Chapter 74: New Business Logic (3)

In the view of Agnelli Jr., it is complete nonsense to insist on what industrial complementarity there is between football and automobiles, and the ultimate purpose of controlling the Juventus club is to shape the corporate image and promote the Fiat brand, as for making himself instead of the old Agnelli chairman of the club, it is hoped that there will be a new and young representative to the outside world, suggesting that the second generation of the Agnelli family has grown up to create conditions for future succession.

After taking control of the Juventus club, maybe you don't expect this club to make money, but you can't lose too much, and you also have high requirements for results, everyone knows that Juventus is now standing behind Fiat, and the club's results and the company's brand value are one and the same - a club with bad results and repeated defeats still wants people to think that his products are excellent?

But little Agnelli won't say this now, because it's all very correct nonsense, and he doesn't believe that his father doesn't understand it.

"I didn't go to business school, so I can't judge whether the professors' theories of industrial diversification are correct, but in my opinion, at least what you've learned is flawed." ”

"Flawed?" Little Agnelli paused, "I don't know what you're referring to?" ”

"Your so-called industrial diversification refers to the expansion to the surrounding fields under the existing level of technology and the formation of intensive advantages, for example, Fiat is good at building cars, then motorcycles can be built, and armored vehicles, tanks, airplanes, and engines that are different from automobiles but have similar technical conditions can be built, is this the theory?"

Little Agnelli nodded and said: "That's true, there is also a saying that it is to open up the upstream and downstream and form a complete industrial chain - for example, if you need steel and aluminum to build a car, then you need a steel and aluminum alloy joint enterprise, and you need bearings, motors and other supporting parts, then you need to open a machinery and motor company...... Of course, it can only be the main parts, and it is impossible to build a factory for each part, which is not economical and unnecessary. ”

Regarding the theory of industrial diversification, Europe and the United States did not form a systematic and complete theoretical discussion until the 1970s, but when management science first took shape in the 20s, some people had already examined the characteristics of this industry, and before the theoretical research, many large enterprises had begun to do so: for example, Krupp company is a typical upstream and downstream integrated diversification, Krupp is famous for manufacturing munitions, in order to ensure the quality of munitions, specially built high-quality steel plants; BMW is a representative of horizontal integration and diversification, and has been involved in the manufacturing of equipment such as motorcycles, automobiles, and airplanes that use internal combustion power, and the product performance is good. Judging by the situation in Italy, Fiat is closer to BMW than Krupp.

Old Agnelli shook his head slightly: "So little Chiano's actions gave me a lot of inspiration, and made me realize that the original business school theory was incomplete and incomplete." Everything that you are analyzing so far is based on your own ability to do what I can do to start the industry expansion. ”

These words made little Agnelli dumbfounded: Isn't it a hooligan to talk about industrial expansion without basing on his own ability?

"There are still limits to your thinking, you think about it from the perspective of supply, emphasizing what I can do, what I can give, have you ever thought about it from the perspective of demand? Have you ever put yourself in the customer's shoes? What does the customer need? What do you crave? Isn't demand more valuable than supply? Heavier or? ”

"I ......" little Agnelli stammered, what does the customer need? Isn't it better performance, better looks, and a lower price? Do you need to ask?

"So you make the same mistake as I used to make, always thinking that you understand the customer, but you don't really understand the customer, or sometimes even the customer doesn't really understand what you need." Old Agnelli smiled slightly, "I'll give you an example, if it's purely in love and doesn't have any utilitarian color, what kind of woman do you want to be your wife?" Do you want her to be gentle and considerate, to manage the family perfectly so that you can devote yourself to your work, and then it is better to want her to be beautiful, generous, decent, and educated...... If your salary is completely sufficient, you probably don't care about what your wife has done before, and even think that running a family after marriage is her career. Am I right? ”

"That's right, that's probably the basic standard."

But this standard is abstract, who knows that there is a term for gentleness and thoughtfulness, but when it comes to individuals, how to call gentleness and thoughtfulness is very different; As for being pretty, perhaps everyone is recognized as the most beautiful character, but in addition to other people, who is beautiful and who is not beautiful is not involved in subjective factors? Old Agnelli smiled, "Do you want to find your wife to draw a portrait and make a table in advance, and then compare them according to the chart one by one?" In your words, the requirements are clearly written on it. ”

Little Agnelli was speechless, Fiat may be able to play this set if he finds a professional manager, and he can also use this set for his wife? That's probably going crazy.

"Now a new question arises, a female radio announcer and hostess, if she meets these conditions, will you marry her?"

Little Agnelli smiled bitterly, he knew that his father had recently become obsessed with listening to the radio, and he had a good impression of the hostess named Adriana, thinking that the program she hosted had a sharp style, comprehensive views, and rigorous logic but was not as aggressive as ordinary media reporters, and he would listen to it whenever he had time, so he naturally used it as an analogy, but he was not easy to answer this question, and after thinking about it carefully, he said: "I probably won't, I don't like women to show their heads." ”

"You see, you actually have an implicit need that your wife can't go out to work, and that need even overrides the previous conditions. Then I will ask you again, the same two people, a woman who is considerate of you is ugly, and her manners are not elegant, and her culture is at the level of elementary and middle school, but she can stay at home for you wholeheartedly; What do you choose for another woman who is considerate of you, who is beautiful, elegant, and highly educated, but who wants to continue her career outside? ”

Agnelli Jr. gritted his teeth: "I would probably choose the latter, but I will try to persuade her to end her career as soon as possible." ”

"So the needs are variable, there are no static needs, many needs in addition to the customer wants to have at the beginning, there will be new needs that you don't imagine waiting for you."

The elder Agnelli took a copy of the "Youth Daily" and flicked it: "As a newspaper founded less than half a year ago, the "Youth Daily" has entered the top ten newspapers in the country in one fell swoop, on what basis? It is a keen market analysis and differentiated positioning! The slogan of the promotion of the little Ziano was clear - this was the second newspaper that the middle class and the intelligentsia needed! He completely avoided competing with other daily newspapers and ordinary newspapers for the family's first newspaper, and if he had faced the competition in this way, he would not have had this advantage at all, and the style of running the newspaper of "Youth Daily" was refreshing, and the middle class and intellectuals who had the ability to pay suddenly realized that in addition to a regular newspaper that provided ordinary daily news, they also needed a newspaper with a vision of observation, analysis, evaluation, and popularization of science. Little Ziano created the demand for a second newspaper! Before the launch of Youth Daily, did anyone think so, did anyone put forward it? ”

"Nope!"

"Let's talk about United Motorcycles, before that, there were no motorcycle products in Italy? Apparently not. There are many motorcycle brands and products in Italy, but none of them have a significant advantage until United Motorcycles comes out. "You also said that they have nearly 5,000 orders, and it will take at least 10 months to deliver them based on the current production capacity of the United Company, so will the people at the back of the queue be willing to wait or move on to other brands?" ”

Little Agnelli's forehead sweated slightly: "I think, maybe, probably choose to wait, right?" ”

"I think so too, the newspaper boast and the advertisements are not much exaggerated - this is the first motorcycle that perfectly meets the ideal needs of the Italian youth, he deserves it, it is worth the wait......" Sr. Agnelli smiled, "although it is more expensive than other motorcycles, everyone thinks it is worth the money, you say, is this demand endogenous or is it channeled?" ”