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Strategic Choice of Private SMEs

Strategic Choice of Private SMEs

Posted on 2013-02-15 02:04:49

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In recent years, private entrepreneurs, one of the most talked about topic is how the enterprises bigger and stronger, which has many successful examples. But on the whole, especially small and medium private enterprises are still small absolute majority, a small number of large enterprises. If we take a closer look is not difficult to find, and "small" to contact the other distinctive feature is the "local." For example: China has breweries 37,000, almost every county, and even many towns have a liquor factory, brewery. Even the largest of several wine companies, the market share is low. This does not preclude a system of reasons, can not be denied the status of the current market segmentation is also common, unified domestic market in many industries has not yet formed. But we must also see another fact that the same system environment, similar to Lenovo, Haier, Changhong, Hope Group and other companies to grow and develop a common reason is that they have a clear strategic choice. Mr. Liu had to "take the team, set strategy, with the team" as the three elements of the development association, which means food for thought. Here, we see a small business to develop the right strategy to the rapid development of the example. Star is a small-scale production and sales of electronic products, private enterprise, founded in 1996, Beijing Zhongguancun, start with only three employees when, less than 2 million worth of assets. After 6 years of painstaking efforts, and today has developed into a company with 16 subsidiaries, 300 employees, assets of nearly 2 million of the company, the company's business scope of communications, security, network applications such as 10 in several areas, operating up to 500 kinds of products. The rapid development of the company relies on a pragmatic and efficient strategic choice, relying on logistics and corporate strategy is the ability to grasp. Embodied in the five areas: 1. Good not to get involved in areas of large enterprises to survive. Small enterprises are to a large-scale series production is unrealistic, and it is not viable. Small businesses must have a clear understanding of which products are large enterprises can not produce or unwilling to production. Small business is unable to be active in the large enterprises involved in the field or unintentional, and learn to survive in these areas, and development. 2. Full use of human resources Zhongguancun Science and Technology. Star in the enterprise culture has a very strong idea: the low quality of scientific and technical personnel, we can not research and development of high quality new products in the market will not be competitive. Despite the small size of small businesses, but must be first-class technological capability in development work in the shortest possible time in order to bring products to market. Star with the Zhongguancun Science staff, gather a group of high-quality scientific and technical personnel, the company has introduced new products to meet market demand and seize several core products, continuous production, the rapid expansion of the market size, firm footing. 3. Cost control. Small business procurement of raw materials prices are generally higher than large enterprises, coupled with small scale enterprises and other reasons, overall costs can easily make more than large enterprises. Thus, small businesses must be more stringent than the large enterprises to conduct cost and price calculation. Also note that in the accounts to make up for the inevitable risks and losses caused by errors into account. In this regard, the company's product pricing strategy interstellar always adhere to the scientific principle of rationality, on the customer's purchasing requirements and capabilities are always able to make highly accurate judgments. Thus, only guarantee the product market, while ensuring the profitability of the enterprise considerable. 4. Horizontal, dependent development. In the long-term market practice, the Star the company found a shortcut for their own development, that is to seek stability in relatively large enterprises as their regular partners. In addition to production of other small businesses can not compete with you the special products, should also find one or a few large companies as their partners relatively fixed, long-term supply to their own products. In this way, their products will have stable sales, production also can maintain relative stability. 4 years after the company set up in 2000 to find a big foreign buyers, the company purchased annually from about $ 8,000,000 Star series of complementary products, which makes the company's products have a relatively fixed export routes, but also well-known enterprises been an unprecedented increase. 5. Capital operation. In 2001, the company has captured interstellar enterprise market demand for network information, in addition to the production of reliable network security products, but also provides a comprehensive set of applications based on the enterprise network marketing program, was widely welcomed by business users. In a careful assessment of market size, based on the Star company actively cooperate with foreign customers consultations on development of a comprehensive enterprise network applications searching for the ideal investment partner, two months later, relying on the industry over the years established the Star good reputation, attracting well-known U.S. World Will Systems Limited for the injection of $ 10,000,000 Star, co-founded the Star Group. With such large enterprises as a stable long-term customers, so that the rapid development of the company's future Star have a more solid guarantee. Beijing Zhongguancun "Electronics Street" more than 5,000 private enterprises, to survive more than 5 years less than 500, more than 8 years less than 150 enterprises. Star company is in the context of such a stand, and that the key is the strategic choice properly. Right now, the survival rate of private small and medium enterprises is very low, the average life expectancy is only 2.9 years. Small businesses are not afraid, afraid that can not use the small boat U-turn, a flexible mechanism that advantage. Star is in the company to fully understand their own strengths and competitive environment, adopt suitable for small enterprises such as the "caught" in the type of development strategy, business strategy and attachment type, and continue to reduce costs, strict accounting, to attract high-quality scientific and technical personnel, and continuously developed new products, enhance their competitiveness, resulting in unprecedented fierce competition in the Zhongguancun a small risk, to seek long-term development of enterprises of strategic high ground. Well, China's current system and market environment, what strategies are available which private SMEs choice? 1. The so-called resource-oriented strategy is resource-oriented strategy for small and medium enterprises rely on large enterprises in the region is not suitable for the development of the resources needed for survival and development conditions of the strategic types. Resource conditions which mainly refers to the region's unique resources, such as tourism resources, mineral resources, human resources personnel. Companies can engage in specific regions resources development, tourism services, the development of special products and handicrafts production and trade activities. 2. The so-called structure-oriented industrial strategy of the industrial structure of SMEs oriented strategy is based on changes in industrial structure and industrial structure, one aspect of the present weaknesses and formulate long-term development plans and measures. The success of this strategy lies in whether a company can seize the vacant industrial structure, or weaknesses, so that the enterprises have become the industry an integral part of the chain, resulting in stable development. Generally have the following options: (1) According to the social and economic development trends and product changes in the overall situation in the region, select on the rise, expansion phase of the industry, industry sector, to determine the direction of production and operations; (2) According to the characteristics of regional industrial structure and development to determine the direction of enterprise development; (3) Entry into new businesses, in the "frontier" areas of strengths and seek development opportunities; (4) According to the industrial structure adjustment policy guidance to determine the enterprise development strategy. 3. Dependency attaching business strategy business strategy, also known as a systematic business strategy. The so-called "dependency" is to the enterprise's production and business activities with the inclusion of relatively fixed or graft in a large enterprise or enterprise group, and became large enterprises or enterprise groups that series production is an integral part of the professional production and development services. Select by attaching the advantage of small and medium business strategy can be relatively stable supply and marketing channels, product development and direction of a more simple, clear, can play their own expertise, and to some extent to avoid the pressure of fierce market competition; other but also through joint development of collaborative relationships, relying on the technical development capabilities of large enterprises and strength to break through their own in the capital, talent, equipment, and other side constraints. 4. "Caught" in the development strategy was in reality, except for a few technology-intensive small and medium enterprises, most small and medium level of equipment, technology and development capabilities are relatively low, generally difficult to similar products in direct competition with large enterprises. In the "cracks" in the development of the strategy is to choose a combination of market development in part or edge of the area, to find less competition but also has broad prospects for some of the "gap" to open up the enterprise development space. 5. Competitive strategy of horizontal integration of the joint is the inevitable trend of globalization, competitive strategy is based on the joint development of the objective needs of SMEs, through the organization outside the enterprise and the establishment of collaborative relationships, change of SMEs disadvantage in the competition to make up for business lack of management resources development measures taken. As small and medium enterprises in market competition completely avoided and a large scale, the strength of strong business competition is not possible, market competition and survival of the fittest is the law; have to constantly enhance the competitiveness of SMEs and enhance their ability to resist risks must be take effective measures to solve a single business development of SMEs are weak in the weaknesses and shortcomings, seek survival and development. The development of private small and medium business strategy, we must first strive in the direction, type and make the best choice. In the strategic choice, they generally should follow the following principles: 1, the company's future product direction and business development strategies consistent with the principles of survival; 2, business environment and business strategy consistent with the specific principles; 3, the potential core competence business consistent with the principles of business strategy; 4 the principles of various types of optimizing selection. The twenty-first century is an era of change, the attitude of maintaining the status quo can no longer cope with a flood of fierce competition, only through the use of strategies to seize the opportunity to live each shift. This is a strategy to talk about taste nearly as good times, it was a talk about strategies to not show the era of corporate strength, there is no doubt that this was a strategic victory of the era. Those who simply had a chance to talk about strategies of enterprises and entrepreneurs, the chances of failure are always there for anytime, anywhere. We must re-examine and to pay more attention to strategy in the enterprise survival and development in the leading role, because the strategy is not a problem, and strategic problems enterprises will have drowned.

2013-02-15 02:04:49