Reasons: 1. The current market has not reached saturation; 2. Users’ usage rate of the product can be significantly increased.

Reasons: 1. Existing markets and market segments are saturated; 2. Combined with product improvements; 3. It is difficult to develop new products

Reasons: 1. Make full use of understanding of the market 2. Maintain a leading position relative to competitors 3. Find new opportunities from the shortcomings of the existing product portfolio 4. Maintain a solid position in the existing market

Advantages: Utilize existing product knowledge, manufacturing capabilities, marketing channels, and marketing skills to obtain synergistic effects. Applicable: Have strong competitive advantages in the current industry, but the growth or attractiveness of the industry is gradually declining.

Advantages: Financially consider balancing cash flow or obtaining new profit growth points to avoid industry development risks. Applicable: When the current industry is unattractive and the company does not have strong capabilities and skills to switch to related products or markets.

1 The need for strategic reorganization of large enterprises (to raise money and improve) 2 The short-term behavior of small businesses (the goal has been achieved, no more risks)

1. External reasons (general environment) 2. Internal reasons: the enterprise or one of its businesses loses its competitive advantage (unsmooth mechanism, poor decision-making, poor management)

1. Mechanism change 2. Finance and financial strategy 3. Cost reduction strategy

1. Reposition or adjust existing products and services 2. Adjust "marketing strategy" (promote new measures in price, advertising, channels, etc.)

Transfer, sell, cease operations

Government opposition and dissuasion

1. Horizontal mergers and acquisitions 2. Vertical mergers and acquisitions 3. Diversified mergers and acquisitions

1. Friendly mergers and acquisitions 2. Hostile mergers and acquisitions

1Industrial capital mergers and acquisitions 2.Financial capital mergers and acquisitions

1. Leveraged M&A 2. Non-levered M&A

Unified deployment of the same resources; complementary sharing of advantages; internal transfer to digest innovation

Failure to do due diligence; overestimating potential

Strategy, organization, system, business, culture

functional protocol

Advantages: Flexibility Disadvantages: Poor control over allies, loose control, insufficient communication, low efficiency

Joint venture

Mutual shareholding investment

Advantages: Helps expand financial strength, enhance trust and sense of responsibility Disadvantages: Poor flexibility

1. Strictly define the goals of the alliance 2. Carefully design the alliance structure 3. Accurately evaluate the assets invested 4. Specify liability for breach of contract and dissolution terms

1. The price elasticity of the product is high, and a large number of users are price-sensitive. 2. It is difficult to differentiate the product. 3. Buyers pay little attention to the brand. 4. Price competition is the main means of market competition, and the switching cost of consumers is low.

1. Choose an appropriate transaction organization form (outsourcing/in-house production) 2. In industries with significant economies of scale, equip corresponding production facilities to achieve economies of scale 3. Improve productivity 4. Improve the utilization of production capacity 5. Improve product processes Design (reduce functions to reduce costs) 6. Reduce costs of various elements 7. Focus on concentration

1. Changes in technology may wipe out the investment and accumulated experience used to reduce costs in the past (cost perspective) 2. New entrants to the industry can achieve lower costs by imitating or investing in higher-tech facilities (competitor perspective) ) 3. Market demand changes from focusing on price to focusing on brand image, turning advantages into disadvantages (consumer perspective)

1. Products can be fully differentiated and recognized by customers 2. Customer needs are diversified 3. The industry in which the company operates is undergoing rapid technological changes, and innovation has become the focus of competition.

Capabilities: R&D, design capabilities, marketing capabilities, improving quality, establishing image, maintaining technology and building channels; System: There is a system to encourage creativity, a management system, and an innovation culture

1. The cost of forming differentiation is high (cost perspective) 2. Rival models reduce or shift differentiation (competitor perspective) 3. Changes in market demand (consumer perspective)

1. There are differences in demand among buyer groups 2. The target market is attractive 3. In the target market, there is no other competition using similar strategies 4. The company has limited resources and capabilities, making it difficult to achieve cost leadership or differentiation, and can only select a few Market segments.

1. Narrow target market (market perspective) 2. Entry and competition of competitors (competitor perspective) 3. Smaller demand differences among buyer groups (consumer perspective)

Low price and low value (focusing on price-sensitive market segments) “viable”

low value

high value

high price high value