In order to survive and develop, an enterprise must create value for its shareholders and other interest groups, including employees, customers, suppliers, regions and related industries. If the "black box" of "enterprise" is opened, we can decompose the process of enterprise creating value into a series of different but interrelated economic activities, or "value-added activities", the sum of which constitutes the "value chain" of the enterprise. Any enterprise is an aggregate of activities carried out by its products in design, production, sales, delivery and after-sales service. Every management activity is a link in this value chain. The value chain of an enterprise and the way it carries out a single activity reflect the history, strategy, the way to implement the strategy and the main economic situation of the activity itself.
the value chain can be divided into basic value-added activities and auxiliary value-added activities. The basic value-added activities of an enterprise are "production and operation links" in a general sense, such as material supply, finished product development, production operation, finished product storage and transportation, marketing and after-sales service. These activities are directly related to the processing and circulation of commodity entities. Auxiliary value-added activities of enterprises, including organizational construction, personnel management, technology development and procurement management. Technology and procurement here are generalized, which can include both productive technology and unproductive development management, such as decision-making technology, information technology and planning technology; Procurement management includes not only the production of raw materials, but also the management of other resources, for example, hiring relevant consulting companies to carry out advertising planning, market forecasting, legal consultation, information system design and long-term strategic planning for enterprises.
the links in the value chain are interrelated and influence each other. The management of one link can affect the cost and benefit of other links. For example, if you spend a little more on purchasing high-quality raw materials, you can reduce the number of working procedures, produce fewer defective products and shorten the processing time. Although every link in the value chain is related to other links, the extent to which a link can influence the value activities of other links is closely related to its position in the value chain. According to the flow procedure of product entities in each link of the value chain, the value activities of enterprises can be divided into two categories: "upstream link" and "downstream link". In the basic value activities of enterprises, material supply, product development and production operation can be called "upstream links"; Finished product storage and transportation, marketing and after-sales service can be called "downstream links". The center of economic activities in the upstream link is the product, which is closely related to the technical characteristics of the product; The center of the downstream link is the customer, and the success or failure depends mainly on the customer characteristics.
The basic activities of an enterprise can be expressed by the value chain, whether it is a production or a service industry, but the specific composition of the value of different industries is not exactly the same, and the importance of the same link in each industry is also different. For example, in the agricultural product industry, because the product itself is relatively simple, the competition is mainly manifested in price competition, and there is generally less need for advertising and marketing, and the requirements for after-sales service are not particularly strong. Correspondingly, the downstream links of the value chain have relatively less influence on the overall effect of enterprise management; In many industrial machinery industries and other industries with high technical requirements, after-sales service is often the key to the success or failure of competition.
second, the value chain and the competitive advantage of the enterprise
The basic view of the "value chain" theory is that not every link creates value in the numerous "value activities" of an enterprise. The value created by enterprises actually comes from some specific value activities in the enterprise value chain; These truly value-creating business activities are the "strategic links" of the enterprise value chain. In the final analysis, the advantages of enterprises in competition, especially those that can be maintained for a long time, are the advantages of enterprises in some specific strategic value links of the value chain. The monopoly advantage of the industry comes from the monopoly advantage of some specific links in the industry. Grasping these key links will also seize the whole value chain. These strategic links that determine the success or failure of an enterprise's operation and benefit can be product development, process design, marketing, information technology, knowledge management, etc., depending on different industries. In the high-end fashion industry, this strategic link is generally design ability; In the cigarette industry, this strategic link is mainly advertising and public relations strategy (that is, how to deal with the efforts of various governments and consumer organizations to quit smoking); In the catering industry, this strategic link is mainly the choice of restaurant location.
although different industries have different value chains as mentioned above, the same link has different functions in different industries, but for large-scale enterprises, such as multinational companies, they can spread and transplant in related industries through the key link in the value chain, that is, core competence, so as to improve the competitive advantage of enterprises, especially multinational companies. Multinational companies have the scope economy effect of global cross-industry marketing in international marketing activities. This kind of scope economy effect is obtained by multinational companies through the optimal use of general elements and resources. This universal element can be universal production equipment, management experience, marketing skills and research and development capabilities. Because the existence of universal elements can be found in almost every link of the value chain, when the key link in the value chain of two industries, that is, the core competence needs the same universal elements, multinational companies will spread their core competence in one industry to another related industry, which will transform the scope economy effect into the scope economy advantage. Therefore, the advanced knowledge, experience and skills acquired by multinational companies in marketing communication activities in one industry can be transferred to other related industries without great additional investment. For example, Philip-Moliis Company in the United States is a famous tobacco merchant, which created a global cigarette brand such as Marlboro. After entering the food industry, the company brought its excellent marketing communication skills such as advertising and marketing promotion, making brands such as Miller Beer quickly become the leading brands in the United States and go global.
when multinational companies conduct global marketing, the advantages of scope economy can be transferred to the newly entered national markets at the same time. According to the country's specific market environment, multinational companies have planned to select products from related industries and import them one after another, which has formed economies of scope in market research, promotion skills and the same channels, especially the synergistic effect of promotion behavior, which has important strategic significance for establishing the overall image of multinational companies in the local area. For example, in many countries, including China, Philips has introduced many products from its lighting, microelectronics, computer hardware, household appliances and other related industries, and used the same slogan "Let's do better", which made the company's image very distinct. Despite its poor operating conditions for many years, according to the survey, Philips' popularity in the China market is much higher than that of strong competitors such as General Electric. Other multinational companies, such as the consumer goods industry, have introduced household detergents, consumer paper products, personal care products and food and health products in all countries' markets, which are examples of multinational companies gaining economies of scale.
obviously, to maintain the monopoly advantage of a product, the key is to maintain the monopoly advantage of the strategic link in the product value chain, and it is not necessary to maintain the monopoly advantage in all value activities. Strategic links should be tightly controlled within the enterprise, and many non-strategic activities can be contracted out by contract, so as to make full use of the market to reduce costs and increase flexibility. The monopoly of strategic links can take many forms, which can be monopoly of key raw materials, monopoly of key talents, monopoly of key sales channels and key markets, and so on. For example, in many industries that compete by special skills, such as advertising, performance and sports, this monopoly advantage usually comes from the monopoly of several key talents; In many industries that compete by product characteristics, this monopoly advantage often comes from the monopoly of key technologies or raw material formulas, such as the formula of Coca-Cola and the special seasoning formula of McDonald's "Big Mac" hamburgers, all of which are top secret trade secrets. In the high-tech product industry, this monopoly advantage usually comes from the monopoly of several key production technologies, such as the chip production technology of computers, which has created the global chip giant IN-TEL. Microsoft, on the other hand, has unparalleled innovation ability in the field of computer software. Since its establishment, Guangzhou Procter & Gamble has taken "world-class products, beautify your life" as its business philosophy and established the image of "Procter & Gamble Company, quality products". In order to maintain its concept of high-quality products, the company employs more than 1 professional technicians all over the world and spends 8%-1% of its sales every year (about 5 million to 7 million yuan) on special product research. P&G believes that only by continuously developing product functions and improving scientific and technological content can it occupy the market. The concept of high-quality products is not the same as the national and industrial standards. In order to develop a concept of high-quality products, P&G spends 1%-3% of its sales every year on market research in all aspects. In P&G's words, high-quality products must be products contracted by consumers, and the core functions and peripheral functions of products have become to meet the needs of consumers.
sometimes it is easy to understand the monopoly of the above-mentioned buildings in strategic links directly related to products. Relatively speaking, little is known about the monopoly advantages of various buildings in the "auxiliary value-added activities" of the value chain. Let's try to discuss the monopoly advantage of IBM in organizational structure. The advantages of IBM in the world computer market come from the strong organizational system formed by IBM's value chain layout to a great extent, which is developed in the long-term process of designing, producing, selling and maintaining large commercial computers. As far as the production of personal computers is concerned, IBM is quite backward; None of the key production technologies of personal computers are in IBM's hands. However, IBM's global organizational structure and maintenance service network, as well as the reputation of "high quality service" established over the years, are beyond the reach of other companies. Although IBM does not produce any key components of personal computers, the original components used in personal computers marked with IBM brand are all purchased from other companies, but IBM brand personal computers are still favored by consumers, and the price is higher than other "miscellaneous" computers with the same quality. The main reason here is that IBM's reputation and global sales, maintenance and service organization system provide consumers with the quality assurance that is extremely needed to buy technically complex products. Because this kind of quality assurance is a strategic link in the value chain of personal computer production and marketing, and IBM has a monopoly advantage in this link, which makes IBM, which does not produce personal computers, become an important industry giant in the personal computer industry.
third, the choice of value chain and international marketing strategy
from the analysis of the concept and composition of value chain, we know that the value activities of enterprises can be divided into two categories: "upstream link" and "downstream link". In the basic value activities of enterprises, material supply, product development and production operation can be called "upstream links"; Finished product storage and transportation, marketing and after-sales service can be called "downstream links". The economic activity center of the upstream link is the product, which is closely related to the technical characteristics of the product, and its efficiency affects the whole value chain system. For example, once new products and processes are developed, they can be applied in many markets and regions, and their advantages are of universal significance.
correspondingly, if the upstream link plays a key role in the marketing of a certain product, depending on the product technology and mass production, its competitive nature is likely to be a "global market" type of all-round three-dimensional competition, and large commercial passenger planes, cars and computers all belong to this category. Therefore, if the transnational operation of enterprises mainly depends on the advantages of upstream links, they can adopt "global" marketing strategies. The homogenization trend of some consumer demands in the international market also supports this strategy.
Although the cultural background of different countries' markets is very different, the requirements of products and services in different countries' markets are similar. Consumers all over the world are absorbing what they think is good from other societies. From spiritual products to material products, a new consumption phenomenon-a consumption trend across cultural boundaries-is taking shape. This situation, to a great extent, comes from education and the transmission of knowledge. Education leads to a higher level of technological achievements, and at the same time, it will eliminate the differences in lifestyle. In addition, the promotion and popularization of media, especially television, and the development of the Internet have also accelerated the development of this trend. Because of the development of these modern media means, people can immediately get all kinds of information in modern life in the world. The barriers to political, economic and cultural exchanges have been greatly reduced, and international exchanges at all levels have become more and more close, and the world is getting smaller. Young people in Denmark, Germany, Japan and the United States all grew up eating hamburgers, wearing jeans and playing guitar. Their lifestyles, ambitions and wishes are very similar.
For those big companies that are famous in the world, such a consumption trend is a welcome opportunity, which they are trying to promote day and night. The homogenization of demand can greatly reduce the inventory, procurement and production costs of manufacturers and increase their competitiveness. By creating famous brands and urging consumers with different cultural backgrounds around the world to pursue famous brands, these enterprises can get huge sales revenue and considerable profits. A survey of 9, consumers in 14 countries in the United States, Japan and Europe by a consulting company in the United States shows that the top 1 famous brands in the world are Coca-Cola, Marlboro, IBM, McDonald's, Disney, Sony, Kodak, Motorola, Gillette and Nike, and these brands all belong to top multinational companies.
Once multinational companies realize some * * * characteristics caused by the cross of Chinese culture, they can design global general products, change the explanatory text with the same advertising knowledge, and promote to various markets in the world with the reputation and credibility of multinational companies and their own channels. "The product of multinational corporations" is not only an article with use value to meet people's material needs, but also a value complex and a cultural feeling that can meet people's spiritual and sensory needs.
on the contrary, it is the economic activities in the downstream links. The center of the downstream link is the customer, and all kinds of business activities (such as advertising, channel strategy, promotion methods, etc.) are closely related to the characteristics of consumers, and the competitive advantage of enterprises is transferred according to the local supply and demand situation, customs and culture in the market. For example, powerful sales channels and popular advertising language often have local characteristics, so it is difficult to simply copy and transplant them. If the advantages of downstream links dominate the marketing of a product, the competitive nature of the industry is likely to be a "multinational market" type of independent local competition model. Enterprises that compete internationally by virtue of the advantages of downstream links often have distinctive local and regional colors, and successful strategies in the local area may not bring success to other markets. In this regard, the world's two major consumer goods giants Unilever and Procter & Gamble have had similar lessons.
Since Unilever entered the China market, it has suffered a lot and summed up many lessons: don't treat China as a single market, and all regions are collecting money.