformation and upgrading. The product upgrade needs many actions to push it to completion. In the strategic transformation and upgrading of enterprises, after understanding their own "coordinates", we must also understand the origin of business. Only by clearly understanding the origin of business can we have a deeper understanding of the strategic transformation and upgrading of enterprises.

How should enterprises carry out strategic transformation and upgrading?

The bosses of many enterprises can't do anything about it. In fact, whether it is the production of tangible products or intangible products, no matter what kind of business model and business model the enterprise is, it is a very simple model-the relationship between buying and selling.

The exchange of primitive people is to exchange things, such as exchanging a sheep for someone else's stone axe. The emergence of money is the inevitable product of the development of commodity exchange to a certain stage. Since the commodity exchange came into being, an important principle of commodity exchange is to follow the principle of equivalent exchange. Buying and selling is the earliest and most basic trading behavior of human beings. The most primitive theory of economics is exchange relationship. The birth of economy begins with exchange, and products are just carriers.

Regarding the enterprise transformation strategy, Zhengrui Consulting believes that it can be carried out from eleven aspects, such as product upgrade, marketing upgrade, customer upgrade, brand upgrade, R&D upgrade, production upgrade, supply chain upgrade, business model upgrade, management model upgrade, team upgrade and corporate culture upgrade. However, it should be noted that the status quo of different enterprises in different industries is different, and the enterprise transformation strategy needs to be tailored to meet the strategic transformation and upgrading plan of the enterprise on the basis of enterprise system diagnosis. Interested friends can go to Zhengrui Consulting official website to learn about strategic management consulting services.