Every enterprise has its own set of dependent business systems, which is the value network of the enterprise in business terms. The success of an enterprise lies in its adaptability to the value network. The more it can adapt to this value network, the more comfortable it is and the better its profitability. But when the new market starts to subvert the old market, like path dependence, everything you need is attached to this network, specifically, the actions of suppliers and customers on this network. All your play is for these services. Entering a new market, you still do it with the old logic, then even if you do everything right, you will eventually fail. This is the boundary of a value network failure.
Disruptive innovations often come phone number list from outside a company's value web, which is a whole new value web with new customers, new products, and new suppliers. A typical example is that Lenovo made mobile phones, and IBM's minicomputers entered in large numbers, and finally returned. Growth is an inevitable dilemma In the past, Google seemed to have a question "What is the most beautiful mathematical formula?" I don't know what the most beautiful mathematical formula is, but the most beautiful curve, I think, can only be growth. Is there a more captivating curve in the world than growth? For a business, growth is the lifeblood of profit and market capitalization. all in growth.
On the one hand, the best way for an enterprise to achieve growth is to serve its current customers and become its current suppliers. When the customer service says "NO", the company will also say "NO". On the other hand, businesses need to grow. A good leader will certainly not make the company spend a lot of energy into a market with smaller profit margins and an unclear market outlook. Robin Li once said: "If the market is less than 1 billion, Baidu will not look at it." This is the truth. With Baidu's personnel salary level and market value, it is difficult to say that there is any reason to drive Baidu to enter a small market. Even if a company finds products outside its own value network and occupies the highest end, it often fails. Why? The reason is growth.