One day in 1987, Hangzhou Shangcheng District set up a school-run enterprise distribution department. At that time, it seemed to be a normal thing, but because of the addition of one person, this distribution department became unusual again. It is Zong Qinghou.
In 1987, the 42-year-old Zong Qinghou led two retired teachers and started to start a business journey in this distribution department, earning one cent per cent from the sales of soda, ice and stationery papers. . Ten years later, Zong Qinghou became the absolute boss of the Chinese beverage market, and once became the richest man on the Hurun Rich List, and this distribution department has become China's leading big business - Wahaha.
This year, Wahaha has gone through 30 spring and autumn, and entered the age of standing, but the 72-year-old Zong Qinghou did not satisfy the achievements of Wahaha. In the interviews of reporters in the past few days, Zong Qinghou said: Wahaha To transform across borders, cross-border into the biotechnology and artificial intelligence industries. Zong Qinghou’s original words are like this: If you develop a product with hundreds of millions of dollars in food and beverage, it’s not cost-effective to make 20 million of your energy, so we gave up. And if the interlacing is like a mountain, we have a chance to work with some insiders across the border.
This is not the first time Wahaha has transformed.
In 2002, Wahaha announced that it would enter the children's wear market. Zong Qinghou's goal for Wahaha was to set up 2000 franchise chain stores within three months, with annual sales exceeding 1 billion yuan. However, the ideal is full and the reality is very skinny. Ten years later, Wahaha children's wear has a public sales of only 200 million yuan.
In 2010, Wahaha ran into the milk powder market and developed Edison milk powder. At that time, Zong Qinghou set a target of 100,000 tons in 2 years and sales of 10-20 billion yuan. Obviously, this transformation has been ruined.
Zong Qinghou, who was unwilling to fail, announced his intention to enter the liquor industry in 2013, investing 15 billion yuan and going public in 3-5 years. At that time, it could be said that the liquor industry was in a period of depression. The entire liquor industry was in a period of adjustment. It was difficult to declare the entry into the liquor industry during this period. Sure enough, in just half a year, Wahaha's collar sauce national wine came out with a scandal of internal apportionment.
Why does Wahaha fail in continuous transformation?
A comprehensive analysis of the reasons for the failure of Wahaha's several transformations can lead to the following points:
The first is the dictatorship of Zong Qinghou. Zong Qinghou’s management model in Wahaha can be said to be a slogan and a monopoly. With such a management model, it is difficult for the team to exert its greatest advantage. The insiders introduced: "Wahaha has no strategy department, no deputy general manager and other positions. All the company decisions are made by Zong Qinghou. He does not believe in the consulting company, only relying on the ministers who listen to them. Manager. No one dares to make suggestions, and no one dares to attack Zong Qing, even his daughter Zong Yili does not work."
The second is too dependent on channels. This is also the fault of Wahaha when making drinks. Wahaha is a well-deserved boss in the beverage industry, but when it crosses borders to other industries such as children's wear, it does not consider the particularity of the industry, but still follows the path of making drinks. To operate, failure is justified.
The third is to focus only on industry profits, not on analyzing their own competitive strength. In the liquor industry, the liquor industry was in the process of curbing the three public consumption. This policy led to a bleak liquor industry. Wahaha, with the psychology of bargain-hunting, entered the liquor industry, and the end would not be too good.
Wahaha dares to toss, this is a good thing for the company, but to take into account the historical environment and its own competitive strength, and then decide whether to transform cross-border. This time, Zong Qing’s high-profile announcement of Wahaha transformation, is this time again like the previous few times? We will wait and see.
Source: Network
Disclaimer: The copyright of this article belongs to the original author. If you have a copyright issue, please contact us and we will negotiate the copyright issue or delete the content at the first time! Thank you!
Table Top Mini Screen,Table Projector Screen,Portable Screen Outdoor Indoor Screen,Meeting Fast Fold Projector Screen
Dongguan Aoxing Audio Visual Equipment CO.,Ltd , https://www.aoxing-projectorscreen.com