www射-国产免费一级-欧美福利-亚洲成人福利-成人一区在线观看-亚州成人

USEUROPEAFRICAASIA 中文雙語Fran?ais
Business
Home / Business / View

Building on past successes

By Mike Bastin | China Daily | Updated: 2013-07-11 07:31

Building on past successes
Lenovo Group Ltd is among the many Chinese companies that have expanded overseas. [Photo / Provided to China Daily]

Modifications to business models needed for brands to achieve long-term development

Beijing recently played host to the Third Global Think Tank Summit and, not surprisingly, China's economic development model topped the agenda.

Once again strong arguments were presented for complete and total change in the low-cost business model still pursued by many Chinese companies. Widely respected authorities from government and industry unanimously echoed this need for change, claiming that economic growth would not continue at such rapid pace unless a major shift takes place - and soon.

Over recent years many have also cited a lack of business success internationally as a major concern for China's long-term development. Even the most well-known Chinese brands such as Haier Group and Lenovo Group Ltd remain barely visible on the international brand-awareness radar.

But perhaps it is also important for China's future to reflect briefly on the incredible, even miraculous, speed of economic emergence. China's growth record since the commencement of China's "open door" policy in the late 1970s is the envy of the world - and not just the developed world. Other fast developing nations such as India, Russia and Brazil have been completely outpaced by China. China's recent, more modest gross domestic product figures of around 7.5 to 8 percent still trump India and Brazil's recent efforts with neither managing to report GDP much above 5 percent.

Chinese companies have outperformed those from other developing nations and this should also be presented when arguing for change in any business model. Instead of what appear to be clarion calls for an about-turn, it is vital to portray the strengths behind China's impressive and unprecedented economic progress. These strengths include the speed with which foreign direct investment has been leveraged to increase efficiencies in production and distribution. Establishing and maintaining a low production-cost competitive advantage is still often presented as simplistic and unsustainable. But achieving the lowest-cost position while producing more and more is not at all simple. If it were so, then why have India, Russia and Brazil not fared better?

Chinese industry should, therefore, receive praise for its immense contribution over the last few decades.

Rather than sweeping away the performance of many Chinese companies over the last few decades, the key to continued success lies in building on these strengths. Instead of these rather pessimistic prognoses, commentators should be outlining the steps necessary to build on this solid economic platform now in place across China.

Many of the most famous brand producers, such as H.J. Heinz Co and Nestle SA, started out with the aim of possessing a low cost competitive advantage. Indeed, many of these still produce at low cost for non-branded competitors. Clearly, the disciplines required to achieve efficiencies in production and distribution are also those behind any expansion into the more profitable and sustainable price-insensitive market for branded produce.

It is also the case that corporate expansion almost inevitably involves the establishment of a portfolio of products and brands where each line and even item occupies a quite distinct and different market position. The success of Chinese companies in the low cost/price category should, therefore, not be seen as a weakness but rather as a key building block from which an impressive portfolio will emerge.

It is the balanced nature of this portfolio that is key to sustainable competitive advantage. Premium brands, especially those that aim to evoke exclusivity, also present limitations to future growth. Exclusivity and mass production and consumption will always experience an internecine relationship.

Chinese companies are, however, over-reliant on low cost positioning so plans for - and implementation of - a hybrid strategy should be firmly in place. But the firm foundations of efficiency and cost control have been laid and the importance of this building block cannot be underestimated.

Many have consistently called for more innovation within Chinese companies but creativity can only succeed once firm control is in place. Such cost controls and efficiency were also considerably innovative, new features of Chinese management after the one-child policy was introduced.

Innovation is nothing new, therefore, to Chinese companies, which have worked so well with foreign companies and foreign direct investment. It is now, however, the time for the next phase in innovation, which not only further solidifies a low-cost, efficient corporate culture but which also complements this with a brand-building mentality that permeates every organizational level.

The steps needed to pursue this path to a more balanced portfolio will vary from industry to industry and from company to company. Each individual company possesses a unique culture in which change has to be compatible.

But key to any successful, lasting change in any business model is self-belief and determination within Chinese management. It is the undisputed and unequivocal successes over recent decades that should fuel this mind-set.

The author is a visiting professor at the University of International Business and Economics in Beijing and a researcher at Nottingham University's School of Contemporary Chinese Studies.

 

Most Viewed in 24 Hours
Copyright 1995 - . All rights reserved. The content (including but not limited to text, photo, multimedia information, etc) published in this site belongs to China Daily Information Co (CDIC). Without written authorization from CDIC, such content shall not be republished or used in any form. Note: Browsers with 1024*768 or higher resolution are suggested for this site.
License for publishing multimedia online 0108263

Registration Number: 130349
FOLLOW US
 
主站蜘蛛池模板: 久久99九九99九九精品 | 欧美一级毛片免费播放器 | 黄毛片一级毛片 | 成年女人午夜免费视频 | 色综合色狠狠天天久久婷婷基地 | 91久久精品国产一区二区 | 国产精品综合久成人 | 美女被cao免费看在线看网站 | 亚洲 午夜在线一区 | 国产精品一区二区资源 | 国产一级淫片a免费播放口之 | 天堂视频网站 | 久久网在线 | 欧美成人免费在线观看 | 男人天堂视频在线 | 国产成人在线免费 | 九九九九在线视频播放 | 国产中文字幕在线免费观看 | 青青草国产免费一区二区 | 国产成人综合手机在线播放 | 日韩精品一区二区三区在线观看l | 亚洲综合性 | 午夜亚洲| 明星国产欧美日韩在线观看 | 国产成人亚洲日本精品 | 亚洲国产精品久久久天堂 | 九九99在线视频 | 国产一区二区三区久久 | 加勒比毛片| 在线欧美日韩精品一区二区 | 国产一区二区三区在线视频 | 日本精品久久久久久久久免费 | 美女张开双腿让男人桶 | 欧美成 人h版在线观看 | 女人抠逼视频 | 国产欧美日韩精品第三区 | 亚洲一区二区三区一品精 | 精品亚洲永久免费精品 | 午夜mm131美女做爰视频 | 日韩第一视频 | 国产精品久久久久久久久久久威 |