No matter what industry or era, there are always companies that do better than their peers, and there are always companies that can maintain their own growth and gain the status and value of surpassing their peers. Therefore, the key is not what industry to enter and what industry to be in, but whether the enterprise itself can find its own value growth model.
Many small and medium-sized enterprises cannot find a model for growth, and always grow based on imitation or short-term market stimulus measures, which leads to short-sighted behavior within the team, and always operates the enterprise based on the perspective of solving immediate problems. And solving the problem should be put in the second place, and the first should be to find your own position, choose what to do and what not to do. The reason why Chinese companies are fragile is that they don't think strategically, but only manage them. The problems faced by enterprises are endless, and the problems themselves are the responsibility of management, but the problems are not the key to the survival of the enterprise, the key to whether the enterprise can survive is how to make strategic choices, and the strategy determines the fate. Strategy is not simply an action based on profit, but an action based on sustainable development. If everyone wants to solve a problem, it will inevitably lead companies to decide on products based on their capabilities. Internal members will also do a lot of things that are not valuable to the company because they are satisfied with solving the specific problems at hand, and the team will work according to their own understanding because they lack a consistent long-term goal orientation.
The miracle of successful enterprises is derived from the unique innovation of customer value, which will depend on technology, capital, talent, etc., and strategic thinking is the choice around customer value. In this era, due to the promotion and challenge of emerging technologies such as information technology, biotechnology, new material technology, new energy technology, space technology and marine technology, the field of enterprise value creation activities has been expanded, and the market complexity is also increasing exponentially.
Operational efficiency is one of the easier ways to achieve growth, but it is also another more difficult way to achieve growth. Operational efficiency means that similar operations can be done better than competitors. Strategic positioning, on the other hand, means that the operational activities are different from those of the competition, or that they are similar but implemented differently than the competition. In the long run, almost no company can always be invincible with operational efficiency. The end result of a strategy of replacing operational efficiency is inevitably zero-sum competition, constant or rising cost pressures. However, a large number of small and medium-sized enterprises in China have low internal operation efficiency and a large number of wasteful behaviors.