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MindMap Gallery The underlying logic of business-strategic management

The underlying logic of business-strategic management

A golden summary from business logic books #Strategic management, strategic positioning (what): By discovering and creating differentiation, create selling points that are different from competitors, form your own core competitiveness, and win in the competition through differentiation.

Edited at 2023-09-28 09:29:32

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The underlying logic of business-strategic management

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Outline

The underlying logic of business (1 strategy)

1. Why should we set a strategy?

1. He who does not plan for the eternity cannot plan for a moment; Those who do not plan for the overall situation will not be able to plan for one area

Tactics determine momentary success or failure. Strategy determines overall gains and losses

2. All businesses need strategy

Strategic understanding will determine how far a company can go

Strategy represents the level and wisdom of the business owner

3. Is strategy or execution more important?

Strategy is 100 times more important than execution

Correct direction is the only prerequisite for good results

Lei Jun said: Never use tactical diligence to cover up strategic laziness.

Ren Zhengfei said: Strategic decisions are about direction, and the direction is wrong. The faster you go, the easier it is to overturn.

4. Set the three major goals of the strategy

1. Alive>Core: Resource Matching

2. Stay away from competition>Purpose

3. Pursuit of happiness>end point

The shopping mall is like a battlefield, tactics are methods, strategy is direction

Without a good strategic layout, no matter how powerful the tactics are, they will not be effective.

5. How to make yourself invincible

Big snacks

1. Start first

2. Differentiation

The big one eats the small one

1. Not letting you go first

2. Follow closely (follow the small one and copy and destroy it at any time)

2. What is strategy?

1. Strategy is about trade-offs, choices and positioning

War is deciding what to do, strategy is deciding what not to do

The core key to combat readiness is subtraction, which is called "willingness"

There are two things in life, 1 is to learn to choose, 2 is to learn to give up

Avoid trying to make any money but not making any money at all

Only by deciding not to do something will you have more time to do something

2. Strategy is to think clearly about “whose money to make” and “how to make money”

Three starting points for cultural strategy (why)

mission

Mission is the direction and route, deciding what should be done and what should not be done

For whom? Solving problems for whom?

I want to do something, change some status quo

Mission is when you commit your life to one thing

The starting point is never for money. If you do it for money, your motivation will be limited. Only for the mission will you have endless energy.

Vision

Vision is a banner and motivation. Only with ambitious goals and lofty ideals can there be cohesion and people will follow.

What do you hope to develop into in the future?

values

Values are standards and beliefs. Only with values can employees know what the company advocates and what it opposes, and only then can they reach a consensus and unite the team.

Code of conduct that everyone must abide by

Three major footholds of business strategy

what do you want to do

It depends on what value you create for users and what status quo you can change

what to do

Under the conditions of national policies, competitors, and industry prospects, what can you do and how can you do it without violating the rules?

what can be done

Your core strengths, combined with the decision-maker’s judgment of human nature, make choices about the strategies to be used.

If the customer experience is good enough, it can bring more traffic

3. How to do strategy

1. Different strategies are used in different life cycles of enterprises.

Start-up period

Survive, break even, and quickly validate business models

growth period

Reach strategic consensus and quickly replicate business models

mature stage

Innovate business and explore the second curve

Recession

See clearly the trends in the next 5-10 years, determine new strategic positioning, build an ecosystem in stages, and maintain internal business synergy.

2. Seven steps to implement a good strategy

1. Establish a business model (think clearly about how much money you will make)

OEM (Original Equipment Manufacturer)

Only processing, you can only earn the lowest processing fee

ODM (Original Design Manufacturer) does design and processing, not sales

The profit is higher than OEM

OBM (Original Brand Manufacturer) does its own brand marketing and outsources production

The smartest way makes the most money with the least risk

2. Market research (know the enemy and know the enemy, and you will never be in danger)

Study policies: all industries will be affected by policies

Research your competitors: How to deal with them

Research customers: who are the customers and how are they distributed? Only by being customer-oriented can we find the right direction.

Study yourself: what are your strengths and weaknesses, identify yourself, what to do and what not to do, and find a way out

3. Identify your customers (think clearly about whose money you make)

The clearly selected customers are: governments, enterprises, individuals

Effective customers

Is the precise target customer

Invalid customer

People who have no needs, decision-making power, and cannot bring benefits

risky customers

One is peers: deliberately messing with your customers

One is a defaulting customer: someone who steals your information and breaks the rules

One type is the financially harmed customer: looking for trouble after buying something.

4. Identify the pain points (without pain, there is no need)

The ability to discover customer pain points is your ability to make money

The level at which you solve customer pain points is the level at which you make money.

Real business: What problems does the customer have and what solutions can I give him? At this time, just tell him that I have medicine that can cure your disease. The customer will take the initiative to come to me with money and beg me to sell it to him, so as to prevent me from taking it. Products to promote.

5. Analysis of advantages and disadvantages (grasping competitive advantages)

If there is something that customers really need, but my competitors are unwilling to do, or cannot do well, then we can do it to the extreme, which is our absolute advantage.

The first dimension: cost advantage

We can do it cheaper than our competitors

The second dimension: leading technology

Others can't do it, only I can do it, I have core competitiveness

The third dimension: strong brand

Customers recognize me very much. If they have the same product, they will only choose me. Strong brand value

The fourth dimension: controlling the value chain

Control of upstream and downstream resources is in my hands, and I have pricing power

The fifth dimension: setting industry standards

Those who set standards win the world, such as Apple and Tesla

6. Find niche points (determine the company’s strategic positioning)

It’s a combination of advantages and opportunities

There happens to be an opportunity in the market, and we have the ability to do it, but others can't, are unwilling to do it, or can't do it as well as we do.

It’s not good to give competitors a hard time, but to find solutions based on customers’ problems and needs.

7. Carry out value innovation (business and product layout)

What problems do my products solve for my customers?

A strategic company allows others to clearly understand who it is, what it does, and what unique value it brings.

Business layout is to use several products and services to meet customer needs

4. The underlying logic of the strategy

mission

Mission is the direction and route, deciding what should be done and what should not be done

Vision

Vision is a banner and motivation. Only with ambitious goals and lofty ideals can there be cohesion and people will follow.

values

Values are standards and beliefs. Only with values can employees know what the company advocates and what it opposes, and only then can they reach a consensus and unite the team.

strategic positioning (what)

By discovering and creating differentiation, create selling points that are different from competitors, form your own core competitiveness, and win in the competition through differentiation.

Business layout (how to do)

A series of operational methods to achieve strategic goals