1、 The concept of strategy (what is it)
Strategy is direction, choice, choice, and victory before battle.Tactics is execution, effort, optimization, and the pursuit of victory through battle.
Corporate strategy should focus on four key words: trend, cycle, overall situation, and final outcome.To see the trend of the industry (upward or downward), the cycle of the industry (seven stage cycle theory),
the overall situation and outcome of the industry.The most important indicator: per capita GDP.
2、 Strategic positioning (what to do)
First positioning: Strategic positioning at the enterprise level (mission and vision)Positioning "what problems I solve for society" is also a social division of labor positioning and the mission of positioning enterprises.Set development goals for the next 5 and 10 years, what kind of enterprise to become, and position the vision of the enterprise.
Second positioning: Business level strategic positioning (STP strategy, business model)What is our business and who are the customers we face? What products and services do we offer? What is the transaction method? Using a set of products and services to solve customer problems.
Third positioning: Strategic positioning at the functional levelUsing a unique combination of business activities, including finance, human resources, research and development, production, operations, sales, services, etc., all of which work together to form a unique competitive advantage.
3、 Three levels of corporate strategy (how to do it)
Firstly, enterprise level strategyEnterprise level strategy can be divided into expansion strategy, stability strategy, and contraction strategy.Development is the hard truth. Growth can cure all kinds of diseases.This is true for a country, a company, a family, and even an individual.
Expansion strategies are divided into centralization strategies, integration strategies, and diversification strategies.Centralization strategy refers to focusing on a sub sector within an industry chain and continuously deepening cultivation. (Also known as a focus strategy, a strengthening strategy.)Integration strategy refers to expanding within the same industry chain.Integration strategy can be further divided into point, line, surface, and body strategies (self implementation), integration strategies, and integrated strategies (horizontal integration, vertical integration).What is integration? Acquisitions, mergers, alliances, and so on are all forms of integration.Diversification strategy refers to entering multiple industrial chains.
Stable strategy. Take defense as the offensive, operate conservatively, and maintain the status quo in business areas and market size.Contractive strategy. A contraction strategy refers to reducing investment in this niche area.Shrinking in one field is to accumulate strength and expand in another. Squatting down is for taking off.
Secondly, business level strategyThere are four business level strategies to expand on the two dimensions of product and service price and quality:Products and ServicesGood qualityPoor qualityHigh priceDifferentiation strategyLuxury strategyLow priceCost strategyHomogenization strategy(I came up with this model myself. In the past, everyone used to talk about differentiation strategy and total cost leadership strategy, ignoring luxury strategy and homogenization strategy.)
1. High Price and High Quality - Differentiation Strategy (Innovation)Differentiation advantages of products and services.The price is higher than you, and the quality is also better than you.Unique value. For example, Tiktok Kwai, Xiaohongshu, Apple mobile phone, Yuanqi Forest.Better service. For example, China Merchants Bank and Hai Di Lao.More comprehensive categories. For example, Taobao.Faster speed. For example, JD, Meituan, SF Express, and Xiyin.More professional. For example, large hospitals, universities, and bull sockets.More convenient. More and stronger sales channels, such as Wang Laoji and Yibao.Wait a minute.
The main strategic approach to achieving differentiation strategy is innovation. Dare to be the first and occupy the first mover advantage.The innovation strategy is divided into three directions: product and service innovation, business model innovation, and value curve innovation (blue ocean strategy).
2. Low price and high quality - cost strategy (scale+informatization)Total cost advantage and high cost-effectiveness.I have a lower price than you for the same quality, and a better quality than you for the same price.For example, Pinduoduo, Vipshop, and Xiaomi phones.Note that low prices are not advantages, low costs are advantages. Low cost is the ability to offer low prices.The main way to achieve a total cost leadership strategy is through scale.
3. High Price Low Quality - Luxury Strategy (Scarcity+Cultural Stories)Brand awareness advantage and trust.I am more expensive than you for the same quality, but my quality is worse than you for the same price.But my reputation is bigger than yours.For example, Maotai, Herm è s, Chanel, Dior, Louis Vuitton, Patek Philippe, and various luxury goods.The main way to implement luxury strategy is through scarcity.
4. Low price and low quality - homogenization strategy (imitation)If there is a differentiation strategy, then there must also be a homogenization strategy.The price is lower than you, and the quality is also worse than you.I don't innovate or differentiate, it's just imitation.Provide low-quality products and services at lower prices.The market is stratified, and the audience is stratified. Of course, there is also room for survival with low prices and low quality.For example, both Xiaomi and Redmi phones pursue cost-effectiveness, but Xiaomi phones have better quality and higher prices, while Redmi phones have lower quality and lower prices.The Xiaomi phone priced at 2000 yuan is in demand, and the Redmi phone priced at 1000 yuan is also in demand.For example, in the early stages of Taobao and Pinduoduo, various imitations are the survival strategies for a large number of small workshops and businesses.It is important to recognize that low price and low quality are just low quality, not inferior.Low price and low quality are relative, not absolute. With the continuous development of society and productivity, current low-priced and low-quality products are also much better than previous products.The quality here can be the quality of the product or the portion size of the product.For example, a pack of lollipops has ten sticks, and a pack of lollipops sells for ten yuan. But if someone can't afford it, then they can sell it one by one for one yuan.The main way to implement the homogenization strategy is through imitation. Dare to be a person and have an advantage in being a latecomer.
Thirdly, functional level strategyBrand strategy, marketing strategy, sales strategy, research and development strategy, production strategy, financial strategy, talent strategy, procurement strategy, and so on. We will not expand here.
