What Is Synergism?

Synergy refers to the effect of various joint efforts that enterprises can seek from the decision of resource allocation and business scope, that is, the effect of "1 + 1> 2".

[xié tóng zuò yòng]

Synergy refers to the various joint efforts that enterprises can seek from the decision of resource allocation and business scope.

1. Interactions where various dispersive effects make the total effect better than the sum of the individual effects in the combination. 2. The synergistic effect of two or more (drugs), which is more effective than a single drug.

In general, synergy can be divided into the following four categories.

Synergy investment synergy

This synergy comes from activities such as the joint use of enterprise equipment, common raw material reserves, joint research and development of new products, and the sharing of enterprise-specific tools and proprietary technologies. For example, McDonald's Real Estate Business Department leased stores to franchise business owners to engage in fast food business. On the one hand, it supported the development of chain fast food business, and on the other hand, it obtained higher-than-average rental income.

Synergy

This synergy results from activities that make full use of existing people and equipment and share the advantages formed by the experience curve. For example, Kelon Company uses its refrigeration personnel, equipment and technology to produce refrigerators and air conditioners at the same time.

Synergy management synergy

Management capability is an important capability that successful companies generally possess. Modern management theory believes that management capabilities are available for many businesses. Therefore, enterprises can make full use of their management capabilities to manage several businesses at the same time, resulting in greater benefits than managing a single business. For example, when the business area of an enterprise is expanded to a new industry, if management encounters similar problems that have been dealt with before, the management personnel of the enterprise can use the management experience accumulated in the original industry to effectively guide and solve these problems.

Synergy sales synergy

This synergy arises from the use of common sales channels, sales agencies, and sales methods of the company's products, and also from the use of a common brand by the company. For example, Haier, which mainly produced refrigerators, has established a sales channel and brand influence, and many of its subsequent home appliance products continue to use the Haier brand and the same channels, which greatly reduces advertising promotion and channel construction expenses.

The above synergies occur in the business management activities of the enterprise. In fact, all stages of the business operations of the enterprise may produce synergy and achieve the effect of 1 + 1> 2. It should be noted that the value of the synergy can be positive or negative. For example, in the sales synergy, there was a beer production company that used a successful brand to sell its soy sauce. Another experience created by the process of one product will damage the image that a beer brand should have. Therefore, companies should avoid negative synergy when formulating the search for synergy.