Michael Potter: Cost-leading misunderstandings 2003-3-3 When the more and more companies face "super competition", people will not help but think about it. Is this the inevitable process of business big waves? Michael Porter believes that this irrational homogenization competition can be avoided. If these companies can understand the other half of the awareness of competition. Today's management rules are only for half a year. The managers have continued to learn, such as: 1. Enterprises must remain flexible, rapidly respond to competition and market changes; 2. Continuous marking to achieve best Performance; 3. Actively adopt outsourcing methods to achieve better efficiency; 4. In order to maintain a leading position in competition, companies must cultivate their core capabilities, and so on. These ideas are right, but they are only half. The reason is: 1. As the control is relaxed and the globalization of the market, some competitive obstacles have no longer exist; 2. The positioning once is the core of the strategy. Today, because it is too static, no longer suitable for today's animated market and fast The technique of change is abandoned; 3. According to the new battle, competitors can quickly imitate any market positioning, and the competitive advantage in the positioning is just a temporary thing. Many industries have so-called super competition, in fact, the self-harm of enterprises, and even a competitive road that is destroyed, it is not an unavoidable consequence of competition. The difference in efficiency and strategy is increasingly chaotic, and the Operational Effectiveness, OE is mixed with strategy. In order to pursue productivity, quality and speed, enterprises have given many famous management tools and technologies, although the results of improved operation methods are often very amazing, but many companies have been frustrated by the unable to convert these progress into sustained profitability. The main goal of enterprises is to achieve good performance, while the operational benefits and strategies are an important part of achieving good performance. The problem is that the operation of efficiency and strategy is not the same. Enterprises can stand out in competitors, provided that it can establish and continue to differ from competitors. It must give customers higher value or create considerable value at a lower cost, or both. Excellent profitability algorithms are: providing better value, allowing companies to request higher product unit prices, or higher efficiency can lead to lower average unit costs. All differences in cost or price are the final result from hundreds of activities. These activities are for development, production, sales and transportation of products or services, can achieve cost advantages, and see if companies can be more efficient than competitors in specific activities. Similarly, the difference comes from which activities are selected, and how to perform these activities. Therefore, the effectiveness means that any job that allows companies to take advantage of the resource, making it better than competitors when performing similar activities. Conversely, strategic positioning means that companies perform similar activities different from competitors or perform similar activities in different ways. The effectiveness of operation is becoming the difference between the effectiveness of the work, is an important factor in the degree profit in the competition, as they directly affect the relative cost status and differentiation of the enterprise. Here to involve a concept - productivity. Try to imagine a production force that can provide all the best performance at any time, regarding this area as an enterprise under the established cost, using the best technology, skills, management skills and raw materials to provide a certain item. The maximum value of the product or service can create. The concept of the productivity boundary can be applied in individual activities, and can also be used in a series of activities such as order processes and manufacturing, and even the company's activities.
When the company improves the efficiency of operation, it moves toward the area. Entering the productive boundaries, requiring capital investment, different employee qualities, or only new management methods. In the 1980s, Japanese companies challenge the core wrists of Western companies, the difference in operational benefits. During this period, the Japanese people can compete, where they provide a better quality and lower cost. This is very worth noting that many of the current thinking about competition is based on this. Production force Xinjiang border has been introduced out of the region after new technologies and new management methods or new materials. The Internet redefines the production force in the sales work, creates a richer correlation between sales and ordering processes, after-sales service support and other activities. Similarly, the streamlined production involving the entire activity also enables manufacturing productivity and asset usage to achieve substantial improvement. In the past 10 years, the manager is thinking about how to improve homework efficiency. Through similar to comprehensive tubes, time competition, marking learning, the manager changes the performance of the activities, to eliminate the non-efficiency part, improve customer satisfaction, and achieve the best performance. In order to fail to change in the production capacity, the manager also hugs continuous improvement, authorization, change management, and so-called learning organizations. Operational benefits are not possible to have a long-lasting operational efficiency, and it is necessary to achieve excellent profitability, but is usually not sufficient. Few enterprises can have a long-term job efficiency, and they have become more and more difficult to compete in competition. Even if they want to maintain leading competitors. The most obvious reason is that the best pragmatic practices will spread quickly. Competitors will soon imitate the same management skills, new technologies, improve materials, and meet customer needs in a better way. The most general solution, that is, those methods that can be used in a variety of situations, the speed of diffusion is the fastest. Due to management consultants support these perspectives, the tool-efficient tools are more traditional, and hundreds are constant. When the competition of work benefits makes the productive territory forward, each manufacturer faces the same problem. Although this competitive operation benefit has caused considerable improvement, it also leads to unmanned performance. Take the commercial printing machine industry with a US annual output value of 5 billion US dollars: main vendors such as RR Donnelley & Sons Company, Gobeco Enterprise (Quebecor), Global Color Press and Big Big Flower press, etc. Interest rate. Even if the leading Donali father of this industry has continued to maintain more than 7% of profit margins in the 1980s, it fell less than 4.6%. This phenomenon spreads from an industry to another industry. Even pioneers in this new competition form are also trapped in sustained low profit. The operational benefits will go to the co-destruction of the competition that is based on the operational benefits, and each other will be destroyed each other, and the resulting war will only be terminated. In recent years, it has been in combination with industrial integration. From the competitive perspective of homework, it naturally has its truth. However, the vision of the strategy is the driving of performance pressure, so that all enterprises seem to have no better ideas in addition to a competitor. However, competitors who can stay in the market are often those who want to survive longer than other operators in the market, rather than having obvious advantages. After 10 years of progress in the efficiency of operation, many companies are now facing a decline in profits. The concept of continuous improvement has been branded in the minds of the manager, but the tools used are not known to guide companies on the road of imitation and homogeneous.
