Category: Money tips Release Date: 2007-03-31
"Happy families are similar, but each have their own unhappy family is unfortunate," This is the famous Tolstoy "Anna Karenina" at the beginning. Similarly, the reasons for business success are similar, but each have their own reasons for unsuccessful different. For example this year, Kodak is still struggling in the mire company continues to incur losses in the first half, and the traditional imaging business fell faster than Wall Street expectations. Perhaps this is the pre-dawn darkness, like Kodak China, described the woman as the Chief Executive, but perhaps not.
From a historical point of view, a Polaroid imaging technology because companies such as Kodak and Fuji go bankrupt the development of digital camera technologies, the traditional imaging products has almost completely lost their advantage, as an ordinary consumer goods have been out of its outcome a matter of time problems. But Kodak there are more important issues. Since traditional imaging technology is a mature technology, in order to obtain profits, Kodak has taken two key strategies: First, brand building, the main form of advertising and sponsorship; the second is to serve the terminal building, which not only strengthens the brand image, but also help boost market share. These two strategies to address the global imaging market, Kodak became the absolute leader, it has the highest gross margins, up market share and a stable growth rate, for investors it means that excess returns.
But digital technology has changed everything, even Kodak's successful transformation into a digital camera manufacturers, and continue to provide printing services digital camera, but Kodak can no longer afford to maintain high margins in the past. From a technical point of view, Kodak's core technology in the film and digital camera's core technology is not relevant; from service point of view, for a digital camera, the printing greatly reduced the importance of the terminal, these two factors that Kodak can not get high the main reason for Maori.
One in the industry-leading companies if we continue to achieve rapid growth, this company must meet three conditions:
Net sales of a certain rate;
The growing market;
Faster and lower-cost expansion.
This is for all of the super-companies are the same, as long as one can not be met, then the long-term investors want to hold super-profits of the enterprises will be full of risk; but different enterprises can not meet the terms are the same, can not meet the The reasons for this are varied, unsuccessful in the form of more varied, like Kodak and ATNT failed for different reasons.
These three conditions, the sale of certain net profit margin of the most important and most difficult to achieve, it indicates that either maintain a relatively high margin businesses, either as retail businesses, have great sales, and thus obtain a higher net profit of the absolute value. To meet this condition is primarily relying on the inherent quality companies, while the remaining two conditions are external, companies can choose to enter or not enter the more difficult through their own efforts to transform. So if there is leading to the existence of a super business road map, then the road map is: to select a new industry such as network, or a traditional business, but because of the rapid increase in innovation so that the degree of concentration, such as the retail chain over the past two decades; Second, the industry should have less capital expenditures and for easy capacity expansion, such as the software industry. Expansion of the cost of a small bound to bring about competition, which erodes profits, so be sure to avoid the other competitors to enter in order to maintain a certain net profit margin.
High-tech products, the difference of branded consumer products, services such as retail, finance, logistics, etc. it is possible to enter the super-corporate road map for the three main starting point.
