Many types of hardware companies success or failure to see the business model

There are many types of hardware companies. Most of the hardware companies are operating in accordance with their own rules. The operating efficiency is very different from the profit point. Its service targets, competitive advantages, proportion of intangible assets and other factors also have their own characteristics. The classification is divided into four categories:

Third-class hardware companies rely on selling their energy to earn their own employees' money; second-rate hardware companies rely on selling products and services to earn consumers' money; first-class hardware companies rely on selling brands, technology to earn money from other companies; ultra-class hardware companies rely on selling rules to earn money for the entire industry .

First, the third-class hardware companies rely on selling their energy to earn their employees money Third-rate hardware companies selling power, as we say every day, the "processing" enterprises do not have any competitive advantage, rely on other companies to give "quotas", roughly belonging to the "contractor Team" level enterprise. Because of too many competitors, their own strength is not good. They can only make some labor costs by betraying their own labor force and earn the average profit of the entire industry. The hardware company's business model is a hard work for employees in disguise. It is the lowest grade among all kinds of survival methods, but it is the most business model for the number of enterprises in China, among which the township and old industrial bases There are many small and medium-sized state-owned enterprises and small private enterprises.

Second, second-tier hardware companies rely on selling products and services to earn consumers money Hardware companies selling products and services are a form of operating efficiency is not too high, in comparison, selling services is more efficient than buying products.

The disadvantage of selling a product is that the raw material cost of the product itself accounts for a large proportion of the finished product cost, so the profit rate is lower; the investment in production equipment is greater, affecting the turnover of funds; the product is directly supplied to the final consumer, after-sales service The funds and energy spent are greater; the number of customers is larger, and the cost of marketing is higher; the consumer demand for personalization is strong, and it is more difficult for enterprises to meet their needs; the competition is more intense in the same category and the market space is narrow; the protection of consumer rights and interests Various laws and regulations have been introduced one after another, and companies have been suffering from high compensation costs due to careless mistakes; counterfeit products have been banned for many times; business models, industry rules, etc. have been quite transparent to the entire society, and regulations on operations have been standardized and differentiated. Business is difficult. All these problems have hindered the company's operational efficiency.

Compared with selling products, the selling service model has no other advantages other than high profit margins. Both are low-level consumers' demand for money by selling products and services. The most common result of this competition is the price war. It is neither a win-win nor a win or a loss, but a double loss, which is detrimental to the development of both companies and society.

However, there is an exception to the situation where products and services are endowed with added value that can meet the needs of high-level consumers. For example, brand, technology, management, and other added value are added to products and services so that consumers can feel “noble” and “ Satisfaction such as being rich, honorable, and happy, also increases the space between product cost and selling price. The differentiation of products and services caused by brands, technologies, and management is also intensifying, and the price war will never be affected. For instance, Coca-Cola does not lower its prices, and its sales volume continues to increase year by year.

Essentially, as long as the added value of arming products and services with core competitiveness is a higher operating model, it is more comfortable to live.

Third, first-rate hardware companies rely on selling brands, technologies, and management to earn money from other companies. Brands, technologies, and management are all intangible assets of an enterprise. In various forms of capital operations, the expansion of enterprise capital through the sale of these intangible assets is a kind of In the form of efficient capital operation, the world’s enterprises with great development potential and strong growth are intangible assets that are several times more than tangible assets. It is the first capital of an enterprise, and it is also an important capital for enterprises to sell these resources and make other companies’ money. .

Strong brands and a whole set of management system are a huge intangible asset. In terms of brand and management utilization, the main forms are: chain operation and franchising; with a small amount of funds, they can control or participate in shares in the form of horizontal integration and horizontal diversification. Several companies use the low-cost infinite copy feature of branding and management, and transfer and transfer the right to use to perform operations.

Technology is also a very important intangible asset. Regardless of its connotation and extension, our strength cannot compete with well-known foreign companies. However, the only technology that can resist is technology. Our country is in a few areas and The cultural heritage and ethnic characteristics are all our strengths, and there is not much capital investment in a particular area of ​​technology. The cultivation period of product research and development is short, and there are not many high-quality talents involved.

Therefore, in view of China's national conditions, vigorously developing a technology industry with unique intellectual property rights is a road that enhances its own competitive advantages and is feasible and feasible. The main way of technology expansion is to transfer the right to use the split technology or use the right to use it in joint ventures with other companies, holding a large number of satellite companies, and forming a large holding group. At the same time, the use of intangible assets and the local government, financial departments, news media, industrial and commercial taxation departments, consumer associations to carry out various public relations activities, that is to improve their own image, and eliminate the potential conflicts between the enterprise and the above sectors.

When intangible assets such as corporate brands are rapidly expanding, it is a pity that they have not been effectively used. If the demand for products exceeds demand at that time and the sales volume doubles between months and months, it is very easy to use intangible assets for enterprises, or to control a large number of channel companies, and then use intangible assets to compete with competitors. , Doing a good job of public relations with various social groups may be another ending.

Fourth, super-class hardware companies rely on selling rules to earn the entire industry's money Ultra-class companies rely on selling rules to earn the entire industry's money, mainly refers to the use of their own control of the ability to control and control other companies, companies are their own products, is their own piece.

There are many main players in the market: In addition to customers, there are competitors, suppliers/collaborators, alternative manufacturers, and new entrants. These market players participate in competition under certain "rules of the game." It is through the control of the rules of the game that a first-rate company gains a dominant position and gains extra profits. The market share formed by selling products does not have the power to influence the industry. The monopoly of rules compared to the monopoly of the market is a qualitative transcendence.

Companies selling rules and standards are using their own certain advantages to create a business model of spending habits, usage habits, concept habits, industry habits, political habits, monopolistic markets, monopolistic industries, and high profits.