How do enterprises maintain their core competitiveness? Why are some enterprises short-lived, some fall halfway, and some ups and downs still alive? The reason is that the core competitiveness is extremely maintained. For example, in 1896, the Dow Jones Industrial Average was selected as the first batch of 12 well-known companies, leaving only ge. For example, Giant Group, Longfei Group, Asia Group and Qin Chi Group, which were once brilliant in China, have all disappeared now ... No one will doubt that they once had strong core competitiveness. Its prosperity and decline are only due to the loss of core competitiveness or "gain and loss". Therefore, maintaining core competitiveness is an important issue for every enterprise, especially those that have achieved success. First, stick to the main business and be cautious about diversification. The first common reason for the loss of core competitiveness is blindness and excessive diversification. Deviating from one's core expertise, the result is a presumptuous guest usurps the host's role, and the advantage is no longer there. For example, Giant Group started from the IT industry and once decided to be IBM in China; Later, it became a nutritious food "brain gold" and later became real estate. It was demolished to build a 70-story giant building and was dragged over. Another example is the listed company Monkey King Group, whose main industry is made in covered electrode. Because the listing raised a lot of money, it began to heat up and expand blindly, and soon it involved dozens of unrelated industries and became the local "comprehensive industrial bureau" and "second economic commission" As a result, it is on the verge of bankruptcy ... most successful enterprises insist on two words: focus, or else. Most of the world's top 500 enterprises have developed on the road of specialization, and they are industry leaders and giants dominated by one industry. Even a few diversified enterprises, such as GE, made their fortune by specialization (a light bulb factory has been doing it for decades), and now it only maintains its advantages in a few industries. Of course, being cautious about diversity does not mean rejecting diversity completely. Rational diversification should follow the following principles: ① diversification based on an industry; (2) Related diversification, such as Canon's involvement in camera, copier, laser printer, scanner, fax machine and other related industries around its optical core technology, and Haier's core competence in refrigerator has been extended to various household appliances such as air conditioners, washing machines and color TVs; (3) Limited diversification (not "pan-diversification"), for example, GE finally chose to develop only a few advantageous industries; (4) Excessive diversification, mostly to meet the needs of transformation, such as military to civilian, old to new, military and civilian may coexist in the middle, but once the transformation is completed, it is necessary to establish new core expertise. Second, take advantage of core advantages and correctly grasp business opportunities, resulting in the loss of core competitiveness. The second common reason is to believe in what to do to make money, seek business opportunities everywhere, and blindly chase hot industries and hot fields, such as real estate fever, entertainment city fever, border trade fever, Hainan fever, fresh water fever ... how many enterprises have died and how much money has been locked in. According to incomplete statistics, the wave of real estate development from 1992 to 1993 killed hundreds of billions of funds from all over the country in Hainan alone, leaving a lot of idle land, dilapidated buildings and painful lessons. Expanding investment can't just be "hot". On the contrary, the more you face hot areas and hot industries, the more calm and prudent you must be. Which is more important, using your own expertise or grasping external business opportunities? The former, of course. Business opportunities do not necessarily belong to themselves. Only when business opportunities coincide with their core expertise can they belong to themselves. For example, the motorcycle market in Vietnam is in great demand, which is a business opportunity for Jialing and Lifan, but not necessarily for SEG and Wanda. The popularization of color TVs there has just begun, and a large number of small-screen color TVs are needed, which is a business opportunity for TCL, but not for China Merchants. Third, adhere to the combination with entrepreneurship to prevent the loss of core competitiveness caused by core rigidity. The third common reason is core stiffness. Core rigidity is to solidify, myth and dogmatize an enterprise's existing advantages or temporary successful experience. Today can only copy yesterday, not cross the line. Core rigidity will make enterprises inert, slow, conservative and "path dependence" stifle innovation and vitality, and make them lose their market adaptability and environmental adaptability. For example, other 1 1 famous industrial companies that became Dow components at the same time with GE gradually went out one by one in more than 100 years, just because they didn't constantly adjust themselves in a rapidly changing environment like GE and made efforts to innovate, which was led to failure by "core rigidity". Persistence means keeping past successful practices, experiences and "routines" in your career and sticking to your existing advantages and achievements. But if it is too conservative, it will become old-fashioned and conservative, leading to the rigidity of the core and stopping innovation. The correct way is to persist in combining with innovation, innovate on the basis of adhering to the original advantages and core expertise, strengthen their core expertise and advantages in the process of continuous innovation, and enhance their core competitiveness. Fourth, classification and classification management to prevent the loss of key elements leading to the loss of core competitiveness The fourth common reason is the loss of key elements. For example, core team members or technical and business backbones are poached, and the resulting loss of core technologies, core management methods and core values. Some people even took away their core expertise. For example, the sales manager of a factory holds the lifeblood of the enterprise-all customer relationships. After gradually understanding the core production technology and passing through several technical backbones, he pulled the team out and set up another portal; He took away two key core resources of the enterprise-customers and technology, which led to the rapid closure of the factory.

The way to prevent the loss of key elements is to implement classified and hierarchical control. First, core technologies, core business secrets, core information, core data, core plans, core equipment, etc. They are all controlled at the first level, and the smaller the scope of knowledge and mastery, the better. It is said that only two people have mastered the core formula used by thousands of Coca-Cola canning plants around the world, and they can't take the same plane to avoid losing the formula in case of an air crash. Whether this rumor is true or not, it is very important for enterprises to keep the core technology and information confidential. Moreover, China has a tradition of ancestral secret recipes and unique skills. The second is to establish and improve the internal control mechanism of core elements, just like the accounting cashier system in finance, which can't let a person or a department independently control all the core elements of an enterprise; The third is to establish the interest-related mechanism between core team members and core talents, such as allowing them to hold shares, exercising stock options and establishing internal supplementary endowment insurance. Five, moderate expansion to avoid excessive dilution of core competence. The fifth common reason for the loss of core competitiveness is that the enterprise expands too fast and the cost is too low, and as a result, the core competitiveness is diluted. Low-cost mergers and acquisitions and expansion are shortcuts for enterprises to become stronger and bigger. However, M&A and expansion need to export their core competencies (blood and bone marrow) to each other, so the more you merge, the more you output, the more "diluted" the output, and the worse the expansion effect; Once it is beyond its capacity, it will collapse and be dragged over. At the beginning of the reform, due to the success of Shijiazhuang paper mill, Ma Shengli took over more than a dozen troubled paper mills in China. As a result, the backbone of the mother factory was assigned to each factory as a leader, and Ma himself was too busy to attend to. In the end, he only ended up with a "crash and burn" ending. Another example is the brand-name bicycle Phoenix and Forever, which was once trusted by consumers in China. In the mid-1960s, it merged or joined with dozens of bicycle factories in China, and most bicycle factories in China became branches of Phoenix and Forever overnight. Bicycles all over the country are mixed together, and most of them have changed their surnames to Phoenix and Forever, which leads to the complete confusion between these two famous brands in China. The so-called moderate expansion means that the expansion speed and scale of the enterprise should adapt to its own bearing capacity and digestive capacity, and develop step by step and rolling. For example, it took CIMC several years to gradually complete its M&A plan, and now it has grown into a national and even global industry leader.

Sixth, improve the system to ensure that the inheritance of rights leads to the loss of core competitiveness. The sixth common reason is that the core competence of an enterprise relies too much on individuals and stops with the change of leaders or the decline of competence. Because entrepreneurs play a key role in the process of cultivating the core competence of enterprises, the departure or degradation of entrepreneurs will often fundamentally shake the core competence of enterprises. For example, the "accidents" of Jun Shi Jian, Yu Zhian and Liu Xiaoqing all affected the core competitiveness of their enterprises to varying degrees, and some even went bankrupt. Solving this problem depends on establishing and perfecting modern enterprise system. The establishment of modern enterprise system can ensure the smooth transition and diffusion of management power (always the right person undertakes to perform his duties at the right time). Excellent professional managers like Iacocca and Welch were born under this mechanism. This also shows that we can't equate the core competence of enterprises with entrepreneurship, and we can't confuse organizational competence with individual competence. In fact, only by cultivating a set of knowledge, skills, experience and mechanisms that do not depend on one person, including entrepreneurs, can enterprises truly have the core competitiveness that supports the development of the cause for a long time.

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Modern society is an era of competition and cooperation, and cooperation and competition are becoming more and more important. We must cooperate internally and compete externally. However, if we don't have our own advantages, others won't come to us for cooperation. So how can we improve our competitive advantage? 1, the competitive advantage comes from your customers' great demand, but your competitors can't or don't want to do it, and they don't do as well as you. Because only in this way can we improve our advantages. 2. If you meet your own needs, you can realize others' dreams. Whenever we need something that others can't do or don't do well or don't do well, that's where we need to work hard, because whenever we say what we need, it means that others need it. 3. Have irreplaceable professional ability and very popular personality traits, so keep learning and constantly improve yourself. We should pull what is on the edge to the edge, and then turn it into a normal state, preferably a life form. Because anyone who can create new life forms can create his own wealth. When we start our own business, we must be standardized, scientific and humanized. These three are indispensable, and only in this way can our products be better marketed (because marketing is always better than sales). In particular, some things of the company must be visual, audio-visual, graphic and literal. Just after a very capable person in our company left, we can refer to the information he left before. For example, in the catering industry, a chef left. If we didn't leave any information and he didn't share his things with everyone, then our restaurant couldn't cook this dish. 6. We should take opportunities that have not been cooperated, services that have not been provided, inventions that have not been created, values that have not been publicized, and resources that have not been exchanged as references to improve our competitive advantage. Also, we should remember that saving time for customers is also a basis for creating wealth for ourselves.

The above contents are for reference only!