Introduction: The internet has reset the business coordinates, and we are still holding maps from the previous era; using maps from the industrial civilization era cannot locate us in the internet era. When determining strategic positioning, companies must choose either low cost or differentiation; the worst strategy is the 'sandwich cookie' strategy, which is neither low cost nor differentiated, and lacks strategic advantage. Over the past 30 years, Chinese companies have started from low cost, conquering global markets and gradually becoming a manufacturing powerhouse, following the low-cost logic. Of course, as low-cost companies, after completing basic capital accumulation, they can gradually transition from low cost to differentiation. For example, Huawei was an early practitioner of low cost, and through massive capital accumulation and R&D investment, it now stands at the pinnacle of differentiation. However, the internet has reset the business coordinates; in the current internet era, the coordinates have been reset to specialization and platformization. Either specialize or platformize; companies caught in the middle, neither specialized nor platformized, will face enormous difficulties. Platform companies often generate massive traffic through a certain product, and on that basis, continuously add personalized products and services according to customer needs. This platform strategy effectively leverages the 'mass effect' (the effect of large numbers). The formula for platformization strategy: N=1 R=G N=1 means Need=One, where demand is fully personalized; R=G means Resources=Global, where resources are globally allocated. Platform companies provide personalized services to customers, but they cannot fully deliver these services by themselves. Therefore, platform companies must integrate global resources to achieve personalized services. In the future, platform companies will emerge in all industries; this is the logic of the internet era. To complete services, platform companies must integrate resources. So, what resources are qualified to be integrated? Those that are highly specialized, focusing on a specific field and perfecting a product or a niche service. In such specialization, all platforms will prioritize integrating them. In the future market, such specialized companies will also have tremendous competitiveness. If we look at current Chinese companies through the new business coordinates of the internet era, we will find that many traditional Chinese companies are almost all in the middle: On one hand, traditional companies are not platform companies because they cannot leverage the mass effect; on the other hand, most companies cannot achieve true specialization, leaving them in a middle state. In the internet era, this is a very dangerous state and unsustainable. For traditional companies in transformation, they face the choice of either moving toward specialization or platformization. For larger companies with strong resource bases, sales channels, brands, or manufacturing capabilities, they can integrate resources, digitize them, open protocols, and open their platforms to allow more specialized companies to do business on them. This is one path to platformization and a transformation choice for large enterprises. For companies with limited resources, strength, or market scale, they should not blindly follow the platform trend. Instead, they should focus on their niche, achieve leadership through continuous technological innovation, and become the preferred choice for all platforms. This positioning is most meaningful for small and medium-sized enterprises, while blindly following the platform trend may pose huge risks for small companies. Therefore, based on the new business coordinates of the internet, large enterprises should build platforms through model innovation, while small enterprises should specialize through technological innovation. These two paths provide clear guidance for traditional enterprise transformation. However, this does not mean both paths are easy. For enterprises, opening up their resources to establish a new 'open, shared, co-created, win-win' business model and ecosystem actually faces many mental model barriers. Traditional large enterprises are unwilling to open their resources or share benefits with other enterprises. As a result, they may hold good cards but eventually be forced to death by other platform companies. So, large enterprises often die not from competition but from their own narrow-mindedness. Small enterprises also face transformation barriers. In the past, small enterprises were accustomed to copying and imitating; suddenly asking them to deeply cultivate, refine, disrupt, and innovate in a specific field is extremely difficult for traditional small enterprises. Most small and medium-sized enterprises lack R&D accumulation, so suddenly engaging in technological innovation is actually very difficult. For small enterprises, the most important thing is not to start from original innovation, but to integrate innovation or introduce mature existing technologies, continuously upgrade and improve products, and gradually build advantages. Traditional enterprises are now facing anxiety and entanglement during the transformation period. Fundamentally, the internet has reset the business coordinates, and we are still holding maps from the previous era; using maps from the industrial civilization era cannot locate us in the internet era, so all enterprises are confused. If they clearly see the internet's business coordinates and quickly find their position, and work hard, they will surely create a large number of platform and specialized companies. However, I believe the internet will not leave much time for enterprise transformation. It is expected that the next three to five years will be the best opportunity for transformation, either into platform enterprises or specialized companies. Those that cannot transform will gradually be eliminated by the market! To some extent, eliminating a batch of companies stuck in the middle is almost inevitable. At the request of many distributor friends, our public platform's fourth B-end e-commerce inspection class will go to Nanjing and Hangzhou from August 15-18 to inspect two platforms: Qianmi.com and Alibaba Retail Link. Distributor friends interested in transformation can join us for on-site inspections: Activity process: Time: August 15-18
15th: Check in at designated hotel in Nanjing; 16th: Inspect Qianmi.com, then take high-speed rail to Hangzhou in the afternoon; 17th: Participate in the 'FMCG Distributor B2B Transformation Exchange Summit'; 18th: Inspect Alibaba Retail Link in Hangzhou; Distributor friends interested in transformation are welcome to join us to learn and inspect on-site: Organization format ************1. Company visit
- Actual market case visit
- On-site explanation
- One-on-one communication************ Participating distributor friends only need to pay a registration fee of 200 yuan. Other expenses are self-covered. Note: This inspection is limited to distributors. Interested distributor friends can register by long-pressing the QR code below. When adding, please note: 'Fourth Session Registration'. Non-participants, please do not disturb. Group photos from previous inspections: Group photo of the 3rd B-end e-commerce inspection, from top to bottom: Yunbao Shangmeng, Weijie City Distribution, Wanshang Yizhan. Group photo of the 2nd B-end e-commerce inspection, from top to bottom: Jinhuobao, Caiba, Yishang. Group photo of the 1st B-end e-commerce inspection, from top to bottom: Piduoduo, Beiquan, Yishang. -END- The best FMCG distributor learning platform in China Focusing on providing professional, practical, and applicable tutorials for enterprises and distributors Committed to helping Chinese FMCG distributors grow rapidly The most professional and practical knowledge base in the FMCG industry Reply with the red number below to get corresponding content Reply with number 1 to view the complete knowledge base | 001 Excellent article selection | 002 Distributor market operations | 003 Terminal visit management | 004 Sales supervisor skills | 005 Sales improvement techniques | 006 Channel expansion | 007 Managing distributors | 008 Distributor development | 009 Distributor internal operations management | 010 Team management | 011 Efficient distribution techniques | 012 Sales manager's eighteen skills | 013 KA operation methods and strategies | 014 First lesson for new salespeople | 015 Internet, brands | 016 Distributor B2B transformation | [Long press QR code to follow]