What Is Strategic Healthcare Planning?

The 3C strategic triangle model was proposed by Kenichi Ohmae, the leader of Japanese strategic research. He emphasized that there are three key factors for successful strategy. These three factors must be considered when formulating any business strategy.

3C Strategic Triangle Model

3C's Strategic Triangle Model

1. The company itself.

2. Customer.

3. Competition.

Only when companies, customers and competitors are integrated in the same strategy, sustainable competitive advantages are possible.

The company strategy aims to maximize the competitive advantage of the company, especially in the functional areas that are closely related to the success of the company:

Selective and programmatic. It is not necessary for an enterprise to occupy a leading position in each functional area. An enterprise must be able to obtain a decisive advantage in a certain core function. Then, even if its other functional areas are mediocre, it will eventually be enhanced by this core functional advantage.

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Daishinkenichi maintains that a company's competitor strategy can be achieved by finding effective methods and pursuing differentiation in functional areas such as procurement, design, manufacturing, sales, and service. The specific ideas are as follows:

Differentiation of brand image. Sony and Honda sell much more than their competitors because they invest more in public relations and advertising. Moreover, their advertising campaigns are organized more carefully and carefully than their competitors. When product functions and distribution models converge, brand image may be the only source of differentiation. However, the misfortune of the Swiss watch industry also reveals the danger of brand image. Therefore, long-term effective monitoring of brand image must be carried out.

Differentiate profit and cost structures. First, the pursuit of the maximum possible profit from the sale of new products and additional services. Secondly, make an article on the allocation ratio of fixed costs to variable costs. When the market is down, companies with lower fixed costs can easily lower their prices. As a result, the company can easily increase its market share through a low price strategy. This strategy is very lethal to those companies with higher fixed costs. When the market price is too low, they are often unable to move.

Lightweight boxing tactics. If the company intends to advertise in the media or increase research and development efforts, a large part of the company's revenue will be spent on these additional fixed costs. SMEs and market giants are fighting in such areas, and the victory is self-evident. However, companies can base their market incentive plans on a gradual proportion rather than an absolute value. Such a variable incentive plan can also guarantee distributors to increase sales of enterprise products in order to obtain additional returns. Obviously, it is impossible for Big Three Market Players to provide such additional returns to their dealers, so their profits will soon be eroded by small and medium-sized companies.

Hito-Kane-Mono. Hito-Kane-Mono is the three words that Japanese planners talk about, namely people, money, and things (fixed assets). They believe that streamlined corporate management can only be achieved when the three are balanced and there is no redundancy or waste. For example, it is a waste that the cash stock exceeds the manager's funding requirements. Conversely, if there are too many managers and insufficient funds at their disposal, it is also a waste. The resulting waste also includes financial managers having to spend precious time on how to allocate limited funds. Of these three resources, people, wealth and material, funds should be allocated last. The company should first configure the "people" (management-type talent resources) according to the existing "things" (factory workshop, machinery and equipment, technical processes, business processes and functional strengths). Once the "human" creativity has been developed and a visionary business idea has emerged, the "things" and "finance" should be allocated to these specific business ideas and production projects as required.

Looking at Li Ning's rebranding from the 3C strategy

The competition in the sporting goods industry has intensified. The role of brands in competition has become more prominent. Li Ning started from a small company that relied on gymnastic prince Li Ning in the late 1990s and encountered development bottlenecks: performance growth slowed down in some years and even negative growth. To this end, from 2000, Li Ning Company began a series of actions to adjust the strategy and reshape the brand. So Li Ning was able to have: a leader in China's sporting goods industry.

What are the successes and shortcomings of Li Ning's rebranding strategy? What issues should be noticed in the future? Based on the 3c strategy model proposed by Japanese strategy master Kenichi Ichie, we made a comprehensive analysis of Li Ning before implementing the brand remodeling strategy. Put forward the rational thinking of Li Ning's brand remodeling strategy, and compare it with Li Ning's actual brand remodeling strategy. The purpose is to summarize the company's gains and losses in the process of brand remodeling. Business reference.

I. 3C strategic triangle model

The 3c strategic triangle model (Figure 1) proposed by the Japanese strategy master Kenichi Omae believes that a successful strategy has at least three key elements: the company itself, the company's customer, and the competition. By integrating with competitors in the same strategy, sustainable competitive advantages can better exist. Therefore, when formulating a strategy, enterprises should make full use of their comparative competitive advantages to better meet customer needs and strive to form absolute differentiation from competitors. For the key factor one, the enterprise, strive to increase the competitive advantage of the company, especially in the functional areas that are closely related to the success of the company. For the key factor, the customer, it is the foundation of all strategies. The company's primary consideration should be the interests of customers rather than shareholders or other groups. Failure to match customer needs with company needs will jeopardize the company's long-term survival. There is also a third key factor to consider-competitors. If competitors cannot better match the relationship between the company and the customer, the company will also be at a disadvantage. In short, the company's competitive advantage can be achieved through differentiation in procurement design, manufacturing sales and service. A good strategy must match the relationship between the company itself, its customers, and its competitors, and dynamically grasp their evolutionary trends. Only then will companies have the opportunity to win this war of interest.

2. The status of the three elements of Li Ning's strategy before implementing the rebranding strategy

After five years of establishment, Li Ning Company quickly established itself as the No. 1 brand in China's domestic sportswear market share for the seventh consecutive year, but experienced a bottleneck after experiencing rapid brand expansion in the 1990s. From the Asian financial crisis in 1997 to 2000, the company has not been able to break the growth ceiling. Sales revenue has dropped from 6.7 billion yuan in 1996 to 5.2 billion yuan in 1997. The reasons for this decline have been as follows.

Business itself

Li Ning's own problems are:

1. Unclear brand positioning. For a long time, the company mainly adopts the follow-up strategy of following foreign leading brands. Product positioning and advertising themes require constant changes in brands and the market lacks strategic thinking. Li Ning's brand positioning also fluctuates between "sports" and "leisure";

2. The brand lacks cultural attributes. When operating a brand, Li Ning Company ignored the creation of a brand culture and did not form a unique brand culture;

3. Brand personality is not clear. In the consumer's heart B, the personality of the Li Ning brand is always linked to the image of the gymnastic prince, Che Ning, that is, "affinity, national, sports, honor". Not the "youth, passion, fashion" brand personality that the company strives to build;

4. Product quality needs to be improved.

Li Ning's products have relatively weak sports attributes, lagging behind rivals Nike and Adidas in terms of technological content, innovation and improving sports performance, and have become the number one reason consumers do not like Li Ning's products.

However, Li Ning also has its own main advantages: 1. High brand recognition. After more than ten years of development, Li Ning has a high reputation and loyalty and has a cognitive advantage in the minds of consumers. 2. The company's public relations year-on-year depended on Li Ning's personal influence and the company's accumulated strength over the past ten years. Li Ning has established a very wide public relations resource. 3. Distribution network perfection Li Ning Company has the largest sales network in China.

Company customers

Misplaced target customers. The company's target customers are students aged between 14 and 28, large and medium-sized cities, sports-loving, advocating trendy fashion and international fashion trends, but the actual consumers are 18 years old Between 45 and 45, living in secondary cities, middle-income, and not heavy consumers of sporting goods.

New progress passenger transport is gradually decreasing. The loyal consumers of Li Ning brand are mostly admirers of Li Ning for the new generation of young people. "Li Ning" gradually loses its appeal and they should be the company's target consumers.

Customer demand has changed dramatically. With the improvement of living standards, people's spending power has increased substantially. The demand for functional professionalization and personalization of sporting goods has become stronger.

Competitors

International brands in the high-end market have entered China one after another. Nike and Adidas are in absolute leadership in the sporting goods industry. Their brand influence, product functionality and fashion, sports resources, product image, and marketing are better than being in a challenger position. Li Ning company. However, because they still use the European and American well-known markets in China, they have affected their development in China. In addition, Nike and Adidas are expensive, and the market is mainly distributed in the developed areas in the east while the development is slow in the less developed areas in the middle and west.

The mid-to-low-end market, led by Anta's Jinjiang Sports Goods Corps, has broken the Li Ning brand's unique position among Chinese sports goods national brands. Although Li Ning is still in the leading position of a national brand of sporting goods, with stronger brand influence and recognition, higher product quality and technology capacity, these local brands have attracted a lot of consumers with lower prices , Already has a large market share in the tertiary market.

In short, competitors in the high-end market are becoming increasingly powerful. More and more new entrants in the low-end market have noticeable changes in customer demand, and the inherent problems of Li Ning Company have brought the company's development into an unprecedented crisis. It is urgent to investigate brand strategy and implement rebranding projects.

Third, rational thinking of Li Ning's brand remodeling strategy based on the 3C strategy triangle team

Brand remodeling, also known as brand reengineering, refers to the process of re-investigating, re-evaluating and re-positioning the brand from the height of the brand strategy on the basis of the existing brand. Through brand innovation, the brand's lasting competitiveness is finally acquired. Rebranding is an inevitable choice for companies to adapt to major environmental changes and seek, maintain and enhance their competitiveness in the changes.

Famous brand asset management master KevinKeller believes that in order to reshape a brand, many changes are often required, such as changing brand elements, repositioning the brand, and establishing more convincing differences-that is, creating a brand identity to make the brand more modern. Trends are more in line with the psychology of modern users, or have the personality of modern brands. Enter new markets, win new customers, and complement them with new marketing programs to improve the reputation and uniqueness of the strength of the brand association.

Due to the dislocation of target customers and the competitive situation has changed dramatically, Li Ning must reposition its brand and target market. Among the main consumers of sports goods, consumers account for about half of the 15-25 age group, and they are also the main constituents of non-loyal users and potential users of the Li Ning brand. By. However, the young consumers' preference for Li Ning brand is still lower than other brands. The main reason they choose Xiaoning brand. 15-25 years old consumer voices like a novel, lifestyle full of change and challenge. I want to make a difference by buying something unique. On the other hand, most consumers' demands for engaging in sports activities want to experience the feeling of success through sports and highlight themselves.

And become the focus of everyone's purpose. And consumers are paying more attention to the professionalism of sports products. Especially hanging young consumers. Product technology is significantly more important than older consumers.

Must pay attention to brand culture and shape brand personality.

Improve brand image across the board. Major competitors Nike and Adidas have their own unique brand culture. And brand culture is particularly important in brand building.

As the first domestic sportswear brand in China, the economic globalization of the Li Ning brand is internationalized. It can not only establish the international shape of the Li Ning brand, but also seek space for development in the international market in the relatively weak international markets such as Nike and other world-renowned brands. .

Leverage channel advantages and increase investment in technology. Extending the brand to the high-end through the mother-child brand approach not only enhances the added value of the brand, but also gains a share in the relatively weak domestic high-end markets of Nike and Adidas. Compared with other local companies, Li Ning has a technological advantage and leverages the country's largest channels to build an effective defense system against local brands such as Anta in the low-end market.

Fourth, Li Ning's actual rebranding strategy

Li Ning started rebranding in 2000. The period from 2000 to 2002 was the period of thinking and exploration. To this end, the company adjusted its management and introduced many professionals. Reorganized the organizational structure and set up a dedicated brand remodeling department. In 2002, with the intervention of IBM, Li Ning Company had a business advantage.

A systematic analysis of the industrial environment and the tactics of the company's history was successfully conducted. The company's development direction was quickly made clear by the end of the year. Li Ning Company officially established the company's mission, vision, values and business development strategy. Among them, the mission is "to inspire people's desire to break through with sports! Committed to the creation of professional sports goods, let sports change lives and pursue breakthroughs in a higher realm." The vision is "The world's leading sportswear brand company, in order to achieve internationalization of the company. The company needs to strengthen the company's international competitiveness in the Chinese market before 2008. By 2018, it will enter the top 5 of the sportswear world. The company's international market share accounts for the total More than 20% of business. Become a sports brand management company holding multiple brands to cover different customers and more than two mainstream sports in the market in a strong position. In 2003 the company officially implemented a product remodeling strategy. Since then, Li Ning company avoided Professional development stage. In order to achieve the above goals, Li Ning Company adopted a series of strategic measures.

For the Li Ning brand

Brand repositioning. In 2002, Li Ning established a new brand positioning: "professionalization, fashion, oriental characteristics and internationalization." Embarked on the road of professional development of sports goods. Qi Guang told Qiu to change to "Li Ning, everything is possible."

Increase product price and quality. Increase investment in research and development, carry out technological innovation, increase the technological content and functional value of the product, increase product prices, and push the product to the high end.

Changing the brand promotion model, the bullseye of Li Ning's special brand promotion has shifted from the original consumer to the national sports team. According to Nike's "pyramid-style" promotion ideas, Li Ning completely transformed his original "grassroots marketing". The company focuses its marketing efforts on specialized sports marketing. Promote the brand through title sponsorship of sports events, and gradually increase the number of top international sports events (to compete with Adidas for the 2008 Beijing Olympics ToP sponsors, and ultimately lose) and foreign sports teams (sponsoring the African national teams participating in the 2008 Beijing Olympics) sponsor. At the same time increase cooperation with sports stars, especially NBA players.

Implement a multi-brand strategy. Li Ning has many brands such as "Li Ning", "Aigao" and "SHAO" and has also become the holding company of the famous table tennis brand "Double Happiness".

Brand internationalization. As early as 1999, Li Ning proposed brand internationalization. The brand internationalization has been raised to a strategic level, and a strategy of brand internationalization before market internationalization has been formulated to ultimately enhance the international image of Li Ning's brand.

For corporate customers

Segmented the market and re-targeted customers. Li Ning analyzed the characteristics of his own products and consumers. Adjust the target customer group to young people between the ages of 15 and 25. These consumers are more pursuing fashion and sports, and subdividing the age and gender of customers according to the functionality of the products to meet customer needs.

Hold firmly to the core customers. Li Ning identified college students as the core consumer group. Concentrate company resources and strive to become a volume sponsor of the Chinese college student movement.

Fight for high-end customers. In the second half of 2003, Li Ning officially entered the high-end sports professional market. It competed with Nike, Adidas and other international brand manufacturers for high-end customers.

Against competitors

Identify differentiated business areas. Since 2002, Li Ning has been manufacturing five types of sporting goods: running, basketball, tennis, football and fitness. In the Chinese market, positioning of running-related brands is still highly fragmented, and brand concentration is not high, which provides an opportunity for Li Ning. Running was identified by Li Ning as an important area of differentiated business development.

Implement price segmentation. The price of Li Ning's products is 30% to 40% lower than internationally renowned brands. But it is 50% higher than Chetu brand such as Anta and Shuangxing. In the high-end market, we will step up technological innovation and technological innovation. Compared with similar products of the world's top brands, we will seize market share through price advantages to create "people have our own advantages." In the low-end market, the domestic brands' product quality and technology are inferior to Li Ning's brand but the price is relatively low. Li Ning Company uses its Leopard advantages in quality and technology to provide more cost-effective products to create "people have me."

Leverage the advantages of distribution gathering. Li Ning's distribution network maintains the status quo in Tier 1 cities. For Nike and Adidas, which are relatively weak in Tier 2 and Tier 3 cities, the company has optimized resources to accelerate the development of new large concessions while ensuring the continued operation of the original stores Franchise stores, with better distribution channels than competitors to achieve the synchronous development of Li Ning company in major cities in China.

V. Gains and Losses of Li Ning's Brand Re-strategy

Through the implementation of the brand restructuring strategy, Li Ning has become an absolute leader in local brands. An influential professional sporting goods company in the international market. Sales and profits have also maintained rapid growth. Consumers' preferences for brands have clearly increased, and brand image and brand value have been greatly improved. The clear development direction of professional strategy, clear brand positioning, and professional sports marketing during the rebranding process are the success of Li Ning's re-entering the rapid development channel.

(1) But Li Ning also has hidden dangers in rebranding:

1. The professional area of the brand has not yet been formed. Probably because the brand remodeling strategy has not been implemented for a long time, the Li Ning brand has not yet formed core characteristics such as Nike and basketball, Adidas and football. Therefore, Li Ning can only become a supplement for the big international brands.

2. Brand culture is not strong enough. Li Ning's brand features are not clear. One of the important reasons is that Li Ning's investment in brand culture needs to be increased. Because when there is no technical "bottleneck" in product quality, brand culture will be the key to determining the outcome of the competition.

3. The brand internationalization strategy is too fast and too heavy. Li Ning Company is dedicated to becoming an international brand and to internationalize the brand. It tries to stimulate the domestic market through brand internationalization. However, we must pay attention to two points here: firstly, the internationalization process of Chinese companies is generally disappointed due to lack of experience; secondly, due to limited responsibilities, excessively fast and heavy internationalization will disperse the energy and resources of the company, and in the end may not be worth the money. An undeniable fact is that Li Ning has been surpassed by international brands in China's high-end market.

(2) For this reason, Li Ning's future development should pay attention to:

1. Increase investment in technological innovation and enhance the added value of the Li Ning brand. There is still a big gap between Li Ning's technology innovation and international brands, which also limits the overall value of Li Ning's brand.

2. Create brand culture and improve brand cultural attributes. When the brand rises to the level of cultural attributes, the brand value can be truly enhanced, and the core competitiveness of the enterprise can be more durable.

3. Consolidate the car soil market and open up the inter-market. While Li Ning is pursuing internationalization, it should not weaken its focus on the domestic market and invest in it. Only when the local market is stable can internationalization be backed.