nature is speaking Where Is A Company‘ s Nature?



系列专题:《亚洲财富论坛》2008年8月刊

To follow the trend of economic globalization, more and more Chinese companies are taking access to the world platform. It seems that they are not well developed if compared with the international giant companies, especially without a smart nature. In fact, nature is something that addresses a company’s competitiveness.

 nature is speaking Where Is A  Company‘ s Nature?

Where is the competitiveness of the Chinese companies?

     

The core competitiveness discussed here is not marketing, products development or customer service, but as the core advantages exclusively for a company that cannot be duplicated. At present, so many Chinese companies take advantage of low costs as a key way towards more market shares. However, we believe that low cost is not a way for sustainable development in case that the multinational companies have moved their production to the low-costs countries. Nowadays, to meet the economic globalization, the Chinese companies have to get involved in seeking the competitiveness of themselves.

     

China is a large manufacturing country. The companies are seeking more success in globalization, however, globalization doesn’t always mean more market shares and core competitiveness. We conclude that instead of factories, we should build more R & D centers abroad so as to develop the core technologiesand more competitiveness.

      

Actually, the core competitiveness of a company is not shown in a fixed form that without any changes. The companies must develop and adjust the core competitiveness in accordance with their business strategies, market resources and the competitiveness environment.

     

The core competitiveness is to be realized via comprehensive reform of a company, or through other ways such as core technologies. For instance, those manufacturing factories in Jinjiang city, Fujian province have to take measures to avoid severe deficit caused by the rising of raw materials prices and the dwindling of gross interest rates. Hence, they embark on the road of bold reform to create independent brands, so as to win more market shares. We very enjoy that more and more enterprises are promoting their core competitiveness, developing independent R & D, independent production, business operation, hence, to form a perfect industrial chain, and increase their own profits.

       

When facing such a severe competitiveness, the nature will help a company rein the market.

M & A is also a way to competitiveness. The nature of a company should be decided by its inpidual condition and development trend. As for a small and medium company with low added value, the core technology and an independent R & D team will claim considerable costs that do not mean to address the competitiveness, but maybe the break of the capital chain. M & A, although as a quick way, always leads to the waterloo of a company due to the possible failure of management integration.

     

At present, not only the roaring rice price and oil price, but also the inflation in home is challenging the production costs of domestic companies, while it seems that the situation shows no sign of getting better. Actually those companies without nature will get fade out. Therefore, in order to seek the long time and sustainable development, we have to get involved in the mission: where to find the nature of a company?

  

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