Gree air conditioning is the only large household appliance enterprise that adheres to the professional management strategy. According to the news published in the Chinese edition of Fortune, a well-known financial magazine, Gree Electric, as a leading enterprise in China's air-conditioning industry, ranked 46th again with its operating income of $795.9 million, net profit of $55 million and market value of $646/kloc-0.1 billion, and was selected as "Top 100 Enterprises in China" by Fortune magazine, becoming one of the enterprises selected for two consecutive years. Not only a number of financial indicators are in the forefront of home appliance enterprises, but in 2002, when the air-conditioning market as a whole was depressed, Gree air-conditioning sales achieved steady growth, with sales volume increasing by 20%, sales volume and net profit all improved to varying degrees, and achieved good economic benefits, fully demonstrating the charm of professional management.
Porter once pointed out the strategic principle that "the effective implementation of any kind of strategy usually requires all-out efforts". The strategic consequence of "if an enterprise has more than one basic goal, these resources will be dispersed" is pointed out. Because of this, many enterprises have chosen and determined their own professional development strategy in business wars, and have achieved obvious economic benefits by using this development strategy. Gree is such a company.
Gree's specialization strategy is not a "basket of eggs" strategy. It is completely theoretical and logical to regard the specialization strategy as a "basket of eggs" strategy. By the end of 20 13, when many manufacturers were struggling for the outlet of their products, and even offering the banner of price reduction to attract consumers' attention, Gree introduced a new high-end and luxurious air conditioner-"Digital 2000" to large and medium-sized cities such as Beijing, Guangzhou, Shanghai and Chongqing. With its intelligent human body sensing function, safe and environmentally-friendly carbon monoxide monitoring function and unique design, it is deeply loved by consumers all over the world, especially middle-and high-class consumers.
Why does the expensive Gree Digital 2000 sell well in the off-season when many air conditioners are cutting prices? Just because Gree Digital 2000 is no longer an "ordinary basket of eggs". Its advantage lies in the adoption of two new technologies, namely, human body induction and carbon monoxide induction, which are original in the world, so that the air conditioner has entered the perception era and has two advantages, namely, intelligence and environmental protection. As soon as you open the door, you don't have to start work, and the air conditioner will automatically turn on, and a cool breeze or warmth will follow; When you forget to turn off the air conditioner or there is no activity in the room, the air conditioner will automatically turn off; Air conditioning can also sense the content of indoor toxic gas-carbon monoxide. When it is about to reach the concentration harmful to human health, it will automatically and continuously sound like a buzzer to remind you to open the doors and windows for ventilation and reduce the occurrence of "gas poisoning". Not only that, this product also applies international leading technologies such as "color backlight liquid crystal display technology", "plastic appearance electroplating insert technology" and "DC frequency conversion technology" to Gree Digital 2000 for the first time in the world. Digital 2000, a new product with many new technologies, not only has excellent functions and beautiful appearance, but also has super stability skills after five years of technical research and more than 360 days of reliability test in harsh environment.
Facts eloquently show that Gree, which has always insisted on specialized operation in the face of chaotic competition in the air-conditioning market, has not only covered 10 categories, more than 50 series and more than 500 varieties and specifications in the field of household air-conditioning and commercial air-conditioning, but also become the air-conditioning manufacturer with the most complete varieties and varieties in China, forming a leading position in the industry and fully demonstrating the professional technology of the enterprise 10 years.
If Gree has made impressive achievements in business, then first of all, Gree has made achievements in its development strategy. This kind of achievement is outstanding in their profound understanding of the specialization strategy, firm implementation and accurate grasp in practice.
EMC's Specialization Strategy
EMC Group in China has been booming since the third quarter of 2000, and its growth rate has remained above 1oo%. The performance in 200 1 year increased by nearly 200% compared with the previous year. Since February, 2002, EMC began to go astray, and started a "never ending" business roadshow in more than a dozen large and medium-sized cities across the country, promoting EMC's storage concept to some well-known financial, telecommunications, manufacturing and government. This is a very difficult battle. EMC faces several powerful forces, such as IBM, HP, Compaq and SUN. Compared with competitors, EMC's leading position stems from its specialization strategy.
"Focus" or "single-minded" has become the most important rule in EMC's eyes. According to Guo Zunhua, President of EMC China, peers including IBM, Hewlett-Packard, SUN, Compaq and Hitachi have more advantages in popularity than EMC, because they entered China earlier and have a wider range of products. Compared with these lT giants, EMC is a small enterprise, with a total number of 1.6 million, IBM 500,000 and Cisco 30,000. But EMC only focuses on storage, which is one of its magic weapons. However, its weakness is inevitable, because it has no other resources to supplement and coordinate-Compaq can bundle storage products on servers and sell them together, using the original sales channels-EMC does not have such resource advantages.
EMC's specialization strategy is embodied in the following aspects:
(1) specializes in germanium storage products.
Looking back at the history of EMC, it is not difficult to find that it has led the development trend of storage products four times because of its commitment to storage. The first time, the hardware age. The Symmetrix storage system introduced in 1990 has brought storage into the era of rapid hardware development. Symrnetrix is an intelligent information storage system based on small commercial hard disk array. EMC was the first company to offer this product. 1995, EMC expanded the technology of Symmetrix and introduced the first platform-independent storage system, which can support all mainstream computer operating systems at the same time. The second time, the software age. From 1994, EMC began to invest a lot of energy in software performance, and in that year, it launched symmetrixremotedatafacity(SRDF) mirroring software, bringing storage into the software era. By 20 13, EMC had more than 20 creative software solutions, including PowerPath, TimeFinder and EMCControlCenter, and became one of the largest and fastest-growing software companies in the world. The third time, the Internet age. In 2000, EMC turned its attention to the development trend of network information storage, and launched the solution and product series of SAN\NAs, which promoted the development of network storage. Users can use it to build different storage devices, switches, hubs and servers into a single information infrastructure that is easy to manage. The fourth time, the management era. At the end of 200 1 year, in view of the fact that enterprise users need to invest less manpower and complete more work, EMC launched AutllS strategy, that is, AutomatedlnforrnationStorage scheme, to meet the urgent needs of enterprise users for the simplicity of system management. This is an automatic information storage strategy with cross-era significance, which promotes storage to management level and provides users with an "automated, simplified and open" storage environment.
(2) Unique exclusive service chain
EMC has always advocated the service concept of "cost center". The standard to measure the profit center is whether you can make a profit first. Once an enterprise is in a bad business situation, it will change its business model, reduce costs or even cancel departments. However, if the service is the cost center, the company will continue to invest in customer service department as always, even though the cost of labor, real estate and inventory is being reduced.
EMC's service procedure is generally as follows: first, communicate with customers, understand their needs, and feed them back to R&D department to produce products that customers need. At the same time, EMC will also train customers-facing employees such as sales teams and system engineers, so that they are more capable of providing suggestions and opinions to customers and solving problems for them. Moreover, EMC also links the salary of employees with customer satisfaction, and if the satisfaction reaches a certain level, employees can get corresponding bonuses. EMC has also set standards for customer service departments, such as the limited time to arrive at the customer's location, and so on. EMC has a step-by-step reporting system. If there is any problem, it will be reported step by step according to the system, and the highest can be reported to the president and CEO of EMC.
EMC is very focused on storage and has never been distracted. So far, EMC's market development strength and services are 100% concentrated in this field, and its investment in R&D resources is also focused on this, which is more than the sum of several competitors.
In EMC's corporate culture, the explanation of strategy is: not only know what to do, but more importantly know what to stop doing.