The reasons why the world's top 100 companies have declined in large numbers

Why have the world's top 100 companies declined in large numbers? This article explains it in detail.

Economic historian Leslie Hanna studied the world's giant companies. Except for General Electric and Shell Group, which were among the top 10 companies in 1912, they were still in the top 10 in 1995. All others have dropped out of the top 10. , and has also withdrawn from the list of the former world's top 100 companies. U.S. Steel was the most popular company in 1912, with 221,000 employees. At that time, it was the world's largest and most dynamic market leader. In 1995, it fell out of the top 100 companies in the world. Now it is no longer even among the world's top 500 companies. Pullman and Singer have become yesterday's news. Singer's main product is sewing machines, but Toyota's original product was looms, and now it is the world's largest automobile manufacturer. The American Westinghouse Electric Company, Kadai Meat Processing Company, and American Trademark Company were as famous as General Electric and Procter & Gamble. Now only General Electric and Procter & Gamble have continued to be competitive. The Universal Harvester Company, Anaconda Company, and Jamp; PCoats in 1912 are no longer known. The 1982 book "The Pursuit of Excellence" compiled a list of 43 "excellent" companies. In 1984, 14 of them had serious financial problems. Why do the world's top 100 companies experience a large number of recessions?

1. Many experts believe that companies are unwilling to innovate, causing companies to fall into recession. The author believes that this view may not be correct. Companies such as Sony, Panasonic, Kodak, Nokia, Ericsson, and Alcatel are not without innovation, but are technologically advanced. However, the problem is that they are afraid of affecting their current hot-selling products, which will affect their own. profits, there is no immediate launch of innovative products. Obviously, technological innovation and launching innovative products are two different things. Samsung did not launch mid-to-low-end smartphones last year, and prices have plummeted this year. Samsung can definitely find a Chinese OEM to make mid-to-low-end phones.

2. Some domestic technology companies say they have technological innovation, but they dare not launch technologically innovative products for fear that they will not be mainstream products consumed in the market, and that they will not fit in with the crowd and cause a waste of costs. The author believes that there is no need to worry too much. Differentiated products are the key to victory. If you add more functions to outdated technical products and quickly introduce them to the market, they will still gain hot sales. For example, MP3 and MP4, which were once popular sales, are now hot sales. If you add Internet access, microphones, projections and audio batteries, mobile movies and KTVs will become good companions for traveling on weekends and holidays, and sales will be booming. In addition, tablet computer toys defeated Barbie dolls, which has proved that horizontal transfer of technology can also achieve hot sales.

3. Many companies will innovate in technology, but their sales will only be carried out through channels and e-commerce. There are also traditional TV advertisements followed by new product ordering meetings in various places, and some in major supermarkets, specialty stores, Franchise stores, hypermarkets, department stores. However, it will not carry out unconventional and non-disruptive sales innovation, channel innovation, service innovation, marketing innovation, packaging innovation, style innovation, making it difficult to sell innovative products. For example, China's new energy vehicles will not be sold now. , the result is that the sales of new energy vehicles are not ideal, and it is inappropriate to blame the high price, low cruising range, and lack of a large number of charging stations.

4. The U.S. Steel Company fell into recession because of the lack of globalization. This is a mirror of China’s steel industry. If the Chinese steel industry continues to set up factories in China and does not set up factories in India, Brazil, Indonesia, Africa, Russia and other countries around the world, it will be the fate of American steel companies in the future. If U.S. Steel had set up factories in many countries, then U.S. Steel would still be one of the top 500 companies in the world, and might even be one of the top 100 companies in the world.

5. There are no experts who study world macroeconomics and industry economics, which leads to blindness in enterprise expansion, blindness in technological innovation, and the launch of innovative product strategies that are either premature or stillborn. The result is a decline in market share, financial crisis, excess inventory, or incompatibility with global technology standards.

6. Why are some large enterprises prone to decline? The main reason is the blindness of diversified investment. Although there are boards of directors and shareholders' meetings, it is difficult to grasp the future, and there is no ability to review the reasons for the success of the enterprise. Because enterprise success is achieved through comprehensive factors such as timing, talent, product vacuum period, consumption trends, economic prosperity, pricing, marketing strategies, etc. In fact, sometimes environmental factors account for a large number of factors, and as a result, entrepreneurs believe that they are fully capable. Opening up a second battlefield can cultivate another global flagship product. As a result of diversified investment, because the original industrial talents are laymen in the new industry, even the team of professional managers hired with high salaries only copy industry experience and management, lack economic research experience, lack of corporate sales, marketing, channels, services, brands, Comprehensive and simultaneous innovative research on technology, products, packaging, styles, etc. This is why only 80% of enterprises fail in diversified development. Li Ning brand changed three professional managers in a row, but still could not save the decline.

To sum up, the development of enterprises is like walking on thin ice. If they are not careful, they will lose their market position, blindly innovate, innovate but do not launch innovative products, diversify investment, blindly expand factories, The use of a team of professional managers, lack of globalization, lack of macroeconomic and industry economic experts, lack of innovation experts, lack of disruptive innovation, and failure to adapt to the market and create innovative products are the main reasons for the rapid and massive decline of the world's top 100 companies. We also hope that domestic entrepreneurs will pay attention to these stumbling blocks and be careful not to fall out of the industry leader, China's top 100, and China's top ten positions. ;