Case: K Group's New Industry Entry Strategy
In the early 1990s, the competition in China color TV market was fierce. K Group, which is famous for producing communication products, boldly entered the color TV industry, and 1996 ranked third in China's color TV industry and ninth in China's electronics industry. The production and sales of traditional products continued to rank first in the country with remarkable achievements.
(1) Industry choice: 50% success or failure.
Judging from the resource correlation between communication products and color TV sets, technology has a low correlation with production resources, a medium correlation with brand resources and a high correlation with sales resources.
Judging from the attractiveness of the industry, in the early 1990 s, the overall attractiveness of China's color TV industry was not great: the supply of products exceeded demand; The market competition is fierce; The government liberalized the price control of color TV sets, and the color TV industry entered a market-oriented period. On the premise that the industry as a whole is unattractive, K Group has found an attractive product market: large-screen color TV after extensive and in-depth market research. This is the first factor of K Group's success, the market-product selection strategy.
In the process of developing new products, K Group analyzes the advantages and disadvantages of similar products at home and abroad according to the demand of China market, and wants to find a unique design route: compared with imported products, it reduces some expensive devices and functions that are not needed in China market, thus greatly reducing the cost; Compared with domestic products, the main direction is the circuit design, shell style, multi-system and full-function remote controller used in China, which improves the quality level of products.
(B) entry mode: foster strengths and avoid weaknesses
K group did not take the old road of building its own factory, but adopted the joint venture production mode. After investigation and analysis, K Group chose an electronics group in Hong Kong as its partner. This kind of cooperation has formed a relationship in which the two sides foster strengths and avoid weaknesses, and their advantages complement each other.
By cooperating with electronics group, K Group has launched large-screen color TV sets to the domestic market on a large scale. In the process of promoting the "planned marketing" strategy, the market share is increasing.
(C) North-South merger: consolidating market position
The success of K Group in entering the big-screen color TV market has driven many domestic color TV manufacturers to join the market competition. The color TV industry has entered the stage of scale competition.
In order to consolidate and improve its market position, K Group merged several enterprises and further expanded its production scale.
Question:
How did 1.K group analyze the color TV market in the process of strategic shift?
2. What risks does K Group face when it enters the color TV market?
3. Why is K Group's entry into the color TV market a successful application of enterprise expansion strategy?
4. How did K Group realize its strengths and avoid weaknesses in product structure adjustment?
Key points of case analysis:
1 How did it happen? Analysis of color TV market in the strategic shift of K Group?
A: ① Analysis of color TV industry: The overall supply exceeds demand, but the demand analysis of product varieties shows that large-screen color TV is attractive and has broad prospects in the future. Mainly due to the increase of A's income and the improvement of life quality; B update requirements for home color TV;
C. the expansion of family living area has created the demand for large-screen color TV sets; D. the needs of newly married families;
Therefore, under the general trend that the color TV industry is not optimistic, K Group found and found the market demand and product opportunities.
2. What risks does K Group face when it enters the color TV market?
Answer; ① Competitive risk: the color TV market is liberalized, the entry threshold is low, and a large number of competitors join the production of large-screen color TVs, which reduces the industry profit level and market share.
② Price risk. Because of competition, the sales price of large-screen color TV sets fell, resulting in a decline in income.
③ Risks of substitute products (large screen computers and notebooks will occupy a part of the market share)
④ Operational risk.
3. Why is K Group's entry into the color TV market a successful application of enterprise expansion strategy? 4. How did K Group realize its strengths and avoid weaknesses in product structure adjustment?
A: ①K Group developed from communication to color TV, grasped the differences and related relations between brand and sales, completed the launch of new series products in the original market and new market, and achieved strategic expansion.
K group did not take the old road of building its own factory, but adopted the joint venture production mode. After investigation and analysis, K Group chose an electronics group in Hong Kong as its partner. This kind of cooperation has formed a relationship in which the two sides foster strengths and avoid weaknesses, and their advantages complement each other.
By cooperating with electronics group, K Group has launched large-screen color TV sets to the domestic market on a large scale. In the process of promoting the "planned marketing" strategy, the market share has been increasing. In the early 1990s, the competition in China color TV market was fierce. K Group, which is famous for producing communication products, boldly entered the color TV industry, ranking third in China color TV industry and ninth in China electronics industry with 1996, and the production and sales of traditional products continued to rank first in the country. The above performance shows that this strategy is successful.
The above is a case study of the 202 1 MBA management entrance exam: management strategy. I don't know if you have learned it. In fact, practice makes perfect. As long as you practice a lot, it is possible to get high marks in case analysis. Come on!
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