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Obstacles to business growth and coping strategies

2024-07-24 00:34:39 Source: Champ Consulting Visits:0

Business growth is the pursuit and goal of every enterprise, but in the process of achieving business growth, we often encounter various obstacles and difficulties. How to effectively identify and deal with these obstacles is the key to the success of enterprises. In this article, I will analyze and elaborate the obstacles and coping strategies of business growth from the following five aspects:

1Market barriers: refers to the changes in the market environment and the pressure of competition, such as the decline in market demand, changes in consumer preferences, the entry and attack of competitors, the restrictions and changes in policies and regulations, etc., which affect the market share and customer satisfaction of enterprises, as well as the income and profits of enterprises. Coping strategy: refers to the enterprise to constantly carry out market analysis and research, understand the market dynamics and trends, grasp the needs and pain points of customers, innovate products and services, enhance brand and reputation, strengthen marketing and sales, expand market share, and achieve business growth.

Case: Starbucks is a world-renowned coffee chain brand. Its development in the Chinese market has gone through three stages, namely: entry period, expansion period and transition period. During the entry period, the market obstacles faced by Starbucks are the unfamiliarity and disapproval of Chinese consumers with coffee culture, as well as the low-end and homogenization of the domestic coffee market. Starbucks' coping strategy is: through high-end store design, high-quality products and services, and diversified marketing activities, to create coffee culture experience and education, enhance brand awareness and reputation, and attract and retain consumers. During the expansion period, the market obstacles faced by Starbucks are the increasingly fierce competition in the Chinese coffee market and the diversification and individualization of consumer needs and preferences.

Starbucks' response strategy is to expand market share, meet the different needs of consumers, and increase consumer loyalty and participation through rapid store growth, localized products and services, and social marketing activities. In the transition period, the market obstacles faced by Starbucks are the saturation and decline of China's coffee market, as well as the upgrading and change of consumer demand and preference. Starbucks' coping strategy is to improve the efficiency and experience of stores, meet the new needs of consumers, and increase the value and trust of consumers through digital store transformation, innovative products and services, and intelligent marketing activities.

2Resource barriers: refers to the lack and lack of various resources needed by enterprises in the process of operation and development, such as the shortage of funds, the lack of talents, the backwardness of technology, the obsolescence of equipment, the instability of the supply chain, etc., which affect the operational efficiency and innovation ability of enterprises, as well as the cost and risk of enterprises. Coping strategy: refers to the enterprise to reasonably plan and allocate resources, optimize the use and management of funds, attract and retain talents, improve the level and application of technology, update the performance and function of equipment, establish cooperation and trust in the supply chain, improve the utilization and value of resources, and achieve business growth.

Xiaomi is a smart hardware and e-commerce company with the Internet as its core. In the early stage of its business, it faced resource barriers such as insufficient funds and lack of talents, as well as immature technology and imperfect equipment. Xiaomi's coping strategies are: to reduce costs and improve efficiency through Internet models and channels, to increase users and revenue through fan communities and word-of-mouth, to attract and cooperate with talents through open platforms and ecology, and to improve technology and equipment through iterative products and services.

3Structural obstacles: refers to the unreasonable and unsuitable organizational structure and process design of the enterprise, such as too many organizational levels, unclear division of functions, complex and inefficient processes, unsmooth cooperation mechanisms, untimely communication methods, etc., which affect the decision-making speed and execution of the enterprise, as well as the innovation and morale of the enterprise. Coping strategy: refers to the enterprise to adjust and optimize the organizational structure and process design according to the development and change of business, simplify the organizational level, clarify the division of functions, streamline the process steps, establish the cooperation mechanism, improve the communication mode, improve the flexibility and efficiency of the organization, and realize the business growth.

Alibaba is an Internet giant with e-commerce as its main business. In the process of development and growth, the structural obstacles it faces are the size and complexity of the organization, as well as the inefficiency and rigidity of the process. Alibaba's response strategy is to simplify the organization and improve flexibility through a platform-based architecture and decentralized management, and to optimize processes and improve efficiency through data-based processes and intelligent tools.

4Institutional obstacles: refers to the imperfection and non-implementation of the rules and regulations and standard processes of the enterprise, such as the lack of rules, the disunity of standards, the non-compliance of processes, the unfair assessment, the unreasonable incentives, etc., which affect the standardization and consistency of the enterprise, as well as the trust and loyalty of the enterprise. Coping strategy: refers to the enterprise to establish and improve the rules and regulations and standard processes, formulate and implement rules, unify and implement standards, supervise and inspect the process, evaluate and evaluate performance, reward and punish and motivate employees, improve the effectiveness and fairness of the system, and achieve business growth.

Huawei is a high-tech enterprise with communication equipment as its main business. In the process of globalization, the institutional obstacles it faces are the inapplicability and non-compliance of rules, as well as the non-uniformity and non-implementation of standards. Huawei's response strategy is to standardize and consistent behavior by formulating and implementing global rules, and to improve and ensure quality by establishing and promoting global standards.

5Cultural barriers: refers to the unclear and uncommunicated cultural concepts and values of the enterprise, such as unclear vision, unclear mission, non-sharing of values, non-dissemination of ideas, disharmony of atmosphere, etc., which affect the direction and cohesion of the enterprise, as well as the creativity and happiness of the enterprise. Coping strategy: refers to the enterprise to clarify and convey cultural concepts and values, formulate and publicize the vision, determine and implement the mission, share and practice the value, spread and carry forward the concept, create and maintain the atmosphere, improve the sense of cultural identity and belonging, and realize business growth.

Disney is a multinational company with entertainment as its main business. In the process of entering the Chinese market, it faces cultural obstacles such as the incomprehension and disapproval of ideas, as well as the non-sharing and non-communication of values. Disney's coping strategy is to integrate and innovate ideas by understanding and respecting Chinese culture, and to share and convey values by displaying and spreading Disney's culture.

 


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