The blogger is engaged in business and has read some books and articles about the relationship between commercial enterprises and competition. Suddenly I have some feelings that I want to share. I invite you to discuss it, listen to your opinions, and learn from your valuable experience.
This is how Baidu Encyclopedia explains commercial enterprises and competition
Commerce is an economic activity that circulates goods through buying and selling, and also refers to the national economic department that organizes the circulation of goods.
Enterprises refer to resident enterprises and non-resident enterprises stipulated in the Enterprise Income Tax Law and its implementation regulations.
Competition is the psychological needs and behavioral activities between individuals or groups trying to outperform or overwhelm each other. That is, the behavior of each participant to maximize personal interests at the expense of others, in order to pursue an attractive goal.
This is just the official explanation. In this highly competitive business world, we can’t help but ask: Why is business getting worse and worse now? Is it because the market is saturated? Is it because consumers are becoming more picky? Or is it because our products and services are not good enough?
Perhaps the answer is not limited to these reasons. The modern business downturn can be a complex issue involving many factors. Let’s explore it together.
First of all, market saturation is a problem that cannot be ignored. With the advancement of globalization, many industries are facing fierce competition. New companies are constantly emerging and launching new products and services. This makes the market crowded and consumer choices more diverse. In such an environment, we must constantly strive to innovate and find unique selling points to attract consumers' attention.
Second, consumer needs and preferences are constantly changing. Modern consumers are becoming more and more picky, and their requirements for products and services are also getting higher and higher. They not only focus on product quality and performance, but also on the brand's values and social responsibility. Therefore, we must better understand the needs of consumers and adjust our strategies in a timely manner to meet their expectations.
In addition, whether our products and services are good enough is also a key factor. In a highly competitive market, only by providing high-quality products and services can we win the trust and loyalty of consumers.
What is a business? When answering this question, many people’s first reaction is that businesses are all about making money!
Yes, I have always thought so before! The book "The Practice of Management" gives a different answer!
▶Definition of enterprise
· Created and managed by people, not by "economic forces";
· Profit is the objective condition of economic activities rather than the fundamental cause of economic activities
The purpose of the enterprise: to create customers
·It is the customer who determines what a business is.
·Only when customers are willing to pay for goods or services can economic resources be transformed into wealth
and goods into commodities.
Main functions of the enterprise: Marketing and innovation
· Marketing: Any organization that achieves its own purpose by marketing products or services is a business
· Innovation: providing better and more products and services
▶ Important management functions of the enterprise
· Effectively utilize all wealth-creating resources – Productivity
Intangible factors: time, product mix, process mix, organizational structure
▶Profit function
· Profit is the result of a company's performance in marketing, innovation and productivity
· It is the only possible way to test a company's operating performance
It’s very deep, I can’t quite understand it, but I feel it makes some sense, but I can’t quite grasp the key points. Maybe I will understand it later, or maybe I won’t. Maybe in the eyes of an expert, in the end, I will see mountains as mountains, and water as water. , I also see mountains as mountains and water as water, but the realm is indeed different. There are still many ways for bloggers to grow.
There are three basic competitive strategies of enterprises: Cost leadership strategy : enterprises gain more market share by effectively controlling costs to make their products or services cheaper than competitors. Differentiation strategy : Enterprises differentiate their products or services from those of competitors through unique product or service design, brand image creation, technological innovation, etc., thereby obtaining higher product or service value and market share . **Concentration strategy: **Enterprises gain a leading position in this field by focusing on and deepening their efforts in a specific market or specific product or service area, thereby achieving high profit margins and high market share. In short: low cost, differentiation and specialization.
This passage resonates with me in my thinking:
Business model is the high-dimensional competition! A business model is a model that sells goods or services to customers through certain channels, builds its own core resources and capabilities, and obtains profits.
The business model determines the competitiveness of the product and is a higher-dimensional competition for the product. A good product without a good business model will have very weak competitiveness.
Different business models for the same product bring completely different profits and prospects to the company.
The five forces competition model was proposed by management guru Michael Porter and is used to analyze the competitive environment in which an enterprise or individual operates.
This model considers that a company's competitive environment is affected by five forces. They are:
(1) The degree of competition from existing competitors (2) The bargaining power of suppliers (3) The bargaining power of buyers (4) The threat of potential entrants (5) The threat of substitutes
Through analysis, we can determine the strength and weakness of the five forces, thereby assessing the competitive pressure and position of the enterprise.
The more intense the competition from existing competitors, the greater the threat from potential entrants and substitutes, and the stronger the bargaining power of suppliers and buyers, representing the stronger the five forces faced by the enterprise. The greater the competitive pressure an enterprise faces, the more passive it will be in the competition. For example:
(1) WeChat: The five forces are weak, face little competitive pressure, and are in an active position in the competition.
(2) Luckin: The five forces are strong, it faces great competitive pressure, and is in a passive position in the competition.
(3) Maotai: The five forces are weak, face little competitive pressure, and are in an active position in the competition.
(4) Douyin: The five forces are medium, the competitive pressure it faces is medium, and it is in a more active position in the competition.
But in the end, it comes back to the essence of business. What is the essence of business?
I think it is just two words : money . The ultimate goal of all business activities is to obtain profits. How to make money?
But I also have a feeling that time is more precious than money, and attention is more precious than time
. Always remember, don’t squander your attention, be sure to focus on making money as much as possible. Don't waste your time, go make money!
But making money also requires tools, and using tools can improve the efficiency of making money! Notion and Python are tools, and personal IP, communities, and self-media are also tools. The more tools you master, the more proficient you will be, and naturally the higher the efficiency and effectiveness of making money will be. .
After the blogger came into contact with business, he felt that his mind was very confused. I hope you guys can give me some advice! ! ! Make money! Make money! Make money!