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Why Paradise rapid expansion of its own collapse sold themselves to their - Wing-lok, home appliance

By: HotBoy

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Suning, Gome and Yongle was once the Big Three Chinese home appliance chain, but the Wing-lok, sold themselves to the country the United States, was "Evening" has become "song and dance duet." This wave is not flat, Huang Guangyu of GOME CEOs spread news, with Suning "decisive battle", has caused sharp falls in share prices Suning, but the situation will stabilize soon, and Wong Kwong Yu may not think he would smile too early.
Paradise failure
little suspense, in fact, itself caused the collapse of its own rapid expansion. Alleged, in addition to Shanghai headquarters will profit, other areas could hardly profitable, Chen Xiao camp eager to break into the first home appliance chain, but could not keep up the performance, blowing soap bubbles big enough, but will one day be broken, only But a matter of time.

Chinese home appliance chain out of a distinctive way, has become a model of marketing history, can be expected, Suning and the National America in quite some time have their own competitive advantages. Today's commodity circulation patterns have changed radically, the original department store has been replaced by supermarkets, some of the professional wholesale market has been replaced by supermarkets, such as home appliances, medicine and building materials, of course, more traditional wholesale market is still dynamic, such as Commodity markets, clothing market.

Paradise would like to grow up fast, is good, but strategically. Paradise has opened a shop in Guangzhou Dongfeng Road, This is good at calculating the businessman, has made a big mistake. Dongfeng Road, Guangzhou city as a transportation channel, along the few large retail outlets, department stores are due before the East Jun flow is not enough to close down early on, and now they dare to Paradise this "commercial Dead Man Walking," to make a fuss, who over the weekend will be Dongfeng Road shopping to do? Wing-lok, courage, but the results can be imagined.

Many experts believe that failure is rooted in the Yongle and foreign investors gamble. But this may just be one of the factors accelerating the failure of Paradise.

Performance reports from the Yongle see Yongle not reach terms with foreign capital on gambling, in order to be free from forced Songgu had to bite himself sold, there is life, there is hope. This is actually the Wing-lok, foreign investment, countries the United States three are willing to see the results, even Suning hope so. Because people know Sun, Yongle might already be "hollowing out" of the melon, so swallow Gome, the country might be carried out even the U.S. indigestion.

International home appliance chain giants like Best Buy and Suning, Gome contest, it may take some time to adjust to the situation in China, Wal-Mart to learn for so long, has not yet graduated, its difficult to imagine. Yongle's misstep can be attributed to these points: First of all, deliberately imitated, nothing special, Suning and the National brilliant idea of beauty when the gimmick is cheap electrical appliances, such as a dollar in the washing machine, the results were excluded from breaking threshold. Play until the Yongle, consumers have already reduced to zero passion, then such a practice very poor results; Secondly, expansion of marketing network errors, Wing-lok also basically a small city surrounded by big cities, which the United States with Suning and national routes as another. Example, such a potential market of Zhuzhou, Yongle simply no thought of; third, overestimated their own strength, although the hat and no cattle, performance is also impractical to do them, but their business operations with a serious gambling deviated from the principle of prudent management, anything of unbeaten truth.

How to fight giant? How to grow giant squeeze? This is perhaps the majority of the fundamental issues facing small and medium enterprises, can not do business if we can not talk and people to "fight" sound business requirements, sales and smooth, assured funding. If possible, consider a bigger and stronger, but also should be bigger and stronger on the front of enterprises does not allow for luck.
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