Chapter 70: Business Models
Chapter 70: Business Models
Up to now, the company has signed more than 30 franchise dealers, and more than 20 of them have started business. There are also more and more orders from consignment stores in the local market in Guangzhou, and fixed orders from Jiayunshan Times and Huadu Yale Group, the company's sales prospects are very good.
Although the company now has five engraving machines, the increasing number of orders is still a big test of the company's production capacity. He Guang divided the workers into daily shifts and shifts, so that they could barely complete the production tasks. He told Lin Qiang that if the bungalows in Yamato Villa started to place orders, the production capacity would not be enough.
Lin Qiang naturally realized this problem early, and the purchase of additional equipment and manpower is simple, but the problem is that the existing workshop can not accommodate so much equipment, and there is no vacant land to build, if you really want to expand reproduction, you have to find another site to build a new plant.
Just as he was thinking about where to build a new plant, he received a call from Yang Jun.
Yang Jun told Lin Qiang that tomorrow he would come to Guangzhou from Panyu to visit a new municipal high-tech development zone near the new Baiyun Airport, where the company was going to open a branch, and that his cousin Yang Ming also intended to move the headquarters of the logistics company there, and asked Lin Qiang to meet tomorrow.
Lin Qiang's heart moved, and Ma thought that he could also consider moving the color carving company to the development zone, so he made an appointment with Yang Jun right now and met in the development zone tomorrow.
The next day, when he met Yang Jun and Yang Ming in the management committee of the development zone, Yang Jun told Lin Qiang that the director of the management committee, Shen Mao, was his college classmate, and the development zone had just been established and was attracting investment everywhere. After Director Shen heard that Yang Jun's Panasonic Group was going to set up a branch factory, he lobbied him many times and promised many preferential conditions, so that he suggested to the group that the branch factory should be set up in the development zone.
"Lao Shen, this is my cousin Mr. Yang, and this is my former co-worker Mr. Lin. In the office of the director of the management committee, Yang Jun introduced Yang Ming and Lin Qiang to Shen Mao.
"Welcome, welcome. Shen Mao warmly shook hands with Yang Ming and Lin Qiang, and took out Softhua and gave everyone cigarettes.
Shen Mao is not tall, wearing a pair of gold wire glasses, after graduating from the Department of Mountain University, he entered the government department, and mixed up in the Economic and Trade Bureau until the deputy department level, after the establishment of this development zone, he was transferred to serve as the director of the management committee.
The director of the management committee of the development zone is a powerful person, who is in charge of the work of attracting investment in the entire development zone with an investment of more than 20 billion yuan. I heard Yang Jun say that as the first brother of the development zone, Shen Mao has the absolute right to speak in the land lease in the development zone, and even privately told Yang Jun that he has the right to grant land at half of the foreign investment price, and can also assist merchants to ask for various tax and policy incentives.
"Mr. Yang, your Xinde Logistics is one of the leading logistics companies in Guangzhou, I heard that your company's main customer is China Southern Airlines, and we are not far from Baiyun Airport, which is just right for you. Shen Mao said.
"Director Shen, that's exactly what I think. We had already driven around the district when we came just now, and the hardware here is very well built, and it is worth considering. At that time, Director Shen will have to give a discount. Yang Ming said with a smile.
"Mr. Yang is relieved, I have been classmates with Yang Jun for many years, you are his cousin, I didn't say it. Shen Mao said very cheerfully.
Lin Qiang thought to himself that the scale of his company was not large, and he could not be compared with Yang Ming and Yang Jun, but he could borrow their name to get a discount at that time, which could also be said to be an unexpected gain.
When he returned to the company and told Wen Jie and Xiaoyan about the plan to build a new factory, the two didn't dare to make too many statements, after all, this was a big decision, not as simple as the company buying two delivery vans in a month, they both said that they would have to discuss with Sister Hua and Cao Xu before they could decide.
Lin Qiang is naturally not in a hurry, the company's production capacity can still cope with it now, and Yang Jun and Yang Ming are not able to settle down all at once. He was anxiously thinking about Xu Chengjie telling him about e-commerce.
Xu Chengjie said that the company's website visits have grown rapidly, and there is a lot of feedback on the Zhaomeng advertisements posted on them, and his two classmates who specialize in e-commerce are also quite optimistic about the company's products.
"Mr. Lin, my two classmates said that they think that our product market prospects are very good, and they intend to join our company, I don't know what Mr. Lin wants?" Xu Chengjie said to Lin Qiang.
"Xiao Xu, you reply to them, our company welcomes them to join. I have already thought about it, the company will set up an e-commerce department, and you will organize the manpower, which will be the focus of our company in the future. You build the rack first, and what equipment you need makes a requisition and submits it to the finance department. Lin Qiang has been paying attention to the interconnected economy during this time, and feels that this new economic model will definitely become popular soon.
Xu Chengjie has been working in the system for many years, and has only been working in Lin Qiang's company for a few months, and has a deep understanding of the difference between private enterprises and state-owned enterprises, private enterprises pay attention to execution, and in his eyes, Lin Qiang is a boss with strong executive power, and this boss is not only very proficient in all the business of his company, but also very good at keeping up with the situation and being good at accepting new things. Working under such a boss, Xu Chengjie has a sense of excitement, eager to give full play to all his talents and make suggestions for the development of the company, which is a feeling he has never felt when working in the system.
As the helmsman of the company, Lin Qiang is obviously thinking more high.
After the operation of the company gradually got on the right track, Lin Qiang, as the boss, let go of the company's production, sales, after-sales and other specific affairs to his subordinates, and he put his energy on thinking about the company's development strategy These high-level work, it, the business model is one of the problems he thinks about the most.
In the eyes of many people, the so-called business model is virtual and unreal, and it is only a metaphysical thing in the category of enterprise, and not much attention is paid to it. Lin Qiang does not think so, he defines the business model as: the core logic of enterprise value creation.
Lin Qiang believes that the business model, as the product of the personalized development of a specific enterprise, must be unique to the enterprise and not easy to be imitated by competitors. Otherwise, the competitiveness of this business model is very fragile, and it is difficult to create a large and sustainable competitive advantage for enterprises. The uniqueness of the company's unique business model (integrating technical characteristics and organizational characteristics) not only determines the difference of the enterprise, but also determines the difference in efficiency and income of the enterprise, and greatly determines the ability of the enterprise to create value.
This value refers not only to the creation of profits for shareholders, but also to the value provided to customers, employees and society as a whole. Since the business model is a process of creating value, the criterion for judging its merits should be the efficiency of value creation.
Enterprises with excellent business models provide certain products and services to the society, and occupy (consume) less resources. The business model is also the collective manifestation of strategic execution. If a company's strategy is disconnected from its strategy and strategic execution, its business model will hardly be excellent.
The success of a business model, in addition to the above-mentioned strategy to achieve market and customer value, establish the technical elements that constitute the core competitiveness of the enterprise, but also in the enterprise and the enterprise management system for organic integration, and with the company's own situation as a whole, the formation of internal and external matching effective model.
A good business model must meet at least two necessary conditions: first, the business model must be a whole, with a certain structure, not just a single component; second, the components of the business model must have an internal connection with each other, and this internal connection organically links the components, so that they support each other and work together to form a virtuous circle.
Of course, Lin Qiang also deeply understands that the key to whether a good business model can play its due role lies in the leading position of the enterprise itself in the industry. Jack Levy, Global Head of M&A at Goldman Sachs, once said, "Leading the market and having a dominant share is a prerequisite for continued profitability."
Based on the absolute advantage of his company's products in the industry, Lin Qiang is determined to create a new business model that can establish his company's market leadership.
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Dear readers and friends, "Confucian Merchant" is the sequel to my other "Time Apocalypse" that is being serialized, if you want to have a deeper understanding of Lin Qiang, Cao Xu, Wen Jie, Qin Xiaohua and others' previous experiences, please read "Time Apocalypse" first, and please give more suggestions, send more comments, thank you!