Polaris Company has undergone great changes last year. Both the company structure and product types have been carefully and rationally sorted out, thus forming new development momentum.
Although the previous Polaris Company had a very large industrial scale, it adopted a business department system. A business department would be established for each product family to conduct business operations in this area.
This model forms a large enterprise system, and the system is very bloated. If it were not for the participation of intelligent management systems in management, the efficiency would definitely be very low.
Although the efficiency is still very good compared to other large companies, the problems that have arisen are actually gradually emerging, but they are not so obvious yet.
It was because he saw this clue that at last year's annual meeting, Zhao Yi specifically proposed that some companies should carry out reforms and adopt a more effective business development structure, so as to rejuvenate the companies.
Therefore, in addition to continuing to expand the company's production capacity and product types and exploring the boundaries of its business operations, the most important thing for Polaris last year was to carry out corporate structural reforms.
They reorganized the previous business department system into a subsidiary business model to give the subsidiaries more independence. At the same time, in order to create a competitive atmosphere, they also implemented a dual subsidiary model.
It has split its home appliance industry, consumer electronics industry, small electrical appliance industry, various electronic product parts and other businesses, carried out more reasonable business re-planning, and formed more subsidiaries for more professional operations. .
After this reform, hundreds of subsidiaries suddenly appeared under Polaris Company, and the head office basically retained the financial rights, supervision rights and senior management personnel rights over the subsidiaries.
Subsidiaries have great autonomy over their business operations. Only when serious unreasonable situations occur, the parent company will intervene and use its own temporary control system.
The purpose of retaining the temporary control system is to prevent the subsidiary's business strategy from seriously affecting the overall plan and thus damaging the overall interests. Under normal circumstances, this method will not be used.
This is actually easy to understand. When Zhao Yi thinks about problems, he does not just think from the perspective of interests, but also considers the impact on national interests and the impact on the domestic business environment.
So sometimes, he will deliberately damage some of his own interests in exchange for other interests, and it is very likely that the subsidiary will not consider this too much when operating.
In fact, apart from becoming more independent in operations, there have not been many changes in other aspects. Even the corporate management system still uses the same system as that of the head office, so that the overall coordination of its industries can be carried out.
The advantage of subsidiaries is that their operations are more flexible, but the disadvantages are also obvious, that is, they lack the advantages of group operations. The enterprise management system continues to use the original method, with the purpose of strengthening communication capabilities between subsidiaries.
As Zhao Yi said before, "When we gather together, we are like a ball of fire; when scattered, we are filled with stars." In addition to realizing more flexible operating characteristics of subsidiaries, we must also maintain the group's combat capabilities that already have great advantages.
Because the individual strength of the subsidiaries after being split is much weaker than before, and many subsidiaries even have annual revenue of less than 10 billion yuan, they do not have an advantage in international competition, especially in the competition between giant companies.
In addition to having partial authority over subsidiaries, the head office's more important role is to incubate new industries. When the new industries reach a certain scale and meet the conditions for independence, they will become independent in the form of a subsidiary.
For example, the smartphone industry of Polaris Company is a new industry. It is currently in the industry incubation at the headquarters of Polaris Company. If the performance is still outstanding this year, it means that it has the conditions for independence, and there is a high probability that it will be released to the outside world.
The main purpose of this is to gather more resources and provide more support for new industries, so that new industries can grow at a faster speed, and to prevent new industries from dying due to fierce market competition before they have grown up.
The entire reform was basically completed in half a year, and the speed was very fast. The main reason was that they learned a lot of experience from the independent operation process of Polaris Game Company, and it did not require a long time of exploration.
Of course, this is also related to the fact that their original business model tends to be relatively independent. The departmental system has actually divided the business clearly, which just makes them more independent.
The benefits are also very obvious. Attentive people will find that in this year, many brands that have never been heard of before suddenly appeared in the domestic electronics manufacturing field, and the brands are richer than before.
For example, among the home appliance brands under the Polaris Company, Polaris was the most well-known, while other brands were gradually disappearing. However, Polaris was the largest in the market, and many people had never even heard of other brands.
This is because Polaris Company's original brand awareness is relatively high, so when it is split into subsidiaries, one of them will inherit the Polaris brand, while the other or multiple companies must create their own brands.
Of course, it is definitely very difficult to create your own brand, so the head office will also give them more support, such as capital, technology, market, channels, etc., so that they can gain a foothold faster. .
The fastest way to gain a foothold is to look for differentiated competition. Therefore, the market found that brand products that had not been heard of before suddenly seemed to explode, quickly flooding the market in large quantities, and the prices were cheaper than the Polaris brand.
This is not because new brands can only operate in the mid-to-low-end market, but because the brand is not well-known and if they want to grow rapidly, they can only adopt this method: first establish a foothold, increase brand awareness, and then improve their own positioning.
In order to avoid malicious competition between its homogeneous companies, the headquarters has also established a special coordination organization called the Industrial Development Coordination Committee, in which the heads of its subsidiaries are all members.
If the head office discovers that there is serious malicious competition, it will hold a coordination meeting, assess the impact of the incident, and conduct internal coordination to achieve the purpose of healthy competition.
Competition can promote market prosperity and self-improvement, but malicious competition can easily cause adverse effects, especially when companies are in their own industries, and may harm overall interests.
In fact, it has been proved that this step was done very well. After the structural reform was completed, the operating income of the entire group achieved relatively strong growth in the second half of the year, and the overall market share showed a rapid increase trend.
In the past, in order to maintain its high-end brand image, Polaris Company did not cover many mid- and low-end fields. After this reform, subsidiaries that did not obtain the original brand management rights had to start from the mid-to-low-end market.
This has caused other mid-to-low-end brands to suffer. Although their brands are newly established and their brand awareness is not high, their technology, channels, capital, etc. are not weaker than their counterparts at all, and they even have advantages.
Therefore, they quickly established a foothold in the mid-to-low-end field. Since they are fighting externally, they do not have too many worries about using various commercial methods. Naturally, they are losing ground to other brands.
Although the profit margins of mid-to-low-end brands are low, the overall revenue is not small, and the development of these mid-to-low-end brands has also promoted the rapid development of Polaris' parts and related parts suppliers.
This allows traditional businesses that have gradually fallen into silence to suddenly take on new vitality. Instead of finding sources of profits, as before, they can only rely on constantly looking for new businesses.
At present, these separated subsidiaries mainly focus on operating divided businesses. Because the time is too short, they cannot discover new industries and markets on their own, which still requires a certain amount of time to cultivate.
In other words, the head office is currently doing much better than its subsidiaries in terms of incubating new industries, but it is difficult to draw conclusions about the future situation.
Because subsidiaries will directly face the pressure of industrial competition, in order to develop better, they must have greater initiative than the parent company, and they will be more active than the parent company in developing new industries and finding new markets.
Another important element in the business operation process is R&D capabilities. Currently, exclusive research institutions are under the jurisdiction of the parent company, and subsidiaries can set up their own R&D departments.
These two types of research units are very different. The research institute of the head office mainly focuses on the research and development of high-tech and is more strategic, while the subsidiary's own R&D department mainly conducts product research and development to meet market demand.
For example, the basic research and development of third-generation semiconductors falls within the research scope of the head office, but the actual application of third-generation semiconductors in electronic products is the business of the R&D departments of each subsidiary.
In the final analysis, the research institution at the headquarters focuses more on basic research, while the research departments of each subsidiary focus more on applied research to form mature products that can be sold directly to the outside world.
The head office's research is to ensure the foundation and potential of the development of its electronics industry, while the subsidiary's research and development is mainly to meet market demand and earn more income. The two complement each other.
The reason for this setting is that after the reform, the head office will face much less revenue pressure and can rest assured to carry out long-term research and development planning.
The subsidiaries, on the other hand, are facing the pressure of market competition and have no intention of conducting basic research. They are more focused on pursuing short-term interests and achieving corporate revenue growth in a short period of time.
After this reform, Polaris' traditional business revenue achieved an overall growth of about 30%, which may not seem like much, but in fact this performance is already very remarkable.
Polaris Company achieved a record of total revenue exceeding one trillion yuan in 1985. However, in 1986, excluding the contribution of new businesses, the overall growth rate of traditional businesses was only 10%.
This is in sharp contrast to the rapid progress in previous years. This is one of the important reasons why Polaris Company took rapid action to carry out overall corporate reform after the annual meeting.
Although it is large in size, it is naturally difficult to develop rapidly. But if we look at this growth rate, it will not be long before the opportunity is likely to be surpassed by other companies.
In 1985, Polaris's emerging business was tablet computers, which were Polaris' pioneering products and brought hundreds of billions of dollars in revenue to Polaris.
At that time, their tablets were mainly supplied to Chinese education companies and other domestic enterprises, and other markets came to a standstill because there was not enough production capacity to meet all market demand.
In 1986, their tablet computer was officially launched on the market. Unlike in 1985, it was an internal purchase and little was known to the outside world.
Even so, Polaris sold 100 million tablet computers worldwide in 1986, with an average selling price of 1,500 yuan each, and achieved revenue of 150 billion yuan.
Revenue was basically the same as in 1985, but profit margins were much higher. In 1987, their global sales of tablet computers further increased, reaching 150 million units.
However, the price has dropped to 1,000 yuan, and the average price is 1,200 yuan, achieving 180 billion yuan, a slight increase from before, and it is likely to basically remain at this level in the future.
The reason for launching lower-priced tablets is mainly because tablets and smartphones have certain overlapping functions. The emergence of smartphones will inevitably compete with tablets.
Therefore, in order to stimulate consumers to buy tablets, it is inevitable to launch more cost-effective products. Otherwise, if it is too expensive, consumers will consider buying smartphones first.
However, with the adjustment of the company's structure, cheaper tablets of different brands may be launched this year, and the price is likely to exceed the 500 yuan mark, which is inevitable.
In the past, Polaris Company had a monopoly position, but now it cannot use subsidiaries of the Polaris brand. In order to expand its business, it is inevitable to lower the price of its own brand of tablet computers and win more consumer markets.
The latest new business last year was smartphones. Global shipments reached about 85 million units, with an average price of 1,700 yuan and sales revenue of 144.5 billion yuan.
Although it seems lower than the tablet business, it is created in about half a year. If it is expanded to one year, the sales revenue will definitely be much better than the tablet business.
Another business last year was also very important, that is, smart home. The entire smart home can cost up to 100,000 yuan, involving almost every aspect of the home.
In fact, ordinary people simply use a complete set of smart homes and purchase them selectively. The number of complete sets purchased is very small, so the average sales price is not that high.
According to statistics from Polaris, the average price for households to purchase smart homes is 20,000 yuan, and a total of 100 million units have been sold worldwide, achieving sales revenue of 20 billion yuan.
If the overall price does not drop, it will be difficult for smart homes to experience explosive growth. According to relevant data, it is estimated that the number of smart homes will be around 5 million units per year at most, with annual revenue of approximately 100 billion yuan.
However, with the establishment of subsidiaries, mid- to low-end smart home brands will bring more choices to users, which may promote the development of the smart home market.
However, the development of smart home in the business field such as hotels is even better than that in the personal consumer field. In this field, a total of 2 million units have been sold globally, with an average price of 50,000 yuan per unit, achieving a revenue of 100 billion yuan. income.
Here, the high-end hotels and business conference venues owned by Shangtong Trading Company have basically replaced smart home products, greatly improving their high-end brand influence.
As Shangtong Trading Company has significantly replaced its smart homes, other international high-end hotel and business service brands are also gradually replacing their own home systems to provide customers with a better service experience.
To be honest, this kind of operating income is higher than the global smart home operating income in the previous life. On the one hand, there is currently only Polaris Company operating a high-end smart home brand.
On the other hand, the smart home launched by Polaris Company has a higher level of technology than previous smart homes, making more consumers willing to pay.
Leaving aside the rest, Polaris' smart home central control system is artificial intelligence. It is not an ordinary mobile phone operation interface. It is technically a level higher than it.
The core of the entire smart home is not the specific subsystems, but the central control system created by artificial intelligence technology. With this central control system, home life will have a completely different experience.
As for artificial intelligence technology, currently only Zhao Yi has it in the world. Other companies have not even touched the threshold of artificial intelligence. It is very difficult to copy the smart home industry of Polaris Company.
The reason why the technology was raised to such a high level at once was to set an industry benchmark from the very beginning. If other companies did not have this capability, they would naturally not dare to get involved easily.
As the smart homes of Polaris' mid-to-low-end brands enter the market this year, the market size of smart homes will be further increased, making more consumers willing to try the extraordinary experience and services brought by smart homes.
The smart home market performance of Polaris Company is actually beyond Zhao Yi's expectation, because the current smart home market is still slightly higher than residents' income.
Moreover, in order for consumers to make the decision to replace the products in their homes, they must be very attractive, otherwise few people will replace them in a short period of time.
Since the launch took only about half a year, he thought it would be good to have sales revenue of tens of billions. However, he did not expect that the total sales revenue would reach 120 billion yuan.
If the development trend of last year is maintained, the smart home business of Polaris Company this year is likely to reach about 300 billion yuan, becoming a veritable super new industry.
This is just a conservative estimate. According to Polaris’ ambition, what it wants is for smart homes to completely replace existing home products and achieve a disruptive revolution.
The global home furnishing market has a total annual market size of several trillion yuan, involving home appliances, lighting, security, kitchenware, sanitary appliances, home environment, etc. This is why Polaris' complete set of smart home products is so expensive.
If Polaris Company develops effectively, it can at least cut off a trillion-yuan market. The specific effect remains to be seen how it performs this year.
This is because Polaris' mid- to low-end brands will enter the smart home market this year. If the mid-to-low-end market performs well, it means that ordinary consumers recognize smart homes. The reason why they did not buy them before was because the price was too high. .
And around the concept of smart home, the traditional home appliance industry and new businesses of Polaris Company can also develop greatly, at least much better than they are now.
Later, Zhao Yi learned about the development of Polaris Game Company alone. The reason why he was so concerned was mainly because the global game market is not small and it also has cultural influence.
Although the film and television music works produced by the long video platforms of Qingning Entertainment Company and Xinghan Technology Company play a certain role in exporting Chinese culture.
However, many countries have already mastered this kind of cultural export, so other countries are more alert. In addition, with the obvious cultural gap, the greatest impact is still on my country's neighboring countries and Southeast Asian countries.
Although through the ATV global TV channel, global TV audiences can see our country's film and television dramas and other cultural works, which has a certain influence, it is still relatively limited in general.
Games are different. In the past, games were only at the level of pixel games. The influence of cultural output was very limited, and countries did not conduct in-depth research on this.
The game products of Polaris Game Company directly KO previous game developers with their advanced technology and richer plot display.
The current global game industry is either owned by the headquarters of Polaris Game Company, or the global studios controlled by Polaris Game Company, which also receive technical support from Polaris Game Company.
It is basically impossible for traditional movies, TV dramas and music to achieve the control of the gaming industry. Therefore, in terms of cultural influence output, Polaris Games has demonstrated much stronger capabilities than Lime Entertainment.
In the past, Polaris Game Company could only release a dozen games to the market every year, which was already quite high-yield. Like other game studios, it might only take several years to release a game.
Later, in view of the limited talent scale of Polaris Game Company and the heavy research and development tasks, which resulted in frequent overtime work, Zhao Yi helped them develop more efficient programming tools and a more intelligent game engine.
After using these efficient tools, the overall work efficiency has increased by 50 times. Not only does its employees no longer need to work overtime as crazy as before, but the output is also very impressive.
Coupled with the increase in human resources brought by talents entering the game industry every year, last year they launched a total of 60 game works on the market, all reaching the 3A level.
These are just their stand-alone games. In addition, there are also online games and mobile games. Not only are they huge in number, but their quality is also very high.
In terms of stand-alone games, although too many works have been launched, the sales of a single work have previously declined, and the price of a single work has also dropped by 25%.
However, they still achieved an average global sales of 50 million per work, and the average price of a single work was US$60. Although it was US$20 lower than the previous average price, it was still acceptable.
Because of the increase in quantity, it will be difficult to maintain the original price. If you want to buy more quantity, you can only lower the price. Otherwise, no matter how much consumers like it, they will not be able to spend so much money on game consumption.
In fact, this price is still a bit high. As the number of products launched by Polaris Games Company further increases, the price will be further reduced in the future, and the average price is likely to drop to around US$40.
In their game works, although they do not deliberately emphasize the national background, in some places, they still inadvertently add Chinese cultural elements into them.
Therefore, game players will unknowingly become accustomed to the cultural background knowledge about China. Although it is relatively scattered, it can achieve certain results in the long run.
And after playing Chinese game products for a long time, gamers will also have a good impression of our country, just like when we were children, we liked to watch RB cartoons and had a good impression of RB.
Otherwise, given the historical entanglement between our country and RB, how could there still be fine people? This is all the result of the long-term cultural export, which has led some people to rely on their love for a certain aspect to extend their love as a whole.
Anyway, most people are unable to experience and investigate on the spot, so they rely on half-dozen things and beautiful imaginations in their minds to form their understanding of another country and nation.
This kind of cognition lacks comprehensiveness and makes it more difficult to access deep-seated issues. It may not be of much use to researchers who specialize in research, but for ordinary people, the effect is much better than that of large monographs. .
In particular, our culture itself has great appeal. First, our culture has a long history and there is an obvious gap between it and Western civilization. The distance will also produce beauty.
On the other hand, our country's economy has developed rapidly in recent years. Our products are available everywhere in the world, and the proportion of high-tech products is not low. These in themselves have a good publicity effect.
Cultural promotion without hard power is actually very difficult. No one will believe that the culture of a weak country is attractive. It will only create doubts. Otherwise, how could it fall behind.
Therefore, to improve our country's cultural influence, we must have both deliberate cultural export methods and hard power as the backing. At present, our country already has such conditions. (End of chapter)