WahahaGroup'sdiversifiedinnovationroad.docx

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1、WahahaGroupsdiversifiedinnovationroad1. CompanybackgroundHangzhouWahahaGroupwasonceaschoolrunenterpriseinHangzhou,ZhejiangProvince,China.ThiskindofcollectiveownershipenterpriseisverycommoninChinaintheeraofplannedeconomy.Thelackofincentivemeasuresleadstothelackofcompetitivenessandinnovationawarenesso

2、fenterpriseemployeesandmanagers,andtheschoolrunenterprisehassufferedlossesallyearround.Withthein-depthdevelopmentofChinasmarketeconomicreform,ZongQinghou,founderofWahaha,andtwootherretiredteachersboughttheenterprisefromtheschoolwithaloanof140000yuan.Atthattime,themonthlysalaryofnormalChineseworkersw

3、asonlyabout80yuan,and140000yuanwasahugesumofmoneyforindividuals.Atthistime,China,scommercialbanksdidnotdaretolendloanstosuchentrepreneurs.ZongQinghouhadtorelyonhisowncontactstoraisethefirstfund.DevelopmentexperienceIn1987,WahahaGroupestablishedandgraduallybuiltaWahahaFoodprocessingplant,anddeveloped

4、anutritionaloralliquidspecificallyforchildrensanorexiainspiredbytheideaofmedicalhomologyofChinesetraditionalmedicine.Wahahabrandbecamepopularinthecountry.Subsequently,WahahaGroupquicklycarriedoutproductinnovationandcontinuouslyenteredthefruitmilkmarket,purifiedwatermarket,fruitjuicebeveragemarket,ca

5、rbonatedbeveragemarket,teabeveragemarket,etc.Throughthecontinuousinnovationoftheenterprise,theproductlineandmarketofWahahaGrouphaveexpandedrapidly,andtheoperatingincomeandprofitoftheenterprisehaveexpandedrapidly.EnterprisestatusToday,WahahaGrouphasbecomethelargestfoodandbeveragemanufacturerinChina,r

6、ankingfifthintheworld.Enterprisescanpaymorethan4billionyuanoftaxeveryyear.Today,Wahahahasnearly160branchesand60productionbasesinChina,withassetsofmorethan30billionyuan.ThecompanyactivelyintroducesadvancedproductiontechnologiesfromtheUnitedStates,JapanandGermany,whichmakesthecompanygainadvantagesinpr

7、oductiontechnology,equipmentandproductquality.WiththepersistentinnovationofWahahaGroup,thecompanyhasmorethan100productvarietiesandhasbecomeamajorcompetitorinthesemarkets.2. MissionandvisionofthecompanyEnterprisemissionisthevaluethattheenterprisebringstotheinternalmembersandexternalstakeholdersthroug

8、hitsefforts.Itisthesignificanceandreasonfortheexistenceoftheenterprise(Davenport,2014).Theenterpriseformulatesitsownorganizationalobjectives,developmentdirectionandstrategyaroundthemission.WahahaGroupscorporatemissionistostrivetoproducebeverageproductsthatcanmeetpeople,sindividualneeds.Suchanenterpr

9、isemissionstipulatesthatWahahaGroupmusttakemeetingconsumers*personalizedanddiversedrinkingneedsasitsenterprisegoal,andtoachievethisgoal,itmustbesupportedbystrongenterpriseinnovationability.Asthepersonalizedneedsofconsumersarenovelandchanging,WahahaGroupneedstomaintainitssensitivitytomarketconsumptio

10、nandfindouttheexistingbutunsatisfiedneedsofconsumersintime.Thisinitselfisanimportanttestofenterpriseinnovationability.Enterprisesneedtolookatthemarketfromtheperspectiveofinnovationandcapturingopportunities,soastoobtainthedirectionofinnovation.Thisalsorequiresthecooperationofenterprisetechnologicalin

11、novation.WahahaGroupneedstomakethetechnologyreachtheprocesslevelofmanufacturingnewproducts.Fromthecurrentsituation,WahahaGrouphasagoodsenseofinnovationandinnovationabilityundertheguidanceofthecompanysmission.Enterprisevisionisthefuturethatenterpriseshopetoachievethroughefforts.Itexpressesthedirectio

12、nthatenterpriseshopetomoveforwardinthefuture(Tremmel,2010).Enterprisevisionprovidesagooddevelopmentblueprintforenterprisesandorganizationmembers.WahahaGroupscorporatevisionistobuildaworldadvancedbeverageenterpriseandbeveragebrandbyimprovingtheabilitytomeetconsumerneeds.ThiscorporatevisionshowsthatWa

13、hahaGroupwillcontinuetoenhanceitsinnovationabilityanddevelopmentpowerinthefuturedevelopmentprocess.WahahaGroupsinnovationperspectivewillshiftfromthedomesticmarkettotheinternationalmarket.Thecompanywillbegintothinkaboutwhatkindofdrinksconsumersintheinternationalmarketneedandwhattechnologythesedrinksw

14、illneed,Howcompaniescanmeettheirindividualneeds.WahahaGrouphasthestrengthtoparticipateininternationalmarketcompetition.Thecompanynotonlyhasworld-classproductiontechnologyandproductionequipment,butalsohassufficientproductionscaleandproductioncapacity.Inordertorealizetheenterprisevisionofbuildingaworl

15、d-classbeveragebrand,continuousproductinnovationistheinevitablechoiceofWahahaGroup.Thisisdeterminedbythediversifiedcharacteristicsoftheworldsdiet.Differenthistoricalbackgrounds,geographicalconditionsandculturalcustomsmakepeopleseatinghabitsallovertheworldhavegreatdifferences.WahahaGroupwantstowinthe

16、loyaltyoftheseconsumersandmustcreateproductsthatmeettheirtastes.Figure1reflectstherelationshipbetweenmissionvisionandvaluesFigure1RelationshipbetweenmissionvisionandvaluesMISSION,VISION&VALUESEnteryoursubheadlinehere1.oremipumdolorsitmclxemIpwmdolorsiametcowctturadpcnge*t,SedconsccteturadpcigCM,scdd

17、oesmodSfnPorkididuntdoeiusmodtemperIncldidumutIdboreetdooremagn.utIiboreetdoloremagn.3. InternalfactorsofthecompanyThecompanysinternalresourcesarethebasisforthecompanytoobtaincompetitivenessandinnovation,andtheyarealsothebasicconditionsfortheenterprisetoimplementthedevelopmentstrategy.WahahaGroupspr

18、oductinnovationisinseparablefromtheresourceadvantageswithinthegroup,whichareformedbythecontinuousaccumulationinthedevelopmentprocessofthecompany.TheinternalresourcessupportingWahahaGroupsdiversifiedinnovationincludethefollowingaspects:(1) Brandfactor:agoodbrandisthefirstcompetitiveadvantageWahahacom

19、panyobtains.Wahahamakesthecompany,sbrandwell-knownbyvirtueoftheadvertisingworddrinkingWahaha,eatingisfragrant.ThethreewordsWahahaareallopensoundsinChinesepronunciation.Thefirstwordmeanschildren,andthetwowordshahaarechildren,slaughter.Wahaha,sfirstimportantresourceistheWahahabrand.Althoughthisbranddi

20、dnotmakethenutrientsolutionsuccessful,itmadethefruitmilkproductsquicklywelcomedbyconsumers.Asthecompanyiscarryingoutrelevantdiversification,Wahahabrandisquicklytransplantedtootherproductmarketstohelpproductinnovation(Jones,2016).(2) Talentandtechnicalfactors:inordertoimproveproductquality,thecompany

21、hasintroducedadvancedautomaticproductionlinesfrommanycountries.Theseproductionlinescanbeusedtoproduceavarietyofbeverageproducts.Atthesametime,thecontinuousaccumulationofproductR&Dandproductiontechnologyhasalsotrainedalargenumberoftalentsfortheenterprise.Thecompanycanusethesetechnologiesandtalentstod

22、evelopnewbeverageproducts.(3) Channelfactors:thecompanyformedacompletesaleschannelintheearlyoperationoffruitmilk,whichincludesmajorretailersandwholesalersinthemarket.AsthemainproductinnovationsofWahahaGroupfocusonvideoanddrinks,thesechannelresourcescanbeuseddirectly.4. ExternalfactorsofthecompanyThe

23、externalenvironmentofenterprisedevelopmentwillprovideenterpriseswithdevelopmentopportunitiesorthreats.Enterprisesneedtodevelopandutilizeopportunitiesaccordingtointernalresourcesandavoidthreatsasmuchaspossible.TheexternalfactorsofWahaha,sproductinnovationincludethefollowingaspects:(1) Governmenthelp:

24、thedevelopmentprocessofWahahacompanyhasbeensupportedbythegovernmentformanytimes.Forexample,in1991,HangzhoumunicipalgovernmenthelpedWahahacompanysuccessfullyimplementtheplanofannexinglocalcannery.Sincethen,thecompanyhasestablishedproductionbasesalloverthecountrywiththesupportofthegovernmentintermsofl

25、andandfunds,ThesearethehelpoftheChinesegovernmenttothedevelopmentofthecompany.Ofcourse,thedrivingforceofthegovernmentcomesfromthepoliticaltaskofattractinginvestment.WeknowthatinacountrywithhighpowerlikeChina,itisdifficultforenterprisestosurvivewithoutthehelpofthegovernment.(2) Economicfactors:themos

26、tfundamentalreasonforthedevelopmentofWahahacompanyisthattheChinesegovernment,srapiddevelopmentinthepastthreedecadesandtheincreaseofresidentsincomeenablethemtoconsumemoredrinks.(3)Policyandlegalfactors:theChinesegovernmenthasimplementedthemarketeconomyreformplansothatFounderZongQinghoucanbuytheenterp

27、risefromtheschool.Withthedeepeningofthegovernmentsmarketeconomyreform,Wahahacancontinuetoexpanditsproductlinethroughinnovation.Thisisanimportantexternalfactorforthedevelopmentofthecompany.5. ThecompanysinnovationstrategicplanObviously,themostsuitablestrategicinnovationplanforWahahacompanyistoimpleme

28、ntrelevantdiversifiedinnovationstrategiesaccordingtothecompanysadvantages.Relyingonitsownbrand,technology,talentsandchanneladvantages,thecompanycontinuestodevelopnewdrinkstomeetthenewneedsofconsumers.Atthesametime,thecompanyalsoneedstopayfullattentiontothechangesoftheexternalenvironment.Forexample,w

29、iththechangesofgovernmentpoliciesandeconomicdevelopment,withtheabnormaldevelopmentofChinasrealestateindustry,peoplesconsumptionexpenditurehasbeenoverstocked,resultinginthesocialphenomenonofconsumptiondegradation.Peoplepaymoreattentiontolow-costconsumerproducts.Wahahacanmakenewinnovationsinthesefield

30、s.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.