Do not let history repeat itself again and again.docVIP

 PAGE \* MERGEFORMAT 3 Do not let history repeat itself again and again ‘Father of Competitive Strategy’ Michael Porter, who for 33 well-known U.S. companies for as long as 36 years of follow-up study, of which each company has entered into an average of 80 new industries and 27 new areas. In these new attempts, 70% of mergers and acquisitions, 22% were related to the establishment of the new company, while 8 percent are joint ventures. However, the success rate for tracking the data is derived from a bleak picture of the scene, an average of each company mergers and acquisitions in new industries will be transferred over 50% sold; If the business into the new field, is mergers and acquisitions institutions, they will no longer be resold for more than 60%. Of which 14 companies resell the unit rate will exceed 70%. Porter pointed out: the essence of strategy is that you need for you to achieve the goal setting limits what a company does not want to try the strategy. If you want to do all essentially no different from your competitors, then you are almost impossible to be successful. Unfortunately, the statistics of the time this data is: 1950 -1986, these blind pluralism in the United States is China’s growing failure of the staged, the fact that once again proved that - history has repeated itself more than once! By Shida, for example, STAR has been in the market since 1996 (to January 2001), STAR had about 20 investment, from a single product, single-customer base to become covered by a sudden expansion of IT, consumer electronics, import and export business, real estate, diversified business group. But the STAR in almost all classes of non-IT investments are subject to failure, the most typical is the VCD project to bring 90 million yuan to the STAR economic losses. Porter pointed out: ‘if a company believes that it can provide the same products and competing in a very long time to actually do a better job, it is simply arrogant. This is especially true