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“Strategy” or “survival”
Release time:2006-11-12 Browse times:1455


Recently, more and more Chinese enterprises, especially the private enterprise are shocked. More foreign clients are willing to give the order to them but without raising the price. However, producing according to the original price is impossible. It’s really a suffering thing to lose such opportunities. 

Many entrepreneurs get confused. Although many people know the trend of enterprises’ strategic development and global economic integration, when it does come, many entrepreneurs start to feel nothing can be done.

In fact, when we talk about self-owned brand, self-innovation, it’s really a long cause. As the Chinese private-owned enterprises, how to obtain balance between brand strategy and innovative living, as well as harmonious promoting?

The challenge of new strategic framework

Although the entrepreneurs are very hard working at the beginning, a speech ticket by a well-known economist with the value of thousand yuan will still hard to get. However, after hearing the speeches of so many economists, these entrepreneurs can’t help to worry about their own enterprises. On the one side, it needs lots of talents, capital and the soil for development, as well as the strategies that others can’t reach. On the other side, the traditional industry needs lots of labors, cheap raw materials and the orders to keep the normal operation of the enterprise. So, in face of the pressing need of transfer, the private enterprises with characteristics of loose, singleness and low-cost competition don’t know how to choose between them.

What is strategy? It is the important choice after a long and thoughtful preparation. Then, do our entrepreneurs have such kind of strategic thought and insight? Toshiba Company of Japan in 1980s put in TV ads by the singing of children, which confused many people. Why using children’s voice, children are not the clients of Toshiba Company. But people from Toshiba Company say, our products the children can’t afford, including the adults. However, when these children grow up, they become the clients who can afford it. That’s the strategic insight of the Japanese entrepreneurs.

Chinese enterprises lack of the habit of making normative strategy. Now under the global thoughts of carrying out enterprise strategic framework, they must change original thinking mode and accept new cultural ideas and management thoughts. In the new competitive era, new strategic framework is to overall planning the markets at home and abroad. It’s a big challenge for the chinese entrepreneurs who’re still growing.

The most active private enterprises in the present chinese market actually face the restriction of self capital capacity and managerial ability. Enterprises which want sustainable development must admit new capital and talents, and cultivate mechanism and culture which can continuously innovate. However, all of these put forward two strategic themes for chinese enterprises, that is, self-brand internationalization and self innovation industrialization.

In the global market competition, brand is the competitive weapon for an enterprise to reach a certain degree. Professor Zhang Weiying analyses in the past chinese enterprises how to survive and develop, putting forward five reasons: 1. Cheap resources. In the past why so many enterprises can make profits, one of its important reason is that the low payment can make use of good resources. Take the cost of human resources as an example, which is very cheap, so as other resources. 2. Government protectio. Some enterprises, especially the private enterprises, can develop rapidly in the regional economy, to a great extent depending on the protection of local government.Some enteprises fake commodities to imitate, then to change into itself. 3. Working hard. We have many private enterprises, from bosses to employees, all working hard to earn money. They work over ten hours a day in the whole week. The foreignes can’t compare with us from this point of view. However, in the market economy, this kind of advantage can’t be the element for keeping sustainable development of the enterprise. 4. Low cost management. Enterprise management like workshop style and family style strengthen the enterprises’ profitability. 5. Unique products. The development of products with chinese characteristics which some foreign enterprises are lack of, makes the enterprise itself having some advantage.

However, our enterprises must face a fact. With the aggravation of the integrated trend of global economy andcumture, all the competitive advantage mentioned above will gradually dispear. Facing the grave crisis, chinese enterprises much have strategic ideas and insights, forming the strategic planning belongs to chinese enterprise characteristics amd its culture. Besides, learning to realize innovative survival from the strategic thoughts is a must subject.

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