357 My Son and My Son
The power of management has played a huge role in the competition between the two main competitors, Xundian Express and Jieyin Express, and Xundian Express is even better.
In the fiercest competition between the two companies, not only the O2O company defected, but also other express delivery companies also invested in the future overlord, Xundian Express. The co-delivery business had a huge influence.
The so-called co-delivery business is to break the boundaries of express delivery companies and share transshipment centers, vehicles, outlets and couriers with competitors. This is similar to the express delivery alliance established by Qi Nian in Chi County. This time Qi Nian has achieved rapid success
With the support of the Dian Express headquarters, Rencheng City was turned into a pilot area according to Qi Nian's suggestions, and the resources of Xundian Express were opened up to peers, and at the same time, relevant resources of peers could be shared.
Qi Nian first cooperated with smaller express companies. Because these express companies have limited advantageous resources, they have been surviving in the cracks of giants such as Xundian Express and Jieyin Express. Qi Nian opened his resources to them, which is equivalent to
It gave them a way to survive, and the difficult situation they had been struggling to support turned into a profitable state. Under this incentive, other express delivery companies also joined in and formed an alliance.
After Xundian Express cooperated with the O2O company, Qi Nian shared the resources of the O2O company for this new express alliance to use, allowing the alliance to exert an effect of 1+1 greater than 2. Under the influence of this naturally formed alliance
, Jieyin Express was vulnerable. This is actually the same as the express alliance in Chi County, because the alliance has a cost advantage, which makes the price war increasingly tilted towards the alliance. It only took three months for Jieyin Express to be transformed from
Profit turns into loss.
This is a dangerous state. Market share is eroded by alliances every day. In the worst case, Jieyin Express's market share fell to third place, accounting for only about 15%.
Just when Jieyin Express was in a state of anxiety, it unexpectedly received an olive branch from Qi Nian, asking Jieyin to join their alliance.
At first, there were different opinions within Jieyin Express. Some people wanted to make a last-ditch effort, but obviously the situation was like the overlord Xiang Yu trapped in Gaixia. He was ambushed on all sides and besieged on all sides. The situation had not improved at all, so he had to give up in the end.
Resist, agree to join the alliance.
Since joining the alliance, Jieyin Express's original advantages have been fully exerted. Jieyin Express's network coverage rate is relatively high, so it has a natural cost advantage over other express companies except Xundian. It is fair within the alliance
The competition was like a duck to water, and the market share quickly returned to the second place.
After solving the competition problem within the industry, Qi Nian wants to solve the competition problem outside the industry. Due to the dual pressure of e-commerce and O2O on express delivery companies, the revenue of express delivery companies is decreasing year by year while costs are rising year by year. From the headquarters
Franchisees all feel that their lives are not as comfortable as before.
Although the headquarters sees that this is an inevitable trend in industry development. An emerging industry with relatively high profit margins will inevitably face the problem of lower profit margins and reshuffling in the process of development. To solve this problem, we must start from business model innovation and industry self-development.
Improvement should be made in two aspects.
However, Xundian Express is now one of the largest express delivery companies in the country, with billions of business volume and tens of billions of business revenue every year. If you want to make revolutionary changes, firstly, you don’t have the will, and secondly, you are worried that it will affect the whole body.
affecting the fundamentals.
"But if this continues, isn't it equivalent to..." Qi Nian didn't say anything.
"It's equivalent to waiting for death, right?" Shi Shi from the Strategy Department added with a smile for Qinian.
Qi Nian nodded.
"Change may be seeking death, and remaining unchanged may be waiting for death. Both are deaths, but the former dies quickly and the latter dies slowly. If you were in our role, what suggestions would you give to the company?
?”
"I understand your difficulties. It's difficult for both. The company is in a leading position in the industry. Logically speaking, it should be the first to make changes in the industry. However, when making changes, there is no willingness to change. It is also worried that if something goes wrong, the industry will not be affected.
The status has been lost. Therefore, it is better to take a step slowly and let other companies try and make mistakes. Once the direction and effect of the change are clear, all resources will be invested. This is the safest way."
Colleagues from the strategy department nodded: "Qi Nian has ideas, that's good. Just like the express alliance and co-delivery you did in Chi County and Ren City. You can use your resources to try it, but the headquarters level will not
There will be clear suggestions and actions soon.”
The discussion with colleagues at the headquarters was the outcome that Qi Nian expected.
Always having an enterprising spirit, he decided to try in two steps. The first was to use part of the profits of the city company to subsidize the county companies and outlets below. He would do what the headquarters should do. But this is not the norm after all, and the city company
Shareholders also questioned such a proposal.
The second step is the main direction of Qi Nian. He decided to take this work one step further and implement cross-shareholding within Renshi City.
Cross-shareholding actually has pros and cons.
The advantage is that the interests of all related companies, whether they are city companies, county companies, outlets, or couriers, can be integrated together.
The downside is that the crisis of one outlet may affect the interests of everyone. As the saying goes, everyone will prosper, and everyone will suffer.
However, in Qi Nian's opinion, the advantages of doing so far outweigh the disadvantages, because even if other people's companies cannot temporarily affect him, if a city-level company is implicated, no one can survive. This is a matter of short-term interests and
A battle between long-term interests.
At the marketing company's monthly business analysis meeting, Qi Nian proposed this idea for everyone to discuss.
As expected by Qi Nian, there are those who agree and those who oppose. Those with poor operating performance of the company certainly agree and hope that they can get a piece of the pie from other companies. Naturally, those with good operating performance are opposed. I have done a good job.
Why do you want to get involved with others?
After two hours of discussion, there were huge differences.
However, Qi Nian doesn't care about everyone's differences. Because such differences have long been expected, he has no intention of including all companies in this framework. If you are willing, let's discuss how to do it. Let's do it step by step.
In the next month, Qi Nian discussed the details of shareholding with several companies that were willing to participate in each other's shares. The responsibilities and rights were relatively simple, and the most difficult issue was the company's valuation.
A loss-making outlet may have a market assessment price of 500,000 yuan, but the outlet owner thinks it is worth 2 million yuan. This situation is most likely because the owner of this outlet purchased it for 2 million yuan back then.
In order to form a valuation standard, Qi Nian set publicly available data such as business volume and service quality as parameters and built a simple mathematical model.
This mathematical model may not truly reflect a company's market valuation, but it can at least reflect a company's business volume and business income. Among peers, everyone will be at a disadvantage to each other. Under this reference standard
, various companies basically agree with this valuation standard that is both copycat and fair.
The first step was for the city company and the county company to participate in each other's shares. Initially, three companies participated, with the city company each holding 20% of the shares.
Chapter completed!