Wanxiang: Which giant is the international supplier of parts?
During the economic crisis, before the "bottom dip", Wanxiang may have to re-examine his strategy. Wu Guanqiu, the spiritual leader of the Wanxiang Group (hereinafter referred to as Wanxiang), who has always been sitting at Diaoyutai, may not be able to sit still. "Wanxiang may have encountered the most difficult time since its establishment in 40 years," Lu Guanqiu said in an interview with the media. Since October 2008, Wanxiang’s orders have dropped sharply. In January of this year, exports decreased by 47% year-on-year. Although after February, Wanxiang’s orders for some business segments have improved, it is still difficult to offset the negative effects of the economic crisis. Difficult moments, Wanxiang may also need to re-examine the company's strategy while standing up. Wanxiang: Going Forward The universal strategy has given the outside world a persistent direction in one direction. This is the "stupid approach" adopted by Lu Guanqiu's smart people. It has been a great success - "There is no problem in the general direction. The other is "Time issue", Lu Guanqi disclosed his secret of success. In fact, the fact is not only that. Or misunderstood for Wanxiang, thinking that Wanxiang is sufficiently proficient and profound in certain automobile parts and components, because this is only taken by China's perspective. For the main industry, which is dedicated to the manufacture of auto parts and aims to become a modern company with ideas, its standard of measurement should be higher. In fact, Wanxiang does not only have only one general direction. In particular, Wanxiang in recent years seems to have a little bit of a tendency to develop its name to “universalâ€. The current Wanxiang has also won the initial reputation of Wanxiang in addition to its original position. Apart from the auto parts sector, it also enters 10 major industries such as agriculture, minerals, real estate, new energy, finance, education, and tourism. On the official website of Wanxiang Group, we can see that Wanxiang has at least summarized its business sector into five major sections. From the year the business was launched, about 1999 was a high tide. Among them, Wanxiang Qianchao, Ocean Fishing, Industrial Credit and electric vehicle business all started around that year. Even real estate and property can be traced back to 1993. The business sector is so diversified and its relevance is so far apart that it is far more than Boss, the world’s overlord of spare parts, and Magna, known as the world’s most diversified automotive supplier. Perhaps, in the eyes of Lu Guanqiu, this way, the name of Wan Xiang really matches it! However, in the eyes of the outside world, Wanxiang's business sector is mostly trying out digging pits, which is in line with the commercial logic that Lu Guanqiu always “enters an important area and has to wait for more than four years.†For example, the investment in new energy vehicles with a total investment of 300 million yuan in the past 10 years is only enough to pay for R&D personnel and purchase the most basic equipment. It is clear that Lu Guanqiu is betting on the future of new energy vehicles. Diversification, especially in areas where energy, finance, real estate, automobiles, etc., all require large investments, and for the 47.5 billion yuan of sales in 2008, we must say that we are too scattered! If you think about it again, In terms of investment in the field and management costs, this number may be even less. We have always believed that there are many problems in China's auto parts industry. One of the vehicle observations is that China does not have parts and components companies that can compete with international excellent first-tier suppliers. And Wanxiang Group is considered to be the most likely and earliest to become such a top-notch company. Such strategies and inputs are puzzling and questionable. In contrast, Bosch, who is 10 times as versatile, has become less ambitious. Bosch: It sounds beautiful "Technology is the beauty of life." This is Bosch's brand declaration. At the same time, Robert Bosch, the founder of Bosch, once said: "The worst thing for a company that hopes to have a long-term foundation is no rival." Bosch is most afraid of no rivals. For this reason, in order to not be overtaken by its rivals, Bosch has invested heavily in research and development over the years. In 2007 Bosch's official calibre stated that it reached 7.7%, which is much higher than the investment of less than 3% in Chinese parts and components companies. Bosch's practice has no lack of followers worldwide, but few companies can truly compete with Bosch in related technologies, even if Bosch accidentally cultivated opponents in the 1960s and 1970s. Nowadays, Japan's Denso, which is the second largest component in the world, cannot dare to say that it can surpass technology accumulation. China’s Bosch is the people’s expectation for universality, and it may also be the ultimate goal of universal pursuit. But if you want to pick a learning object, Bosch is really not suitable. Not only is it difficult for Bosch to reproduce the temperament, the technical reserve of Wanxiang, the cultural differences between Chinese and German companies, and the supportive role of Sino-German auto industry infrastructure for parts and components are all very different. It is doomed that Bosch is not a "teacher." Therefore, for Wanxiang, Bosch can only "go far and not play tricks." In contrast, among the world's component giants, the most suitable opponent is Canada's Magna. Magna: Indiscriminate fighting In February 2009, Magna Electronics Group announced the successful acquisition of Suxing Electric in Zhangjiagang City and officially opened on the same day. Hearing this news, it can not help but be amazed at Magna's wide scope of business. It has always been difficult to see Magna's business style. From automobile parts to vehicle production, as long as it is related to automobiles, almost everything is done, it is hard to be positioned as "the third component manufacturer in the world", and Magna is therefore regarded as a global one by the industry. The most diversified automotive supplier. From the point of view of the business involved and geographical area, Magna seems to implement the above concept again. Maybe Magna "has no formula". However, if we carefully analyze Magna's business structure, we will find that more than 90% of its business is still only around the top 10 auto parts business units, and each business has a modular supply capacity. In contrast, the strategic focus of Wanxiang is rather confusing. In particular, Magna is very conscious that it has vehicle production capacity but it has never set foot in the vehicle to avoid the hostility of its customers. This restraint is indeed valuable. In contrast, Wanxiang's entry into electric vehicles will undoubtedly have the opposite effect as Magna. More like Magna Many companies always like to find a reference and learning object in the development process. Although there are many differences between Magna and Wanxiang, it does not prevent Magna from being the best learning object. First of all, the biggest similarity comes from the fact that China and Canada's automobile industry is similar in national conditions - congenitally deficient, and it has little effect on the development of domestic parts and components companies. Second, the development of both Wanxiang and Magna began with the acquisition. Both have a similar history of development. In this regard, although Bosch and other companies have also taken acquisition measures, Magna, as an independent auto parts giant without a background in vehicle attachment, has a more flexible strategy when it comes to cooperation. Concessions. The universality of the depth, breadth, and quality of internationalization should draw on learning and learning. Again, Magna and Wanxiang are family businesses. Although Bosch is also a family business, Canadian culture is significantly more similar to German culture than China. In particular, Magna is worth learning from its expansion strategy and talent strategy. For Wanxiang, although the eggs need to be placed in multiple baskets, they are afraid that there will be no water for drinking. Under the economic crisis, for Chinese companies with slightly better conditions, it is a good opportunity to make adjustments and adjustments, and the premise is to make the company's strategic planning a good one. Toyota Body Kit,auto accessory,Upgrade Kit,Facelift Kit,Conversion Kit Guangzhou YS Auto Parts Co.,LTD , https://www.upgradebodykit.com