How do enterprises survive and develop in the competition?

"The principle of competition is the same. Whether a company is strong or not depends not on its size or assets, but on its sustainable profitability. This is exactly the problem faced by many domestic enterprises. " -Investment Zhang Landing. Since the new century, China enterprises have become the focus of the world's attention at an unprecedented sustained growth rate. At present, China has become the manufacturing center of many commodities in the world, and there is no doubt that it will make a difference in more fields in the future. When we pay attention to those successful enterprises, we often ignore other failed enterprises, although the number of failed enterprises has aroused our vigilance. Many failures can be avoided if the company is willing to introduce modern management science and processes. How do enterprises succeed in the competition? Every enterprise has a different answer. Some enterprises believe that success is due to focusing on core business; Some enterprises believe that success is to create a unique and distinctive business model; Some enterprises believe that the reason for success is that entrepreneurs are extremely diligent. Successful enterprises have their own reasons for success, while unsuccessful enterprises have only one reason and cannot adapt to the increasingly fierce market competition. What is the essence of competition: survival of the fittest. The essence of competition is the competition between qualification elements and advantage elements. Specifically, the qualification factor is the threshold for enterprises to enter the market, and the advantage factor is the ability of enterprises to obtain orders. Therefore, competition will eventually force enterprises to take action. On the one hand, as soon as possible to weaken the advantages of competitors, so that it becomes a qualification factor; On the other hand, we should constantly improve and innovate, create our own advantages, so that competitors can't surpass them in the short term. As a result of competition, the advantages brought by enterprises through various improvements and innovations are constantly transformed into qualification elements. If an enterprise can't obtain these qualification factors, it will start with a loss until it is eliminated. Competition has finally changed the pattern of the industry, which is mainly reflected in the following aspects: First, the leading elements will be quickly transformed into qualification elements. Fierce competition is often carried out between enterprises with minimal product differences. Because of the promotion of competition, the qualification factors of the industry are getting higher and higher, and it is difficult for new enterprises to enter their fields. However, some enterprises in the original industry can no longer meet the increasing qualification factors. At this time, the reshuffle of the industry began, and the problem faced by enterprises was to gradually reduce profits, losses and quit. Secondly, it is difficult for enterprises to extend the retention time of leading factors. Fierce competition and strong competitors will keep this advantage to a minimum. Objectively speaking, any dominant factor will eventually be transformed into a qualification factor, but there are still many ways for enterprises to prolong the time of maintaining the dominant factor, such as maintaining the dominant factor through patents or gradually introducing the dominant factor to prevent competitors from surpassing it at one time. Prolonging the holding time of leading factors is also an effective way to reduce costs. Finally, enterprises should constantly innovate. In the process of competition, the advantages brought by various innovations are phased and effective only when competitors have not yet obtained them. It is precisely because of this that enterprises are forced to constantly improve and innovate, whether it is strategic innovation, business model innovation, technological innovation or operational innovation. Only innovation can constantly create advantages, stay ahead of competitors, and truly ensure the sustainable profitability of enterprises. Shanghai Shia Investment Management Co., Ltd. This company is an innovative equity investment company, specializing in industrial investment and enterprise asset operation and management, with excellent asset operation and management capabilities, committed to the efficient operation of capital and high return on investment, and the resulting corporate strategy formulation and implementation. We have always attached great importance to extensive cooperation with the government, financial institutions and local enterprises. In the whole process of asset operation and management, Xiya Company takes partners as the carrier, and around the concept of creating long-term value for partners, it provides innovative, personalized and customized smart services for partners, tailors solutions and asset operation implementation for partners, ensures that partners can obtain long-term stable benefits and significant competitive advantages, and share high capital gains and development opportunities brought about by vigorous economic development. Based on the success of many partners and the professionalism and strength of the team, Xiya Company has successfully provided asset operation management and turned losses into profits for many enterprises, and has a good reputation.