The innovation of barriers model: Where there is a will, there is a way no barriers, only ability

Yesterday, the Shenzhen Automotive Electronics Industry Association held the third member conference and the general election meeting. The former president of the company, Yang Sheng, talked about the urgent situation of the current automotive electronics and the future. The current car sales decline, the stock market shrinks, the real estate market is priceless, the auto industry's shareholding ratio is liberalized, the market has become particularly fierce. In 2020, whether the auto brand can be evenly divided, is still like Luo Fat, the bigger the bigger Stronger strong? I couldn't help but start thinking about the word "barrier". If you can't count it as yes, how should it break?

Open barrier reinforcement means that although the imitator can enter the industry, it is difficult for the imitator to pose a threat to the pioneering enterprise due to the existence of “preemptive advantage”. There are seven ways to create barriers traditionally:

First, predominate

The first advantage is to enter the market first, or to occupy the core technology of the industry first, compared to the entrants have a competitive advantage. For example, Daphne, a famous women's shoe brand, entered the mainland market as early as 1988, gaining a preemptive position and setting up a retail network to promote the brand. The retail network spread all over the place, Daphne products quickly occupied the market, and its brand was deeply embedded in consumers and became China. The first brand of women's footwear. The latecomers are not lacking in outstanding companies, but they still cannot shake their dominance.

It should be emphasized that because of the preemptive barriers, the core is the first and the first, but it does not mean that the first one is the first. If the products and services can not occupy the consumer's brain, the first launch is also a loss. The occupation is from occupation to permanent occupation, and some are unbearable. Therefore, only occupying the minds of consumers and holding them in perseverance is the core of the prevailing barriers. Others can't be used, and they can't be preoccupied. There are many people who talk about PPT in the industry. Most of them say that they have a preemptive advantage. However, just like the smog in Beijing, people can't see it at all.

Second, brand barriers

Since consumers have formed a certain degree of consumption habits and brand awareness for some well-known brands, it is necessary to overcome the psychological perception of consumers by making consumers change from buying in-place brands to buying new ones. It is also difficult because consumers have a conversion cost in the process of converting brands. Rational consumers will not choose new brands under the conditions of certain interests. This kind of consumer's psychological cognition brought by incumbent brands It constitutes a brand barrier.

For example, German football players basically choose Adidas brand sports shoes. In their view, it is illogical and unimaginable to wear shoes of other brands. For example, people who are used to drinking Coca-Cola can let them drink Pepsi. They are also unwilling, and companies with star brands often have strong brand barriers.

 Third, patent barriers

Patent barriers determine the invention and create good rights and affiliation through legal procedures, effectively protect inventions and create results, and monopolize the market in exchange for maximum benefits. In order to fight for initiative in the market and prevent infringement, some also use patents to specifically file lawsuits to prevent others from imitating new technologies, new products, and patent barriers developed by enterprises.

For example, disputes between Samsung and Apple, the recent disputes in various types of automotive technology, and the realization of all kinds of fancy claims and public relations are all manifestations of patent barriers. The essence of patent barriers is innovation, but it also prevents innovation.

Fourth, exclusive agreement

This refers to the time and scope of the stipulation. The transferee performs exclusive treatment on technology and cooperation. For example, Dangdang, Gome and other platforms have signed exclusive agreements with relevant manufacturers, which is a commercial protection for both parties.

V. Trust barriers

Trust barriers are also an important part of building corporate barriers. He is regarded as a collateral in the minds of consumers. The differentiation can be embodied as “becoming the first, leading position, classic inheritance, market focus, most favored, and popular. "A lot of different ways, now updated advertising methods, avoiding some vocabulary, these credibility people are becoming more credible." For example, the most commonly used slogan for boss appliances is “34 years of high-end, 15 years of sales lead”, the brand department said, this is based on its own history and domestic market performance consciously refined, after someone told him this is called a credibility It can enhance the credibility of the brand; while Fangtai Kitchenware emphasizes “selling better” than foreign brands, using sales data to allow foreign brands to endorse their positioning as “high-end kitchen appliances experts and leaders”; Technology uses the "car bus data application leader" to explain their understanding and penetration of car data, which is a barrier to deep technology.

 Sixth, trade secrets

Trade secrets are information and business information that are not known to the public, can bring economic benefits to the right holder, are practical and take confidential measures by the rights holders. For example, the Coca-Cola Company has the most effective barriers and artifacts. The Coca-Cola formula, for more than a hundred years, is unsurpassed. In the current globalization of science and technology, many new technologies have not been patented and have been hidden.

Seven, industry standards

Industry standards refer to the uniform provisions of repetitive things and concepts. Based on the neutralization of science, technology and practical experience, they are subject to consensus by relevant parties or consciously abide by specific forms in the industry. The basis and basis. Therefore, there is a first-class industry to do the standard, and other follower companies also abide by this standard or agreement.

Most of the above-mentioned ways of setting up barriers are being used. However, some enterprises have broken through the tradition and built unique capabilities through the deviant thinking. Through the continuous strengthening of this ability, not only competitors are difficult to follow up, but also make consumption addictive. Specifically, there are four ways:

The first is the unique resource capacity barrier.

By building unique resource capabilities that make it difficult for opponents to copy, I will give you two examples.

The first one is the typical representative of Tetra Pak. In the early years, Tetra Pak was a company that sold packaging equipment. His business model was not to make money by selling equipment. He gave the equipment to the dairy, juice, herbal tea companies and let them try it for free. He relies on packaging materials and consumables to make money. It seems to be similar to the current water-supply water heater. Therefore, the packaging materials produced by Tetra Pak have become the preferred packaging materials for almost all mainstream dairy companies in China. How does Nile Lele become the size of today, because he is not only sending equipment, selling consumables, but more importantly, he has a set of methods to promote the large-scale use of consumables by its downstream companies.

A company with similar production equipment in China, one of the biggest weaknesses, the biggest risk is that you send the equipment to the downstream manufacturers. The sales of downstream manufacturers have not come up, the consumption of consumables is very small, and the model of free delivery equipment is simply a natural disaster. Destined to lose money.

Tetra Pak is different from other companies in helping Chinese dairy companies develop marketing plans, assisting dairy companies in negotiating and establishing distribution channels, and bringing world-class management solutions to help dairy companies establish retail terminals. Dairy companies are trained by Tetra Pak. The company has completed, and even a joint venture between a multinational giant such as Danone and Bright, Mengniu and Wahaha, thanks to Tetra Pak's behind-the-scenes push.

The second is the speed barrier

Setting speed barriers generally includes methods such as technological innovation speed, new product launch speed, and iterative upgrade speed. For example, the Dell computer in fashion, the fashion industry fast fashion represents ZARA. From the time of the cabinet, China's service industry is generally 6-9 months, international brand name can generally reach 120 days, ZARA is 7 days minimum, usually 12 days. This decisive 12 days, ZARA's sensitive supply chain shows the rhythm that makes China's "world factory" dwarf. ZARA launched 12,000 kinds of fashions in a year, and the amount of fashion in each model is not big. Even if it is a best-selling model, ZARA only supplies a limited amount. In a specialty store, only one or two styles are sold. goods. "Manufacturing shortage" has cultivated a large number of loyal followers, "multi-style, small batch" ZARA achieved a breakthrough in economic scale. They have more than 400 designers. These designers are typical aerial trappers. They enter and exit various fashion venues, conferences, and counters. The designs are designed to keep up with fashion trends and launch items at the fastest speed. The factory is directly produced and the logistics is in place. At the same time, the design team also held a conference call with the store managers around the world in real time to understand the sales status and customer feedback, and flexible design of the product. ZARA guarantees the maximum sales rate of the product, effectively lowers the inventory and saves costs.

Thread has been accumulating in the field of automotive CAN bus data. It is the leading bus data application service provider in China and belongs to the automotive technology company. There are three business concepts of Thread: 1. Technology accumulation. All projects must have technical accumulation, and projects with technical accumulation are the first priority. 2. Development trend. All customers and projects for the services provided must be development-oriented and avoid repetitive R&D. 3, reasonable profits and customers, either do not do, do the best. Some people will ask, reasonable profits are easy to understand, and customers have reasonable and unreasonable points? In this regard, there is. Each iterative product only serves 1-2 customers, ensuring market differentiation and cooperating customers to maintain industry leadership. Therefore, the Thread is also beyond the traditional vision, is also a unique and terrible place, its own ability to make money and customer value is firmly bound, providing customers with unique value, only to meet the industry trends of product and technology accumulation .

In 2014, when others started the new energy 32960 GB standard machine, Thread had to consider the use of the car to introduce the TBOX for time-sharing. When the industry entered the time-sharing TBOX in 2018, the Thread has been launched. The VBOX terminal V8 based on driverless data acquisition covers the market of automotive CAN bus data application fields in these years, and the legs are short and not fast.

The third is the barrier to scale

Many industries, especially in the B2B sector, are difficult to achieve by making large-scale competitors, which is the barrier to scale. Among the barriers to large-scale construction, who is the largest and whose barriers are high. And as the scale expands, its traditional brand barriers will be improved accordingly. Therefore, although the scale barrier has been in operation for many years, it is still an important strategy for many enterprises. For example, the scale effect has made Lenovo PCs top, and many companies in the automotive manufacturing and spare parts sectors are mostly. Lenovo's scale is achieved through mergers and acquisitions, among which Lenovo's acquisition of IBM computers is Lenovo's most important acquisition. At that time, Lenovo acquired IBM's global PC business with a $650 million advanced, $600 million company stock, and transferred IBM's PC business $500 million in debt to Lenovo.

The acquisition includes all manufacturing, R&D, sales channels, customers, brands and patents related to IBM laptops and desktops. The acquisition that did not become a "snake swallow" in the past provided Lenovo with access to the United States, India, and Japan. A shortcut to the market. The latest THINKPAD series products still contribute a considerable percentage of revenue to Lenovo Group.

For Lenovo's summit, some believe that Lenovo's success in the PC industry this year is partly due to the transformation of competitors and frequent mistakes in the PC market. Dell turned to high-profit PC field, HP's PC business is uncertain, Acer's growth is weak, ASUS Riding uphill and downhill strops has become an important background for Lenovo's growth.

 The fourth is the barrier to capital operation

With the rise of the capital market in China, many companies have taken the capital to attack the city in the domestic market, which has become an important obstacle for many companies to follow up and copy.

The home textile industry itself is a very low-concentration industry. The industry is full of competition, the market is over-subdivided, and the technical threshold is low. All along, the industry has imitated and copied into the wind, which makes it difficult to have a national brand. Looking at the corresponding information, around 2009, with Luolai Home Textiles, Fu Anna and Meng Jie successively registered in the A-share market, the three home textile enterprises began to take capital power to stage a competitive drama in the country.

After the Raleigh Home Textiles raised funds, the selection of the location of the direct project will be expanded. In the big cities, the cities with greater strategic significance will carry out the construction of direct sales outlets at high speed; while Mengjie Home Textile will expand the franchise chain, increase the The support of franchisees has increased the credit period of franchisees; Fu Anna has helped franchisees to increase sales capacity. They provide employee training programs for franchisees, provide renovation guidance and subsidies to franchisees, provide marketing strategies and digest inventory, enjoy company advertising resources, and more.

The gods fight, the road is the suffering of the people. Under the help of capital, the internal competition pattern of the industry has gradually evolved from “the competition of the masses” to “three pillars”, and at the same time, it has formed a situation that cannot be surpassed by tens of thousands of small home textile enterprises across the country.

When we think about the moat, we must think about what we are going to do. If it is a product, then do a good job. If it is a platform, we must establish an ecosystem so that everyone on the platform can Profit.

If you are in a vertical position, you will engage in horizontal orientation. This is a Chinese characteristic. If you can create new value without problems, for example, no one is good at cloud, you should do a better cloud, but if someone does a search, you will search again, you Nothing creates value for society, and it will be pulled out by others. ——Cheng Wei

At present, there are more than 300 autopilot companies in China, which have become a red sea. There are nearly 200 cars built on the Internet. It is impossible to get a license in 200 homes. It is expected to survive 3-5, which is worthwhile. The merger is a natural elimination of no value. In such a big environment, what companies need to do is to consolidate and improve R&D capabilities and strengths, and to specify clear strategies to ensure continuous innovation and development.