Coating industry value strategy upgrade two concepts

The essence of the value chain strategy is to become the organizer of the industrial value chain, which is the secret of the success of a century-old enterprise. The so-called value chain organizer does not mean to have a full value chain, but to effectively organize the various links of division of labor and cooperation, and then open up the value chain to continuously create and innovate value for the end user. When the value chain is opened, the value is constantly being created.

Value chain management, it is important to let the coating company's value chain get the best passability. And this optimal passing ability will become the optimal value chain. Therefore, what kind of position the paint company occupies in this value chain becomes a problem we have to think about.

The value chain strategy is actually a choice for coating companies in the six models. This aspect is the choice of values, that is, what kind of enterprise a paint company wants to be. On the other hand, it is the de facto choice, that is, what kind of resource conditions and opportunities for paint companies in the existing market structure and economic environment to complete the construction of a certain strategy.

When it comes to the six models of the value chain strategy, we must first distinguish between several concepts.

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The first concept is the value chain potential.

There are several links in an industry value chain, some are the organizers of the industry value chain, others are participants and organizers, one is the leader of the value chain, and the other is the participant of the value chain. . This is the starting point. In reality, paint companies are leaders or participants in the industry value chain. Or from the perspective of future development, if the paint industry wants to be a leader or want to be a participant, the different modes of choosing its value chain strategy are different. Therefore, the so-called value chain strategy model should be divided into these two states to explain. You are the leader and have these patterns of strategy. You are a participant and have a model of both strategies. If you want to turn from a participant to a leader, you need to restructure the value chain strategy. All in all, the model of this value chain strategy is related to the position of the coatings company in the value chain, and the companies in different positions use different models. Of course, the choice of mode is also related to the state of the resource.

The second concept, the strategy is dynamic.

This means that strategy is a constant consideration for all coatings companies, how to make strategic upgrades and how to make strategic transformations.

Upgrade and transformation are two concepts. The upgrade refers to the continuous optimization of the efficiency of the value chain management, and the value of the value chain is constantly being amplified.

There are two directions for upgrading the value chain. One is to constantly innovate the value of customers. In the end, it is for the ultimate consumer, the process of production distribution exchange, and ultimately for the thrill of goods to money. To create value for consumers, consumers are willing to buy your products and become partners in your value chain. This means that you must constantly innovate around customer value. This is the most important direction of a strategic upgrade, and it is usually what the value chain leader is going to do.

If the coatings company can't do this, it's easy to be abandoned by the value chain or beaten by other advantageous value chains. Just as Kodak and Canon are fading in this competitive process, because they can't create value for customers.

Another direction of the value chain upgrade is to improve the operational efficiency of the value chain. The value chain is the synergy between the various links, and this kind of synergy will face the problem of whether the efficiency is optimized. If you can find a way to continuously improve the efficiency of the value chain and provide the same or different value with higher efficiency, that is, to innovate customer value, then this efficiency-optimized person can also win.

Strategic transformation refers more to shifting from a value chain participant to a value chain leader. It turns out that you are joining the value chain of others, or an organizer of the value chain, now you have to find a way to become an organizer. The risk that the organizer usually faces is the possibility of being abandoned by others at any time. Unless you think in terms of the value chain strategy and continue to contribute to the efficiency of the value chain, you can easily become a deserted person. In addition, the value distribution obtained by the value chain participants is small, because this kind of profit distribution is led by the leader. Therefore, if some paint companies want to become a better paint company, they can find a way to transform from a participant to a leader.

This is the map built around the value chain strategy. First, let's see if the paint company is a leader or a participant, and then answer whether the future company wants to be a leader, or whether to continue to retain the status of the participants, or what resource conditions the paint company has, making you a leader or a participant. Based on this premise, we will build a model of value chain strategy, make choices from it, and then continue to focus on customer value and improve the efficiency of the entire value chain to make strategic upgrades. Coating companies can maintain a state of continuous growth.

Editor in charge: Shanghai GO Jiaju

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