Events: Gome Huang Guangyu return new era of no strategy at all 480 stores
Type of Event: Economics

Daily News: April 14, 2011 AD

Date: April 14, 2011 AD

Time Channel Today in History

Source: 中国经济网

Event Details:

  Professional managers Chen to resign, marking the return to the United States, "Huang Guangyu era." However, this is not the fault of Da, is Huang Guangyu, but he (or cuckoo) invisible hand puppet only.
  Problem is precisely here. In the rational view, Huang Guangyu, "Soul United States" is very terrible, just show a prototype of the modern management system, the United States, instant U-turn back.
  In the observers, the United States in recent years suffered many ups and downs of turbulence accident, root knot just in corporate culture. United States salient features of corporate culture can be summarized as two words: predatory.
  Corporate culture determines corporate strategy, corporate culture must be an unhealthy breeding unhealthy business strategy. The cultivation of corporate culture from the boss, which is why the United States who always reflect high-handed and wolf.
  Unfortunately, the major shareholder of the crisis in 2008, and did not let the United States turn over a new era of soul-searching although Chen Xiao Zhuzheng trying to transform the United States, along with Chen's departure, the United States returned to the old road.
  Home appliance chain start-up period, "staking" beyond reproach, and now, home appliance chain has already completed a secondary market, the layout, should timely from the "store rent-seeking" to "product management", unfortunately, successful experience for the narrow shareholder complacent belief that only large shop can only occupy the leading position, so that a radical like 1958 "Great Leap Forward" strategy came out: in 2011 to open 480 new stores, so that almost all of the attention of the United States can not help surprise: how could that be?!
  We do not know the goal is 480 stores worked out how. People generally tend to believe that this figure was not rational, the result of careful argument, but from a simple arithmetic: the United States lags behind the number of stores + Suning, Suning 2011 store opening program of the United States 480 = shop program.
  Wow, the original strategy can be so developed!
  This is the current manager of the United States level. Can be said that the United States is no longer strategic to speak of. It is also why we basically can assert that: the United States is beyond Suning, has since become an established fact.
  During this time there have been a reporter asked me the same question: Do you think 480 stores the target can be achieved? I can only say: This is the United States financial strength, management capability is a severe test.
  Clearly, the experience since November 2008 more than two years of repeated turmoil, the United States have been exhausted, gaunt, regardless of brand, financial strength or security personnel, have been a different person. Restore large shop this "extension-extension" strategy, the United States is bound to create more "junk shop", "loss of stores," most likely to have low profitability of the United States dragged into the quagmire of a loss.
  We can even predict: as long as short as three years, the country will have to re-embark on "close shop" way. For the moment the United States, the enhance hematopoietic function, rather than the hat and no cattle, may be wise. To some extent, today's challenge Suning United States has no strength, no matter the United States is willing to admit it. Gome and Suning, the competitive landscape, much like the Soviet Union and the United States arms race. However, it is finally brought down the Soviet Union.
  Of course, such talk does not mean that Suning's shop is the right strategy. In fact, both the United States or Suning, are facing the urban market opportunities for smaller, rural markets, the value of a temporary shop does not have the embarrassing situation. Like Beijing, Shanghai, Guangzhou, Shenzhen such as a city, able to open high-quality store location has been very little; and three or four markets have not yet entered a large-scale value. Valuable market basically in the second-tier cities, but it is difficult to say that such a market can accommodate more than 700 stores a year (plus Suning 300) scale.
  I am more inclined to think that this is not a realistic goal, is likely to finish the task and end up, but I still think so desperate to be completed more than the non-sensible. In my opinion, the United States each year expansion plans 200 more realistic, of course, Suning is. China's economy has developed to fight no longer simply the scale of the era, GDP growth adjusted from super 8 to 7, intended to enhance the quality of the national economy. Business, too, quality is more meaningful than size.
  Sub profit model, a direct result of Chinese home appliance chain can not enter the international market to compete. You can immature market in China, maneuvers, but you absolutely can not output the health of non-operating mode. This is what I insist that "to the Chinese home appliance chain is far from being an international" phase of an important basis.
  Unfortunately, as the new boss of the home appliance chain Suning, unable to change this situation; and return to the era of Huang Guangyu of Gome, then are they do not want to change this situation. Therefore, the two giant Chinese home appliance chain does not seem small body mass, in fact, still in the primary school level management level. (Liu Buchen) (Source: People)
  (Editor: Si Han)
Translated by Google

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