WahahaGroup'sdiversifiedinnovationroad.docx

WahahaGroup'sdiversifiedinnovationroad1. CompanybackgroundHangzhouWahahaGroupwasonceaschoolrunenterpriseinHangzhou,ZhejiangProvince,China.ThiskindofcollectiveownershipenterpriseisverycommoninChinaintheeraofplannedeconomy.Thelackofincentivemeasuresleadstothelackofcompetitivenessandinnovationawarenessofenterpriseemployeesandmanagers,andtheschoolrunenterprisehassufferedlossesallyearround.Withthein-depthdevelopmentofChina'smarketeconomicreform,ZongQinghou,founderofWahaha,andtwootherretiredteachersboughttheenterprisefromtheschoolwithaloanof140000yuan.Atthattime,themonthlysalaryofnormalChineseworkerswasonlyabout80yuan,and140000yuanwasahugesumofmoneyforindividuals.Atthistime,China,scommercialbanksdidnotdaretolendloanstosuchentrepreneurs.ZongQinghouhadtorelyonhisowncontactstoraisethefirstfund.DevelopmentexperienceIn1987,WahahaGroupestablishedandgraduallybuiltaWahahaFoodprocessingplant,anddevelopedanutritionaloralliquidspecificallyforchildren'sanorexiainspiredbytheideaof"medicalhomology"ofChinesetraditionalmedicine.Wahahabrandbecamepopularinthecountry.Subsequently,WahahaGroupquicklycarriedoutproductinnovationandcontinuouslyenteredthefruitmilkmarket,purifiedwatermarket,fruitjuicebeveragemarket,carbonatedbeveragemarket,teabeveragemarket,etc.Throughthecontinuousinnovationoftheenterprise,theproductlineandmarketofWahahaGrouphaveexpandedrapidly,andtheoperatingincomeandprofitoftheenterprisehaveexpandedrapidly.EnterprisestatusToday,WahahaGrouphasbecomethelargestfoodandbeveragemanufacturerinChina,rankingfifthintheworld.Enterprisescanpaymorethan4billionyuanoftaxeveryyear.Today,Wahahahasnearly160branchesand60productionbasesinChina,withassetsofmorethan30billionyuan.ThecompanyactivelyintroducesadvancedproductiontechnologiesfromtheUnitedStates,JapanandGermany,whichmakesthecompanygainadvantagesinproductiontechnology,equipmentandproductquality.WiththepersistentinnovationofWahahaGroup,thecompanyhasmorethan100productvarietiesandhasbecomeamajorcompetitorinthesemarkets.2. MissionandvisionofthecompanyEnterprisemissionisthevaluethattheenterprisebringstotheinternalmembersandexternalstakeholdersthroughitsefforts.Itisthesignificanceandreasonfortheexistenceoftheenterprise(Davenport,2014).Theenterpriseformulatesitsownorganizationalobjectives,developmentdirectionandstrategyaroundthemission.WahahaGroup'scorporatemissionistostrivetoproducebeverageproductsthatcanmeetpeople,sindividualneeds.SuchanenterprisemissionstipulatesthatWahahaGroupmusttakemeetingconsumers*personalizedanddiversedrinkingneedsasitsenterprisegoal,andtoachievethisgoal,itmustbesupportedbystrongenterpriseinnovationability.Asthepersonalizedneedsofconsumersarenovelandchanging,WahahaGroupneedstomaintainitssensitivitytomarketconsumptionandfindouttheexistingbutunsatisfiedneedsofconsumersintime.Thisinitselfisanimportanttestofenterpriseinnovationability.Enterprisesneedtolookatthemarketfromtheperspectiveofinnovationandcapturingopportunities,soastoobtainthedirectionofinnovation.Thisalsorequiresthecooperationofenterprisetechnologicalinnovation.WahahaGroupneedstomakethetechnologyreachtheprocesslevelofmanufacturingnewproducts.Fromthecurrentsituation,WahahaGrouphasagoodsenseofinnovationandinnovationabilityundertheguidanceofthecompany'smission.Enterprisevisionisthefuturethatenterpriseshopetoachievethroughefforts.Itexpressesthedirectionthatenterpriseshopetomoveforwardinthefuture(Tremmel,2010).Enterprisevisionprovidesagooddevelopmentblueprintforenterprisesandorganizationmembers.WahahaGroup'scorporatevisionistobuildaworldadvancedbeverageenterpriseandbeveragebrandbyimprovingtheabilitytomeetconsumerneeds.ThiscorporatevisionshowsthatWahahaGroupwillcontinuetoenhanceitsinnovationabilityanddevelopmentpowerinthefuturedevelopmentprocess.WahahaGroup'sinnovationperspectivewillshiftfromthedomesticmarkettotheinternationalmarket.Thecompanywillbegintothinkaboutwhatkindofdrinksconsumersintheinternationalmarketneedandwhattechnologythesedrinkswillneed,Howcompaniescanmeettheirindividualneeds.WahahaGrouphasthestrengthtoparticipateininternationalmarketcompetition.Thecompanynotonlyhasworld-classproductiontechnologyandproductionequipment,butalsohassufficientproductionscaleandproductioncapacity.Inordertorealizetheenterprisevisionofbuildingaworld-classbeveragebrand,continuousproductinnovationistheinevitablechoiceofWahahaGroup.Thisisdeterminedbythediversifiedcharacteristicsoftheworld'sdiet.Differenthistoricalbackgrounds,geographicalconditionsandculturalcustomsmakepeople'seatinghabitsallovertheworldhavegreatdifferences.WahahaGroupwantstowintheloyaltyoftheseconsumersandmustcreateproductsthatmeettheirtastes.Figure1reflectstherelationshipbetweenmissionvisionandvaluesFigure1RelationshipbetweenmissionvisionandvaluesMISSION,VISION&VALUESEnteryoursubheadlinehere1.oremipumdolorsitmcl<xemIpwmdolorsi<ametco<wctturadpcnge*t,SedconsccteturadpcigCM,scddoesmodSfnPorkididuntdoeiusmodtemperIncldidumutIdboreetdooremagn.utIiboreetdoloremagn.3. InternalfactorsofthecompanyThecompany'sinternalresourcesarethebasisforthecompanytoobtaincompetitivenessandinnovation,andtheyarealsothebasicconditionsfortheenterprisetoimplementthedevelopmentstrategy.WahahaGroup'sproductinnovationisinseparablefromtheresourceadvantageswithinthegroup,whichareformedbythecontinuousaccumulationinthedevelopmentprocessofthecompany.TheinternalresourcessupportingWahahaGroup'sdiversifiedinnovationincludethefollowingaspects:(1) Brandfactor:agoodbrandisthefirstcompetitiveadvantageWahahacompanyobtains.Wahahamakesthecompany,sbrandwell-knownbyvirtueoftheadvertisingword"drinkingWahaha,eatingisfragrant".ThethreewordsWahahaareallopensoundsinChinesepronunciation.Thefirstwordmeanschildren,andthetwowordshahaarechildren,slaughter.Wahaha,sfirstimportantresourceistheWahahabrand.Althoughthisbranddidnotmakethenutrientsolutionsuccessful,itmadethefruitmilkproductsquicklywelcomedbyconsumers.Asthecompanyiscarryingoutrelevantdiversification,Wahahabrandisquicklytransplantedtootherproductmarketstohelpproductinnovation(Jones,2016).(2) Talentandtechnicalfactors:inordertoimproveproductquality,thecompanyhasintroducedadvancedautomaticproductionlinesfrommanycountries.Theseproductionlinescanbeusedtoproduceavarietyofbeverageproducts.Atthesametime,thecontinuousaccumulationofproductR&Dandproductiontechnologyhasalsotrainedalargenumberoftalentsfortheenterprise.Thecompanycanusethesetechnologiesandtalentstodevelopnewbeverageproducts.(3) Channelfactors:thecompanyformedacompletesaleschannelintheearlyoperationoffruitmilk,whichincludesmajorretailersandwholesalersinthemarket.AsthemainproductinnovationsofWahahaGroupfocusonvideoanddrinks,thesechannelresourcescanbeuseddirectly.4. ExternalfactorsofthecompanyTheexternalenvironmentofenterprisedevelopmentwillprovideenterpriseswithdevelopmentopportunitiesorthreats.Enterprisesneedtodevelopandutilizeopportunitiesaccordingtointernalresourcesandavoidthreatsasmuchaspossible.TheexternalfactorsofWahaha,sproductinnovationincludethefollowingaspects:(1) Governmenthelp:thedevelopmentprocessofWahahacompanyhasbeensupportedbythegovernmentformanytimes.Forexample,in1991,HangzhoumunicipalgovernmenthelpedWahahacompanysuccessfullyimplementtheplanofannexinglocalcannery.Sincethen,thecompanyhasestablishedproductionbasesalloverthecountrywiththesupportofthegovernmentintermsoflandandfunds,ThesearethehelpoftheChinesegovernmenttothedevelopmentofthecompany.Ofcourse,thedrivingforceofthegovernmentcomesfromthepoliticaltaskofattractinginvestment.WeknowthatinacountrywithhighpowerlikeChina,itisdifficultforenterprisestosurvivewithoutthehelpofthegovernment.(2) Economicfactors:themostfundamentalreasonforthedevelopmentofWahahacompanyisthattheChinesegovernment,srapiddevelopmentinthepastthreedecadesandtheincreaseofresidents'incomeenablethemtoconsumemoredrinks.(3)Policyandlegalfactors:theChinesegovernmenthasimplementedthemarketeconomyreformplansothatFounderZongQinghoucanbuytheenterprisefromtheschool.Withthedeepeningofthegovernment'smarketeconomyreform,Wahahacancontinuetoexpanditsproductlinethroughinnovation.Thisisanimportantexternalfactorforthedevelopmentofthecompany.5. Thecompany'sinnovationstrategicplanObviously,themostsuitablestrategicinnovationplanforWahahacompanyistoimplementrelevantdiversifiedinnovationstrategiesaccordingtothecompany'sadvantages.Relyingonitsownbrand,technology,talentsandchanneladvantages,thecompanycontinuestodevelopnewdrinkstomeetthenewneedsofconsumers.Atthesametime,thecompanyalsoneedstopayfullattentiontothechangesoftheexternalenvironment.Forexample,withthechangesofgovernmentpoliciesandeconomicdevelopment,withtheabnormaldevelopmentofChina'srealestateindustry,people'sconsumptionexpenditurehasbeenoverstocked,resultinginthesocialphenomenonofconsumptiondegradation.Peoplepaymoreattentiontolow-costconsumerproducts.Wahahacanmakenewinnovationsinthesefields.Atthesametime,Wahahashouldalsopayattentiontothepossiblenewdrinkingdemandofconsumers,suchasenergydrinks,sothatWahahacanalwaysmaintainthevitalityofinnovation.ReferencesDavenport,H.(2014).MissionCritical:RealizingthePromiseofEnterpriseSystems.HarvardBusinessSchoolPressBooks,23(5),pp.64-68.Tremmel,M.(2010).Alterationofintra-aneurysmalhemodynamicsforflowdiversionusingenterpriseandvisionstents.Hbr/JNeurosurgery,44(6),pp.35-38.Jones,D.(2016).Charcoalasadiversificationstrategy:TheflexibleroleofcharcoalproductioninthelivelihoodsofsmallholdersincentralMozambique.EnergyforSustainableDevelopment.