As a diversified pan Extensive expansion is often more surface water, add more water surface, from the origin of the corporate strategy lopsided
septwolves 2013 March quarterly show, the company’s single-quarter revenues continue to decline, trade balance reached a record high, solvency and operational efficiency are decreased, some critics believe that this is weak retail environment and the effect of the weather .
However, the reaction from the market point of view, the potential negative is the real reason for pushing the market value decline. If the company strategy can be recognized by the market, not because of the volatility of weather and other causal factors so that investors vote with their feet. In fact, septwolves receivables straight up the crisis as early as the third quarter of last year, it has emerged, there are institutions sold a net year. Knowingly failed to reverse declining revenue and, it must be a strategic issue in a wide range of “Cube” in somewhat lost.
Pan-diversified “cube”
septwolves no doubt, is walking a path of diversification, which in itself is not wrong. Throughout the world’s top 500, and both are diversified development model. Enterprise development to a certain size, more often than not one to do a wide range of problems, but how to diversify in making choices. Some people likened diversification swaying poppy flower feminine grace, all the time exudes a charming aroma, if too obsessed, might be lured into a treacherous abyss. septwolves diversity is at the edge of the abyss, not only because of diversity itself is a “cube”, but because septwolves diversification strategy choice of fish and eat it too, has become a pan- diversity.
The so-called pan-diversity refers to the diversity of the “meta” too much, the lack of dominant direction. septwolves 1996 年 Jinjiang City of Fujian Tobacco Monopoly Bureau, development and production of “gold septwolves” cigarettes; 1997 launched the positioning in the high-end wine products “septwolves golden cup of beer”; 1998 has been actively involved in the tea culture products industries. septwolves 2008 was decided to shift to strategic investors in shares of Industrial Bank, based on the 10% of shares as investors boost Plum Umbrella landing A-share market, real estate and even the layout of various industries. Only listed company’s current apparel brand system point of view, the formation of Shengwo Si, red wolf, wolf green, blue wolf, women and children’s clothing several series. 2010 began gradually from the “wholesale” to “Retail” strategic transformation, committed to creating “channel brand.” In addition to channels counters and stores, flagship stores, as well as supporting targeted at high-end living museum, famous enterprises POLO par with the United States intends to make different products and different brands docking channel system.
Use these dazzling diversity may not be a full range of exploration, but if conflicting centrifugal effect, destined to end. Knowing that brand personality is not strong, cohesive brand case of insufficient, septwolves imported brands from 2006 onwards new concept – “the man only one side,” attempts to brand connotation vertical expansion, no doubt futile. “Men only one side,” although other aspects of diversity can leave endless foreshadowing, but did not elaborate but makes no strong brand personality is even more prominent. Pressure on dealers, agents lack of willingness orders will lead to decrease in receipt of customer orders in the case, on one hand, to ease the financial pressure channels, giving agents more credits; hand wants to put aside agent model, the terminal force, to create “brand channel” is equal to the demands of the main channel of the declaration and sales agents who compete. As a result, the role of credit limit increase will obviously be offset.
It should be recognized, no ready-made model diversification strategy, both vertically extended operating varieties, and can scale business areas, on a larger scale to meet the diversified needs of consumers, but also can vary according to market products and services to consider the transformation Upgrade; however, in a specific period of time, often only in the vertical and horizontal, or even choose one of the line. The problem is that there are various versions of the front of decision makers are often diversified program, both sides according to the rational, hard to score. This is like CCTV recently aired TV series “Great Qin Empire of Asia” in the performance of it, counselor who can Conspire cloud cover for rain, so GeZongLianHeng is said like a Rubik’s Cube. This is not GeZongLianHeng no truth, but on the kings ability to make informed judgments. In other words, diversity is exactly what directions to a very critical issue, policymakers must explicitly choose the feasibility and rationality; otherwise “positive” efforts but will follow the trend of generalization in the parrot, lost in the multi- of the “cube.”
Shake off the “flat world” feelings
Pluralism “cube” Lost in the reason will be “positive” way manifested, of course, reflects the decision maker’s personality, and traditional culture in national psychology precipitation is not unrelated. Confucian scholar self, family, country and the world of social inertia of thinking still tenaciously in modern life manifested, the so-called industry serve the country is simply “flat world” another manifestation of feelings. Diversification in the pan, the production, supply, industry and trade integration, coupled with the diversification of products and services, in fact, is a kind of social form of cloning. Rather than septwolves is a costume to build the kingdom of dreams, but rather that it is to lose ground, to break new ground, self-contained way the commercial version of the story one of the princes.
As a diversified pan Extensive expansion is often more surface water, add more water surface, “flat world” performance of struggling to cope with feelings inevitably stretched. For example septwolves previous departments do their own planning, budgeting, independent assessment, waiting for instructions from the leadership can be. 2009 increased strategic department, all the strategies led by the Department, to make a proposal according to market conditions, and then assigned to each business unit, let a lot of people feel “uncomfortable” does not communicate with harmony.
Crucial question is, Strategy proposal requires information from the front line support, otherwise it becomes whim. So septwolves head of the center will be established brand in an attempt to understand the market. But this is also a problem, because the brand center focuses on brand building, rather than the market. septwolves brewing had to set up an independent marketing department to padded message short board; But by the Marketing Department to do the brand upgrade, the original agency’s authority and being challenged, the formation of a big company disease.
Good financial results in 2010 cases, septwolves head of breath out in front of the media category diversified line diversification, diversification of the brand concept, suggesting septwolves the next big move. It is from then on, septwolves “flat world” feeling exposed their weaknesses: more and more departments, staff and mostly just in place, not only between people, between departments also likely to have friction. Each has its own pressure to perform with each other due to poor communication, easy to form islands of information. Can imagine, septwolves to “wolf” totem embodies teamwork Although considerable incentive effect; however diversified in the pan, if the team is still the all-wolf, and that just destroys the ecological balance within the team. On the other hand, septwolves brand advantage in the pan diversification in different ways, but easy to be confused with the downgrade. No wonder people in septwolves the occasion of the recent performance continues to decline, domestic brands will call it “decline typical”, “three-line second-tier brands have sold price,” ambitious but left out.
If septwolves is stuck in the pan diversification results in the quagmire, that is definitely not the case, but Chinese entrepreneurs in the bigger and stronger efforts dilemma a common problem. In fact, the implementation of the diversification strategy, companies must follow the circulation of commodities and progressive social division of its own laws. Frequently to “a certain kingdom,” “a certain Empire” model commercial layout of products and services, the “Fortune 500” understood as the World 500 “country”, apparently underestimated the relevant body wisdom. Foxconn has also been wanted distributors, world-take-all, so far without success is not due to Foxconn no courage, but because of Apple and other brands will not tolerate foundries control their own channels. If Foxconn immediately in accordance with the overall layout of vision, Apple and other brands is highly likely to turn away from Foxconn OEM advantage. The relationship between agents and septwolves should also be the same, “flat world” so that they can not have feelings outpouring prevention.
Hold strategy vibrant origin
If extensive expansion defects appear as early as expected, then from the pan diversified extensive expansion into endogenous growth model of development has become inevitable. But for septwolves concerned, is not “change” but “return” because septwolves ever had “sell themselves” vigor, endogenous growth strategy revolves around the origin should be expanded. septwolves head of operations will be divided into more than 20 years from a focus on product quality to the brand operation in the channel construction, to enter the retail system in three stages; This just shows the trajectory of three stages, septwolves in the “flat world” Feelings from the initial focus on product quality in the origin of lopsided, “return” to get rid of origin in order to become lost inflection point.
It should be recognized, septwolves early diversification is successful. septwolves first explicitly put forward the “septwolves — advocate Men ethnic culture,” the positioning theme, once in the diversification of the main industry maintains a steady upward trend. As the South to send men’s brand leader in the “male” and “loaded” held on these two dimensions of diversity had formed a certain advantage, in both sexes the world has enough space to open up, such as suits, leather areas have brand leading the trend. However, septwolves seem unwilling to become the head of one of the largest clothing manufacturer, but to become China’s largest clothing retailer, is committed to the channel from the clothing manufacturer’s brand transformation, is tantamount to far away, like monkeys breaking Baogu . Fortunately septwolves seems to recognize this, because of pressure on the stock in the first half of the net shut shop 152, accounting for the total number of Direct terminal 1/4. Its reluctantly part, it is better as a “return” strategy origin good start.
Indeed, with the continuous improvement of people’s living standard, the level of consumer demand to upgrade the enterprise needs to improve brand connotation; However, this is a specialty based on how to keep the issue of innovation, need to continue to increase investment in innovation to solve, while not the opposite. septwolves 2004 after the listing investment expansion, leading product jackets, T-shirt sales of more than 70%, showing a good momentum. 2007-2009, the company leading product jackets, T-shirts and other casual apparel sales accounted for the proportion of main business revenue declined slightly, the original decision-maker should arouse vigilance regain decline; policymakers has drawn the opposite conclusion that it is a single product for the consumer market structure change adaptation is poor. But this time the leading product jackets, T-shirts and other casual clothing sales are still the main business income accounted for more than 60%. Why can not reflect the main business trend, while putting the focus on more than 30% of the non-dominant product diversification, and there will inevitably be caught and pound-foolish.
septwolves the head at all times maintain a sense of crisis, which is commendable; issue is that this sense of crisis has turned into a linear increase in performance must remain the only performance theory, fear is beyond our competitors in terms of performance. In fact, any products in the market are not all the way up, the exhibition some flair, a relaxation is completely normal. Policymakers should maintain a certain concentration, in the “winter” comes loneliness, gathering vitality. But not what “Zhang” to engage in what pluralism; any “relaxation” on the shelve what was opportunistic nose. As markets become increasingly standardized, there will be more diversified entrepreneurs vertical and horizontal space, but more diversification does not mean that they can form more advantages, hold strategic vibrant origin is fundamental. Emphasize this point is particularly important in the current, as further reforms will release more bonuses, more open areas will provide more diversified freedom, entrepreneurs can withstand the temptation of more reform dividends can No stick to the existing edge is facing new challenges….
