Hardware and electromechanical companies pick up diversified operations "big banner"

Since the “Soya-bean milk machine lubricants” incident broke out in early September and the dust had settled recently, the company, which mainly produces and sells soya-bean milk makers, was hit hard. Although the incident showed that domestic soybean milk machines did not have unqualified lubricants. The problem, but in a month or so, the overall image of the soybean milk machine industry was seriously damaged, including the stock price of various small household electrical appliance companies such as Jiuyang fell. In particular, the stock market value of Jiuyang Stock lost nearly 1 billion within two days.

In recent years, due to doubts about the safety of domestic dairy products, coupled with KFC's "soya milk" and other incidents, the soybean milk machine has suddenly become a hot commodity in the market. However, Dongfeng has rapidly developed into a famous brand of Jiuyang and encountered foreign Public relations crisis and malicious slander will still inevitably suffer losses. This also allows us to see the risk of relying on only one type of product to participate in market competition.

Diversification has always been an important measure for many companies to evade risks arising from single-product competition and make them bigger and stronger. Diversification is conducive to improving operational safety and diversifying risks. It is conducive to the transfer of businesses to promising new industries. It is conducive to complementary resources and promote the development of various businesses. Diversification is often reflected in the expansion of cross-product and cross-industry companies.

Some electromechanical companies that insist on specialization have also begun to lengthen their production lines. Like some home-based companies, they have been affected by shrinking markets, falling profits, and homogenous competition. They have been involved in the cross-industry diversification of the pan-home industry, trying to This breaks the bottleneck of market development. Some electronic and electrical industries, in the continuous development of technology, product prices have been declining, profit margins have become smaller, it also turned to diversified development, such as Lenovo Group has now involved in computers, television, real estate, coal chemical industry, agriculture, liquor, mineral water In many fields, its diversification strategy is gradually emerging.

However, diversification is not what you want to do. Diversification is a “double-edged sword.” When it brings new development space to the enterprise, it also consumes a lot of resources of the enterprise. Success is not a matter of overnight. Companies need to have strong strength as a guarantee for long-term development of diversified operations.

In fact, as early as the "soymilk lubricants" incident, Jiuyang has begun to try diversification. In July, Jiuyang announced that it planned to invest RMB 1 billion to develop a health industrial park project in Lin’an City, Hangzhou, in an attempt to change the “walking in one leg” dilemma. However, judging from the current situation, the future direction of Jiuyang’s diversification strategy is still Unclear, economic benefits are still not obvious.

According to Xiao Bian, although diversification can bring new profit growth points to enterprises, diversify corporate risks, and bring greater room for development to enterprises, not all companies need diversification.

First of all, different companies have different market positioning. Specialization does not mean that there are no diversification strategies. There are competitive advantages. Companies specialize in technology, continue to innovate in technology, and develop technology into their core competitiveness so that their peer competitors cannot imitate and Beyond, professional companies can win the market for a long time.

In addition, to do diversification, the overall strength of a company must be strong enough, based on its core competitiveness, and supported by strong financial and human resources. Only if an enterprise is based on the principle of “one industry is dominant, and one is strong and strong” can With strong ability to compete and resist risks, you can have experience and capital to get involved in a broader new field.

At the same time, diversification is not tantamount to diversification of production. Diversification of production will inevitably dilute the energy of the enterprise. Diversification is a category of sales. Without diversification, it can still be integrated and diversified. Therefore, it is necessary to achieve diversity. In business operations, companies need to take care of both inside and outside, not only to ensure core competitiveness, but also to have a high level of integrated marketing capabilities and market mastery.