Creative destruction

Author: Dong Fangming, Editor-in-Chief
Publisher:
Publish Date: 2002-03-01
Features: The New Road to the Market will analyze this new model. Against the backdrop of China's recent entry into the WTO, domestic automakers have launched a fierce price war at the beginning of this year. Undoubtedly, China is the most promising automotive consumer market in the future, but price is not the only factor in winning the market. The article Accelerating Automotive Brand Building in this issue analyzes consumer purchasing psychology and the importance of brand building for automakers through extensive comparative data. It is believed that this article will provide valuable insights for Chinese automakers.
Increasingly, companies are inclined to outsource cumbersome peripheral businesses to specialized firms. Playing the role of a gear on someone else's wheel may seem dull, but it can be profitable. The article The Other Side of Outsourcing analyzes the winning strategies of service providers from the perspective of the scale and scope of services they offer to clients. The article argues that when suppliers capture value that clients cannot, they will succeed.
In China, the accelerating marketization process and the challenges brought by joining the WTO have increased the urgency of breaking monopolies in industries such as telecommunications. McKinsey, through research on other countries' experiences, found that once protected policies are lost, monopolistic enterprises inevitably lose some customers. To prevent new competitors from emerging, company managers often resort to price wars, hoping to defeat attackers through competitive pricing. The article Racing Towards the Abyss reminds these managers: incorrect pricing strategies can destroy company value faster than operational failures.
This issue also includes two articles on high-tech company strategies: Chip Technology Opens Up New Horizons and Portals for All Platforms. The article Electricity: Calculated in Minutes focuses on pricing strategies in the energy sector.