wolf road

Chapter 37 The Wolf Pursuit (5)
Then the pie chain was born.Because there were only a few substandard coffee shops at the time, under the pressure of almost no competition, coupled with his own ambitions, Crocker quickly expanded his chain of stores.In order to realize his dream, he even did not hesitate to borrow usury.More importantly, this early expansion ensured McDonald's success and established its dominance in the growing hamburger industry.Today, McDonald's sells more than Burger King's, Wendy's, and KFC combined.

When explaining McDonald's success, marketing experts are keen to describe the company's stringent standards and procedures, its obsession with cleanliness, and rigorous training of franchisees (it opened in Ekogoway, Illinois). McDonald's Hamburger University, where all franchisees receive intensive training and each graduate is awarded a hamburger degree).These may be the luxuries given to the leader by the principle of strength, McDonald's is a leader because he entered the hamburger business first and developed steadily through rapid expansion.

In the pie competition, it may seem impossible for you to become the leader with a better-cooked hamburger, but you can keep your lead even if you don't cook a better hamburger.The leadership position gives you ample time to correct any problems that may arise.In the late 70s, according to surveys of public opinion, Burger King's quality was significantly higher than McDonald's products.A secret McDonald's document thinks so quite candidly.

([-]) Berg King's path

Burger King was the first chain to employ an effective strategy against McDonald's.When McDonald's became the nation's largest fast-food chain, it was no longer on the offensive but on the defensive.

The opportunity to use the offensive strategy fell on the shoulders of the second store chain, Berg Gold.

Principle Two of Offensive Warfare: Identify and attack leaders' deficiencies and weaknesses.McDonald's strengths are its hamburgers, its coherence, its fast shipping, and its cheapness.Or as advertised for McDonald's, the largest store in the chain, two all-beef patties, special sauce, lettuce, cheese, pickles, and onions on a sesame-seed bun.It's hard to say it all in one breath.

When it was printed, the McDonald's name was added with a small TM to remind people that it was a registered trademark.

But where is its bad point?Apparently, it exists on the assembly line system McDonald's uses to quickly ship cheap hamburgers.If you want to order something special, you have to stand in another line and wait patiently.At the same time a waiter had to go to the back to make a special order, and the operation of the system was messed up.In the early 20s, Burger King implemented a strategy to exploit this weakness.As you want, the ad says, it can be unpreserved, you can have it unseasoned, or whatever you want.Here at Berg King, you don't get treated like a bum for ordering specials.This is their advertising promise.

Also answered was Burger King's Sales: As You Ask Advertisement effectively separates the two businesses in terms of customer service and condiments.It has also been noted that the McDonald's business has come under pressure.It cannot compromise its coherent system by making the same promises as Berg King.That's how a good offensive move is judged.Ask yourself: Can the defenders themselves compete with it without compromising their own status?An advantage can also be a disadvantage.You have to find out where the two are connected.

([-]) McDonald's turned to the fried chicken industry

The era of expansion at McDonald's came in the 20s, when the business was looking for ways to attract new customers and generate more revenue.Such goals are attractive, but they are also fraught with risks.When you fight too long, your backbone becomes weak.Also, if people want fried chicken, why don't they go to KFC?And indeed, the two major expansions that McDonald's began, Chicken Mike's and Pork Mac's, were unsuccessful.

The McDonald's Nougat Chicken variety was a close second, and the project was a success and increased McDonald's sales.But new fried chicken products often require a lot of effort and millions of dollars in advertising.Surprisingly, KFC has not responded to the emergence of the Mike Nugget variety.It took the fried chicken chain nearly eight years to come up with their own version of McDonald's fried chicken.Gator Fried Chicken is what it's simply called.

The third principle of defense says: a powerful offensive must be contained as soon as possible.KFC Fried Chicken wasted 8 years.In those years, they could have used the McDonald's advertising campaign to take the business even deeper.

McDonald's started with a hamburger attack on the heart of the coffee shop.But it would be ironic if, in doing business around it, McDonald's now turned itself into the all-encompassing coffee chain it once was.

([-]) Battle of Pies

Burger King's eyes turned to the most important part of the McDonald's center.This is a classic offensive strategy that attacks the inherent weaknesses of leaders who overextend their operations.The most effective commercial is the one because their hamburgers are grilled over a fire.This implies that the Burger King hamburger tastes better than McDonald's deep-fried hamburger.

It was the phrase grilled, not fried, that quickly captured the public and drew the attention of McDonald's lawyers, who promptly sued.It happened to Berg King's great advantage.McDonald's angry response turned the campaign into a buzzed-about event, captivating all three networks and dozens of television stations and newspapers across the country.Sales at Burg & King's went up.It was up 3 percent from the year before, compared with McDonald's 20 percent increase.Although the quantity is small, the base is large, and it is facing the problem of particularly tight and large expenses.

Although Burger King's advertising budget can't match McDonald's, they managed to raise $12 billion for TV advertising.Meanwhile, while Burg King was busy launching an offensive, another chain was employing a different marketing strategy.

([-]) Attacking the flank of McDonald's

Wendy's was founded by the former vice president of Kentucky Fried Chicken, and it was only in 1969 that it established the first traditional hamburger store.Despite its late start, Wendy's has grown rapidly by flanking the adult consumer market for hamburgers.Adults are the primary target of Wendy's advertising.Emphasize allowing adults to enjoy their own portion of food in a comfortable setting.Here, there are no free straw hats or balloons, but at Wendy's, the smallest hamburger is a quarter-pound and has a round beginning, so it grabs attention.Wendy's hamburgers runny hot need a lot of napkins.Here's the commercial: You don't feed your kids this bread, or you're going to have to change their clothes when you get home.Hot and juicy is one of its advertising ploys to instill an adult view of the hamburger into the masses.

Soon, Wendy's profit margins were nearly two and a half times those of fast-food restaurants, and it was putting pressure on Berg King.

What follows is the surprised expression of an octogenarian, Clara Paller.No TV commercial has ever captured the public's imagination like Where's the Beef?In 80, where's the beef ad boosted Wendy's sales by 1984 percent.For several years it was the most popular saying, as it became the catchphrase of Walter Mundella and many others.But the more important fact that helped boost Wendy's sales was the larger, adult-friendly hamburger.This term captures the strategic essence of Wendy's.

Like McDonald's in the past, Wendy's is out of it all now, has anything changed?nothing.What Wendy's should do is bring back the beef products and bring back Clara Paller.In a flanking battle, advancing from victory is as important as attacking.

The reason why it is called a technology offensive strategy means that the organization should go all out to pursue the novelty and advancement of the organization's products or technical level by developing or introducing new products, occupy new markets first, and ensure that it maintains a strong position in the market competition. Technology leadership.Organizations adopting this strategy are technologically advanced, and the market they occupy will not be easily taken away by competitors. Moreover, after this strategy is successful, it can also bring a large amount of profit to the enterprise.

Enterprises and institutions using technological offensive strategy can be divided into three different ways to achieve the strategic goals of the organization.First of all, technological innovation and new product development can be promoted through investment in scientific research, including investment in basic research and applied research.Secondly, it is necessary to concentrate efforts to promote the materialization of technical knowledge into new products through the investigation and research of potential effective demand in the market.Finally, it should also be noted that maximizing the initiative and innovative spirit of entrepreneurs can also lead to technological updates and new product development.

In the process of developing new products, enterprises require a large amount of funds and high risks. Therefore, enterprises should also do a good job in relevant market research and market forecasting to ensure that they can foresee the future market at the level of new technologies. potential needs.In addition, in order to maintain monopoly profits, it is also necessary for organizations adopting this strategy to carry out patent protection for innovative products and technologies.

Organizations adopting technological offensive strategies have high requirements and must have the ability to mass-produce new products in order to occupy a larger market.Therefore, in contrast to it, the organization adopting the technological offensive strategy should be an organization with independent research and development institutions, strong technical research and development capabilities and strong financial resources.

decisive
Decisiveness and resoluteness are one of the characteristics of wolf nature. Although they are called barbaric and cruel by many people, it has benefited the wolf clan a lot.If the old wolf mentioned in the previous story hadn't eaten his lover, how could he regain his freedom?
Resolute, resolute, courageous and insightful, decisive and firm actions after careful consideration and deliberation are based on rich experience and knowledge, which is a special kind of bravery.If a person has quick determination and firm self-confidence, he will have more chances of success. This is far from being comparable to hesitant and ambiguous people.

Judgment is necessary in dealing with any event of importance.Judgment should not be disturbed by emotional fluctuations, suggestions, criticisms, and appearances.It is unaffected by anything other than the true state of the fact itself.

It is the tragedy of life that some people, although outstanding in ability, are ruined by such a small weakness of personality, especially when they are strong in other fields.Thousands of people today are mediocre because they are exceptional in ability but lack decisive character.You know, in any case, it is a tragedy not to make your own decision with full confidence.Many people also suffered from such failures, not because of lack of ability.Nothing in the world can help those who are uncertain and hesitant to develop the habit of quick and decisive action.Therefore, one cannot grasp the essence of things by trying to be comprehensive.Decisions are decisive and unchangeable. Once you make a decision, you must try your best to implement it. Even if you make mistakes sometimes, it is better than the habit of seeking balance in everything, always thinking about it, and procrastinating.When we commit to forming a habit of quick decision-making, even if it seems mechanical at first, it builds confidence in our judgment.So, a whole new spirit of independence will be acquired by a person.

In many home appliance companies in China, diversification or specialization has been an antinomian question for quite a long time, and no one seems to be able to give the correct answer.Skyworth is no exception.

After the failed PC business ended, Skyworth began to focus more on the color TV business.In terms of the company's business structure, Skyworth also carried out a round of slimming campaign, and finally determined the current company structure.Skyworth's spokesman Shen Jian said that Skyworth's experience can be summed up in one word, that is, a large company realizes the management of a small company.In the eyes of the reporter, it is a rabbit-like survival method of a camel.

Skyworth announced the latest announcement in the first half of 2003 in Hong Kong in December 12. The announcement said that Skyworth realized a net profit of 2004 million Hong Kong dollars, a year-on-year increase of 8090%, and its dividends increased by 263%. Skyworth Digital sold 300 million TV sets. Taiwan, a year-on-year increase of 330%.This is the 24th consecutive month that Skyworth has maintained a high-speed profit growth trend, with an average monthly profit of more than 30 times and a debt ratio of 2.5%.

Huang Hongsheng, the chairman and head of Skyworth, attributed the transformation of the company to Skyworth's return to the color TV business. Taking the road of specialization makes Skyworth's development strategy more clear than ever before.

In Huang Hongsheng's words, if you say it is light, it is light, if you say it is heavy, it is not heavy.However, Huang and his Skyworth are very clear that such experience comes after paying a price.Back in time to 2000, Skyworth and the entire color TV industry were experiencing industry-wide losses.Skyworth lost 2000 million yuan in half a year in 1.Misfortunes never come singly, and personnel turmoil ensued. More than 2 sales elites of Skyworth collectively quit, and almost half of the area managers in Skyworth's 100 regions left.

In 2001, Skyworth lost 1 million yuan, and its stock price fell to 6 Hong Kong dollars, a drop of almost 0%.Precisely at this point in time, entering the PC industry was another decision made by Huang Hongsheng.

Skyworth employed Silicon Valley's entrepreneurial model and salary model to recruit five generals, including Wang Tao, then a senior manager of Microsoft project research and development, to build Skyworth Computer, and hoped that the latter would become a new profit growth point for Skyworth Group.

However, the cold winter of the IT industry cooled Skyworth's confidence in entering the PC industry from boiling point to freezing point, and bad news came one after another: 12 computer dealers asked to reduce prices to make up for the difference or return the goods; 14 billion yuan of computers were still piled up in Skyworth's warehouse At this time, the news came from the United States that the CPU is about to be replaced.

What is before Skyworth is to continue to follow up or withdraw.Skyworth chose the latter. Within 90 days, Skyworth ended the unsuccessful PC business at an actual loss of 2700 million yuan and returned to the color TV business.

Skyworth began to recreate the road of Skyworth internally.The top management of Skyworth began to mobilize employees: the digitalization process of the entire home appliance has not yet started, but the opportunity is in sight.On the other hand, a series of process reengineering has also begun. Skyworth has transformed sales, research and development, manufacturing, and service into a one-stop production, supply, and sales chain, and has also established a long-term performance appraisal mechanism.In order to stabilize the confidence of employees within the company at that time, Skyworth took out a considerable part of the equity and distributed it to key employees. In 2001, Skyworth's industry ranking also rose from the 6th to the top 3, turning losses into profits.Skyworth has achieved 400% growth for two consecutive years, but there are new problems behind it.This is a worldwide problem faced by group enterprises.That is, when an enterprise grows into a large enterprise group, what kind of group management method should it choose?How can we not only make full use of the overall resources of the group, but also give full play to the growth space of each business unit, and minimize internal transaction costs?
Huang Hongsheng said: To be a business is to push a cart on a slope. When you have no strength, inertia will crush you to death.

(End of this chapter)