Author |Li Chengdong.
Dong Ge Notes 115 Issue:
If there is no differentiation, it will inevitably roll!Those who don't have a moat are swimming naked!Now the whole industry is playing differentiation, don't play without differentiation!
At a time when homogenization is becoming more and more serious, any little bit of differentiation will be magnified, and this is the opportunity.
Some great entrepreneurs have summed up some successful life experiences, such as focus, perseverance, diligence, etc., we all agree, but in life, most people will still be distracted, give up halfway, speculate, and let themselves become mediocre. For example, Warren Buffett's investment theory is very simple, and the vast majority of investors seem to agree with it, but in practice, the vast majority of people will still choose to speculate and fall into losses.
50% would mean a huge business
Venture capital often talks about three concepts, one is the network effect of the platform, the other is the scale effect of the retail company, and of course, it will eventually fall on the winner-takes-all "Matthew effect", that is, the phenomenon that the strong become stronger and the weak become weaker. A common share of data is 7:2:1, winner takes all, 70% for first place, 20% for second place, and 10% for the other 10%.
Leaders must have the idea of occupying 50% of the market share to redo their own strategic planning.
For example, we can stick to the vertical strategic line, rather than hoping to meet the needs of investors through a larger scale of the category market.
For example, you can consider how to lay out online and offline business, the pace of development and the means to achieve it. Instead of being hot-headed and following the trend to make some decisions.
For example, you can think deeply about how to dig deep into the barriers of the first chain and the differentiation of products and services, and distinguish the competition with large platforms.
Many investors don't like small and beautiful businesses, after all, they are too vertical. But50% of any business in China, with a population of 1.4 billion, will mean a huge business.
How to measure the future of a country.
And will the country be able to become rich in the future?
1. Look at the entrepreneur index. For example, where in China people are the richest?Putian, Fujian, look at the two sets of data, everyone will understand:
One group is 56789-Putian industry, which has 50% of China's gas stations (more than 80% of private gas stations), 60% of gold, silver and jewelry industries, 70% of wood, 80% of private medical and medical beauty, 90% temples, handicrafts, etc.
One group is 3 1 million to 1 million entrepreneurs around the world, 1 million entrepreneurs all over China, and 1 million local entrepreneurs. Therefore, Putian people are the richest.
2. Characteristics of Putian industry: a major industry;Dual Assets;3. Do monopoly;Fourth, a unique management talent system.
Why do many entrepreneurs fail?
1.Because after the financing is in place, the money will not be used, and the use of the money will not be allocated, so it failed in the end.
2.Growth can't break the involution!Rapid growth cannot break the involution!
3.Many masters are limited by the organization.
4.A lot of entrepreneurship is doing low-level competition, not high-level competition.
Why is it difficult for most merchants?It's because they are all thinking about cost and traffic, and don't think about the future, or rarely think about the future. Many of them are in the traffic business, and do not consider doing long-term business.
The most important thing for a founder is not only IQ, but also openness and understanding of the rules. In addition, it is difficult to choose a good team!
Analyze from failures: (Empirical analysis of failures in xx**).
The first place to fail: doing your own business. If you only do traffic, it is now easy to earn hundreds of millions of net profits a year.
The second failure: the wrong way to use people. Recruit people with traditional thinking to come and engage in new business, and the traditional business is more successful, and people's hearts become impetuous, and they don't do it in the new business. (All the heroes in the world are used by me, and sometimes they don't necessarily succeed).
The third failure: being targeted, being targeted.
The roles are different and the direction is inconsistent
The incremental market fights for innovation, and the stock market fights for efficiency.
Fight efficiency, fight operational efficiency, ** efficiency;Fight innovation, product innovation, marketing innovation.
If you want to play the whole game, you fight for efficiency, and you will have a hard time playing. You fight for innovation, and you have a hard time playing.
For example, if you want to play the pricing problem in the stock market, why do others set this **, and why are others stuck in this ** range?To consider!
Whether it is a traditional offline channel or the Internet, there will be competition in any business. Of course, I won't say that if there is competition, don't do it. The problem is how to do it, how to think about your role, sometimes think about it in a different role, treat competitors as partners, and there are still many opportunities for success. In other words, traditional enterprises figure out what they are good at and what they are not good at, and make use of their strengths and avoid weaknesses, and the probability of success of transformation will be much greater
More work doesn't mean more opportunities
The more categories you do, the more you do, not the chance of success, but the risk of failure, the front line is too long, not only to disperse resources, but also to lose focus, lost your core user needs!Expansion needs to be cautious, it is an opportunity and more a trap. Do you have the ability to handle it?It's like chasing a girlfriend, chasing one is definitely more likely to succeed than stepping on three boats at the same time.
What is Strategy?
Strategy is all about creating a unique, advantageous positioning that involves a variety of different operational activities. Make trade-offs in the competition and choose what not to do.
Three origins: 1. Variety-based positioning;
2. Needs-based positioning;
3. Access-based positioning.
by Michael. Porter.
"3+2+1" cutting-edge brand six forces model
The first product strength. Product innovation is the starting point. Product innovation and the best chain is the core content of a brand, which is related to subsequent repurchase and retention.
The second brand power. Brand power ability is one of the most basic abilities of entrepreneurs. How to judge the strength of the brand?There are four dimensions, the first is to look at the proportion of organic traffic. Companies with a good brand will be actively searched for by users;Second, look at the markup rate. In general, the better the branded product, the higher the markup rate;The third look, WeChat index. The stronger the brand, the higher the index;Fourth, look at market share. Companies with good brands have a relatively higher market share in the industry.
The third ** force. **The level of ability is directly related to the rhythm control of brand growth, whether the organizational department is coordinated, and the level of operational efficiency of the company's underlying construction.
Fourth, channel power. Channel promotion must have channel power, and increase sales channels through channel breaking circles in order to expand rapidly. Douyin, Kuaishou, Tmall, Pinduoduo and other channels must be planned to be used.
Fifth, capital power. Taking the capital route is a must, and if the brand wants to become bigger and stronger, the capital route must be carried away. The brand is too slow to rely on itself, and it is necessary to rely on capital to strengthen its own ** chain and brand.
Sixth** force. After reaching a certain scale, it still depends on the support of the state, that is, the local government. Especially in the current policy environment, the difference between not embracing the best is very large, and enterprises in any country need to have the best guarantee, without exception.
For example, the success of Tim Ke is very much in line with the six forces model.