Application of the Art of War

Author: Chen Zhiping, Yan Lingyuan
Publisher:
Publish Date: 2006-06-01
Features:
2.4 Zong Qinghou Founded Wahaha Group
Zong Qinghou was originally a staff member at the Xiangcheng Primary School-run factory in Shangcheng District, Hangzhou City, Zhejiang Province. In 1987, the education bureau formed a sales department and needed a manager. Since the department had no money, yet required a profit of 40,000 yuan that year, no one was willing to take the job. The bureau leaders had no choice but to "force a match"—"Lao Zong, why don't you take the job?" Zong Qinghou stood up, "Alright, I'll do it! I guarantee we'll make a profit of 100,000 yuan this year." From that day forward, Zong Qinghou became the manager, while also working as a tricycle driver, a loader, and a salesperson. That year, he contributed 200,000 yuan. With the money, Zong's confidence grew, and he decided to start a business. He invested 200,000 yuan to build a nutritional liquid filling plant. After the factory was set up, Zong finally remembered to conduct market research, only to be shocked: there were already 38 types of nutritional liquids on the Chinese market! The "warlords" had already fought fiercely. Zong's heart sank. In October 1988, Zong Qinghou saw a news article in the Hangzhou Daily: "The president of the China Student Nutrition Promotion Society, the renowned nutritionist Yu Ruomu, revealed at a recent symposium that one-third of the 500 million children and primary school students in China suffer from malnutrition. In Zhejiang Province alone, 47% of children aged 8 to 12 are malnourished."