Analysis Of Outsourcing Strategies Of Vanke And Nike
The key to outsourcing is to take the business which is not good at and the least value creation from the outside and realize the value increment of the whole enterprise.
At present, the management of a more popular value chain advocates outsourcing the less valuable parts of the enterprise value chain. Nike, for example, focuses on research and development and marketing, while leaving manufacturing to low-cost shoemakers that are constantly changing, first in Japan, Western Europe, South Korea, and then in Chinese Taipei, China and India. It can be seen from such a route that the profit-driven capital has been looking for the lowest-cost outsourcing strategy. It was the cost of labor that determined shoemaking, so Nike eventually moved manufacturing to China, where labor costs were low. Of course, if China enters an era of high welfare benefits and labor costs are similar to those in developed countries, for example: when it is cheaper to drive a car than to take a taxi, then Nike's processing plant will move at that time! Such outsourcing of production is based on the satisfaction of manufacturing quality and low cost.
In addition, there are many virtual enterprises, such as the famous children's clothes of parkland, which do not make children's clothes themselves, but focus on design. The key to outsourcing is to take the business which is not good at and the least value creation from the outside and realize the value increment of the whole enterprise. In fact, China's state-owned enterprise reform has made good use of this strategy. The former state-owned enterprises are large and complete, with hospitals, primary schools and so on. It is like a small society. Under such circumstances, how can we expect elephants to dance?
Therefore, the most important part of the reform of state-owned enterprises is the fire. This is typical of outsourcing what you are not good at. It is through this practice that soes focus on operation and regain their vitality. What corresponds to outsourcing is that the enterprise extends to the upstream and downstream of the industrial chain to achieve synergistic effect, reduce cost and realize value-added. So how should companies choose between outsourcing and integration?
Generally speaking, large monopolistic enterprises tend to integrate the industrial chain. Due to the advantages of capital, they improve the monopoly power of the market through controlling various resources. In order to enter the highly competitive market, some small enterprises choose to focus on their core competitive projects. Gain a share of the market through the transcendence or differentiation of core advantages. Of course, this core competitiveness of enterprises is to be recognized and accepted by consumers. However, in practice, the enterprise's judgment on non-core business is not clear, and it is generally believed that the enterprise's logistics is a non-value-added link, which tends to be outsourced. But such standards are not universal. Joyo, for example, has its own logistics and aims to meet customer needs to the maximum extent possible. Compared with traditional shopping, e-commerce has a convenient feature. You can order the goods you want without leaving the house, but there are also defects, that is, you cannot get the goods in the first time. Therefore, excellence works on logistics, because logistics is the only opportunity to meet customers face to face.
At present two big net buys the book website, dangdang and outstanding are not equal in the purchase operation interface, so only then in the logistics, the warehouse up and down efforts. That is to maximize the variety and delivery speed to meet consumers. It can be seen that customer satisfaction is the primary criterion for excellence in non-core business. By the same token, should companies that are engaged in everyday consumer goods use this as a standard for judging non-core businesses? Therefore, management is really an art, not a pure science. The situation of the enterprise is very different, the simple imitation must not be. Vanke, the industry's leader, has been a firm enforcer of this strategy, an outsourcing enthusiast. Everything is outsourced except "brand", "design" and "manufacturing".
The industry also has the opposite "alien" - country garden. Country garden implements "the integration", will design, the building construction, the decoration, the property management all USES own pattern, even has own battlefield, the cement factory, the brick and tile factory and the vegetable garden realizes the cost control successfully. We can see that companies with different strategies are equally successful. But why? First of all, there are many reasons for vanke to adopt business outsourcing. In my opinion, the main reason is that after the large-scale expansion of vanke, its control power and capital demand are challenged. Therefore, wang shi came up with the idea of outsourcing. And proposed that the new benchmark of vanke is "Nike". I think the selection of this benchmark is not considered. As mentioned above, the quality of daily consumer goods will not become the bottleneck of manufacturers of daily consumer goods after fierce competition. Industry entry threshold is low, in addition to quality, customers also value style and comfort. As a sneaker, the function is also the focus of consumers. Therefore, Nike has outsourced manufacturing to manufacturers in developing countries with good cost performance and focused on its core competitiveness: research and development and brand. Cut off from the red sea and enter the blue sea. Vanke benchmarking as "Nike" do not know whether to consider the difference between the house and shoes?
People can wear a lot of shoes in their life. As a woman, they may buy three or four pairs of shoes in a year. According to the average age of a woman is 80 years old. But can a person buy more than 100 houses in his lifetime? Don't! So what is the core competitiveness of the real estate industry? Isn't it true that the real estate industry is not suitable for outsourcing? Scholars such as harvard business school professor christensen believe that in the early stages of product development, the product's functions are far from meeting the needs of mainstream customers, when the competition between companies is based on product performance. In this case, integrated companies have more advantages than non-integrated companies because they organize all the links in the value chain under the same roof and can develop products with better performance. However, with the development of technology, product performance has been able to meet the needs of most customers, and companies have focused their competition on convenience, customization, price and flexibility. At this point, vertical integration will become a disadvantage instead of an advantage, so the industry will tend to diverge. Whoever controls the interdependent links in the value chain can make more profits. Interdependencies are areas where companies are still trying to meet their customers with better product performance.
This conclusion confirms the above views on shoes and houses. Therefore, vanke's outsourcing starts from the challenge of management and capital, rather than the counterbid with Nike.
