It's mid year and the industry is too competitive. What should we do?

It's mid year.

Half of the time has passed, I wonder if you are satisfied with your state and results?

If satisfied, then I want to congratulate you. Especially in such a challenging environment this year, it's not easy.

But more classmates have told me that my industry is too competitive. What should I do in the second half of the year?

I want to go to other industries and companies, is that okay?

I also want to share some thoughts with you.

A mindset

My industry is too difficult to do, and the competition is very fierce. I used to work in overseas markets, but now I want to return to China. Is that okay?

I was in my previous company, which was very boring. The ceiling looked very low, and I wanted to start my own business. Is that okay?

To be honest, when I hear such a question, I hesitate a bit whether or not to answer it.

Why?

Because these issues reflect their underlying mentality: they oversimplify the problem and believe that other people's things are too easy to do.

I often say that the essence of business is trading. Trading requires a market. A market is a place where there are buyers and sellers.

And almost all markets will gradually move towards full competition. In a highly competitive market, an important manifestation is that competition is extremely fierce, and more directly, profits are thin.

At this time, I often ask them a question in reverse:

Why do you think other people's industries are not competitive when you think your industry competition is fierce?

Because other industries are naturally easy to do? Because others are dumber and not as smart as you? Or is it because just changing industries can make money?

Obviously not.

So my suggestion is also to adjust your way of thinking and mindset first.

In many cases, business is a siege. People outside want to go in, people inside want to come out. But people inside and outside finally felt inappropriate.

What is a relatively more correct way of thinking and mentality?

I want to enter another market, not because I can't do it in the original industry, but because you think you can do better than others.

That's the only reason.

Only by doing better can we survive in the competitive market and get higher profits.

Therefore, it is not to "retreat" to other industries, but to really "enter" an industry.

But how to get in?

I'll tell you a story.

a story

I have a friend who did one thing that made me admire him very much.

He once went to a cafe. At night, when the cafe was closing, the staff were cleaning up.

The staff took out the bread that was not sold out today from the cabinet and prepared to throw it into the trash can.

As soon as my friend saw it, he said, how can this be done? it's too wasteful. How to throw it.

But the staff explained that because we only sell the fresh bread of the day, this is our promise to consumers. If we can't sell it, we can only dispose of it.

Selling only the day's fresh bread is a promise to consumers. Sounds reasonable. However, it is still too wasteful for you to throw away the rest of the bread.

Otherwise, since you have to throw it away, you might as well sell it to me at a discount, which is good for both parties.

Guess what the staff said?

Sir, I'm sorry. There is no discount option in our cash register system. If you want, buy it now at full price. If you don't, I can only throw away all the bread.

Too unreasonable, too ridiculous.

However, it is this kind of irrationality, this kind of absurdity, that makes my friend keenly aware of an opportunity, an opportunity for a "temporary food" track.

If the cost of a loaf of bread is 10 yuan, the cafe sells 20 yuan. Then why can't we sell it to consumers at a discount of 15 yuan, 14 yuan, or even cheaper before closing?

In this way, the cafe can recover the cost, and consumers can also benefit, because the efficiency is improved, and they can share a little bit as a platform.

Then, he made an APP himself and entered a new industry with this new business model.

He found the pain point, and has the ability to solve the pain point, and can solve it more efficiently than others, of course, it is easier to achieve success.

Now, his business is already a very head player on this track and continues to grow rapidly.

After reading this story, you should have a little feeling and know what it means to really "enter" into an industry.

What about ourselves? Do you have any specific ideas?

three suggestions

I have three more important suggestions.

The first suggestion is to have an unbiased self-perception.

To enter an industry, we need to do better. However, do we really have such level and ability?

Many times, we often look up to ourselves.

There is a very interesting experiment, you ask at home, let each family member say their share of housework.

Mom may say she did 60%, dad may say she did 30%, you may say she did 20%, grandparents may say she did 10%.

But at this time, you add up and everyone has done 120 percent of the housework together.

It is very likely that everyone overestimates their contribution.

We must have an unbiased perception of ourselves.

Everyone's self has four parts, the open self, the blind self, the secret self, and the unknown self.

If you want to have impartial self-awareness, the most important part of exploration should be the "blind self" that others know but you don't know ".

When you want to change your business and go to another company, listen to other people's comments, especially some relatively negative comments.

Some words are true words against one's ears. Don't shield yourself. It's a mirror where you can see yourself as you really are.

Don't refuse, cherish.

Second advice: Think of 10 times as good.

Many people want to change industries to get better growth.

But how much is the increase? 20%?30%?

Neither is good. If you are more capable, you should think about 10x good strategies.

This is not to say that there must be 10 times, but not to solidify in linear thinking, but to force yourself to think of more ambitious and innovative methods.

Otherwise, after entering an industry, they all want to grow by 20%, or they are optimizing or facing fierce competition.

I have a 531 strategy. Look at five years, think about three years, and work conscientiously for one year.

You have to do it every year, that's for sure. But why look at five years and think about three years?

It's about being sensitive to change, being able to see roughly the right direction, and not going the wrong way.

In the specific implementation, you can refer to Google's practice. Google allows its engineers to have 20% of their free time to research their own projects and do things that interest them.

The same goes for you.

In addition to ordinary work and career, we must devote special time to thinking. Find opportunities that are truly worthy of your entry into the industry.

The third suggestion: is to understand scarcity and scarcity flows.

In any industry, the more scarce it must be, the more valuable it is. But what is scarcity and what is scarcity flow?

Let me give you an example.

You usually eat noodles at home, maybe 20 yuan a bowl. But you get to the airport and you find it's 100 bucks a bowl. The price is just ridiculously expensive. However, the extra money you spend does not all go into the pockets of the merchants. It is not that the merchants have hacked it, but that the rent at the airport is too expensive. Most of the extra money goes to the airport.

However, is it okay not to open such an expensive rent? It doesn't matter if you don't open it, many people want to open it. Luxury shops, new energy car display shops, souvenir shops, are all rushing.

Supply and demand determine the airport rent. Airports are more scarce and more profitable here.

Scarcity will flow. Let me give you a more intuitive example, and you will understand.

Everyone is doing live broadcast, who do you think is scarce now?

At first, it was an anchor, and when no one could, the person who could broadcast live was valuable.

But now that many people rush in, anchors can be trained and produced in batches, and those who teach live broadcasts may make money.

At the back, there are more MCN organizations, and everyone finds that the products sold by the anchor are the key. Who can master the supply chain, who can deliver good products, who can make money. supply chain capabilities, become scarce capabilities.

Scarcity will keep flowing.

Sometimes, it is not necessary to change your career and enter a new industry. It is also a good way to find the flow direction in the value chain and enter a new link.

Re-understanding and understanding of scarcity, scarcity flow, thinking will be more open, choice will be more.

Last words

Therefore, the industry is too involved. What about the second half of the year?

When we want to break a line and start a business, we will never "retreat" to an industry, but "enter" an industry.

Doing better than others is the only reason we decide to change.

It requires us to have unbiased self-perceptions, to keep thinking about things that are 10x good, and to understand scarcity and scarcity flows.

Then make a courageous choice.

In the second half of the year, we may not be in a state of life at a 45-degree angle. We want to roll and lie flat.

A better state should be constant sit-ups. Serious efforts, serious rest.

A lot of things, afraid of a serious.

A little more serious.

Information source: Enterprise management