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Cable enterprises can shift from opportunity-driven to strategy-driven development.
Cable enterprises can shift from opportunity-driven to strategy-driven development.
Release date:
2013-12-31
Source:
[Cable News Network] In recent years, China's rapidly growing economy has created an increasing number of opportunities domestically. Under these circumstances, more and more companies are adopting opportunity-driven approaches and opportunistic strategic models—some even entering the wire and cable sector yet, after five or ten years, still haven’t identified a clear core business or established their own unique competitive advantages. Shifting from an opportunity-oriented mindset to a strategy-driven one may well be the right choice for wire and cable enterprises. Bian Huaduo, Vice Chairman of the Capital Entrepreneurs Club, pointed out at the second China (Wuhu) Wire & Cable Expo and Product Quality Summit held in mid-December that the Third Plenary Session of the 18th Central Committee…
[China Cable Network] In recent years, China's rapidly growing economy has created an increasing number of opportunities domestically. Under these circumstances, more and more companies are adopting opportunity-driven approaches and opportunistic strategic models—some even entering the wire and cable sector yet failing to identify a clear core business or establish their unique competitive edge after five or ten years. Shifting from an opportunity-oriented mindset to a strategy-driven approach may well be the right choice for wire and cable enterprises.
Bian Huaduo, Vice Chairman of the Capital Entrepreneurs Club, pointed out at the 2nd China (Wuhu) Wire and Cable Expo & Product Quality Summit held in mid-December that, following the Third Plenary Session of the 18th Central Committee, the market has come to play a decisive role in resource allocation. He emphasized that wire and cable enterprises need to shift from being opportunity-driven to strategy-oriented, adopting a systematic development approach driven by talent, technology, and quality.
Huang Cheng, Chairman of Anhui Pacific Cable Group Co., Ltd., also agrees that cable enterprises should currently pursue development guided by strategic direction. He noted that since the company’s asset restructuring in May 2008, Pacific Cable has successfully integrated the Excellence Performance Model, during which senior leadership has effectively embraced and applied nine core principles—including strategic orientation, customer-driven approaches, and social responsibility—enabling the company to achieve rapid growth.
Jiangsu Shangshang Cable Group is also a company that has consistently adhered to a strategy-driven approach. Over the years, Shangshang has steadfastly pursued its development strategy of "Precision, Specialization, Uniqueness, and Internationalization," particularly excelling in the nuclear cable sector. Notably, the third-generation AP1000 in-containment cables independently developed by Shangshang have filled a global gap in the nuclear power industry. In response, Ding Shanhua, Chairman and General Manager of the group, emphasized that for Shangshang, strengthening the core business is more critical than simply expanding in size. He added that the company will continue to stay focused on its primary field, maintaining unwavering dedication, and aims to achieve a sales target of 15 billion yuan by the end of the 12th Five-Year Plan period.
Addressing the current reality where many domestic enterprises, including those in the wire and cable industry, remain firmly opportunity-driven, Zhang Wenkui, Deputy Director of the Enterprise Research Institute at the State Council Development Research Center, once pointed out that China is no longer the fertile ground for quick profits it was during the early days of reform and opening-up. He emphasized that today’s business environment demands a more strategic approach—companies must identify and seize truly transformative opportunities rather than blindly jumping at every chance that comes their way. While embracing opportunities can still yield rewards, he cautioned that an opportunity-oriented mindset—simply trying anything that seems promising—carries excessive risks and often outweighs potential benefits. At the same time, however, enterprises cannot afford to completely ignore opportunities altogether; instead, they should focus on cultivating and capitalizing on strategically significant chances that align with their long-term goals.
According to Peng Jianfeng, a professor at Renmin University of China, many domestic entrepreneurs today are grappling with a strategic dilemma: while having no strategy can occasionally lead to success, sustained success is far more challenging. He argues that once a company reaches a certain scale—and especially when it aspires to become an industry leader—it must shift from being opportunity-driven to strategy-oriented, and from simply "doing business" to building a true "business enterprise." Otherwise, they risk falling into the trap of opportunism.
In China's wire and cable industry, many enterprises have grown under opportunistic conditions. Unfortunately, a significant number of these companies have yet to develop a systematic approach to future growth, instead falling into the trap of opportunity-driven expansion. Decision-makers at cable companies must make sound assumptions about the fundamental questions shaping their organization's future development, fostering holistic thinking that helps shift the business from an opportunity-driven mindset to a more strategic one.
(This article was first published on CableABC.com. Please credit the source when reprinting.)
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