2013年11月16日星期六

A murder caused by a piece of cake

It is reasonable that people tend to compare the market to cake. I have summarized some similarities between market and cake:

1. Most people like big cakes, just as people wish the market of demand to be bigger.

2. If a cake is shared by many people, then everyone wants to get a big part of it, even the whole of it. Similarly, when enterprises share one market, every enterprise wish to own a large portion in  the market, even to have monopoly.

3. Even if you have obtained a big piece of cake, you will have difficulty digesting it in poor health. Similarly, if one enterprise does not enlarge its market shares and without effort to perfect its mechanism simultaneously, it will lose the cake in hand sooner or later.

4. The cake cannot be infinitely big. When everybody fights at outrance for a piece of cake, there will be someone who has covered the unimpressive piece of cake in the corner. He may be enjoying it and seeing the drama about others fighting for the cake. In real life, such cases as opening a new path are too numerous to mention one by one. Bill Gates is one of the examples.

The general summary of the above four points are the four aspects through which I want to audit and analyze Huawei and Cisco from the perspective of market. In other words, what is market? How to occupy the market? How to enlarge the market? And how to exploit a new market?

Obviously, the market is not in isolation. The development makes it not only depend on demand, but also it is linked with politics, economy, social culture and technology. Therefore, in order to analyze the market, we must understand the big environment, namely macro-environment. 

SUN Jiawei



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