Hardware Industry: Finding the Right Business Model

Bob Higgins, the founder of Highland Capital, said in his 20-year experience of his career: Looking back at the development of the company, I believe that each failure is attributed to technology, and each success is attributed to the business model. It can be seen that the importance of the business model for the development of enterprises, hardware companies have to find a business model suitable for their own development.

For hardware companies, of course, the most basic is the product, complete product range, comprehensive specifications, excellent quality, perfect after-sales service is the first step to seize the market, and then the business model can be followed by innovation.

What the hardware company should first study is the customer value proposition. No matter what the product is, it can be copied, duplicated, and surpassed. Therefore, a single hardware product cannot provide long-lasting irreplaceable value to customers. The technical advantage is only temporary. However, although the hardware industry is a traditional and basic industry, no one dares to assert that it will not fall into a “strange circle” where each failure is attributed to technology and each success is attributed to the business model.

In addition to products, hardware customers must have other needs, or companies can take the initiative to "attack" to create certain special needs for customers. This is the entry point for the hardware business innovation business model. For example, a web-based sustainable technology platform, where customers can not only customize products to special specifications, enjoy the benefits of innovative technologies, and even inspire customers to discover new business opportunities. When your company can provide customers with irreplaceable value, so that customers have a sense of dependence, but also worry about profitability?

In fact, innovative business models have brought unexpected benefits to hardware companies. E-commerce is the best example. Today, the majority of hardware companies have widely recognized and accepted the e-commerce sales model, but it was unthinkable 10 years ago, and most companies are skeptical and wait-and-see attitude. The facts prove that the first hardware company to eat e-commerce "crab" successfully opened up the Internet market, not only the brand has been greatly promoted, the market has expanded easily to take orders, compared with the traditional sales model, the cost of sales has dropped a lot, it can be said It is more profitable without harm.

Therefore, while ensuring the good quality of products and perfecting after-sales services, hardware companies must actively explore innovative business models to avoid falling into every failure and attribute them to technology. Each success is attributed to the bizarre cycle of business models.