7 rules necessary for the growth of SMEs

In October 2003, Huaqi Information officially launched “aigo” as a new symbol of the Patriots in Beijing, which officially blew the clarion call for Huaqi Information to enter the international market. As an IT company founded in 1993 in Zhongguancun, Beijing, aigo has grown from a small-scale enterprise focused on mobile storage products to a large group of IT products that involve mobile storage, MP3, computer chassis, displays, keyboards, and mice. According to authoritative data, Huaqi Information's turnover has maintained a growth rate of 60% for 10 consecutive years. Products are exported to North America, Europe, Southeast Asia and other regions. Aigo mobile storage products have achieved outstanding sales in the global market and the domestic market has been leading for three consecutive years. It has become China's IT product field in the previous large-scale leading international market. According to the statistics of CCID Consulting, a domestic authority, in the MP3 market in 2003, aigo Moonlight MP3 ranked first in the Chinese market with a market share of 21.3%, and achieved a domestic market share in just one year. The goal. The foreign brands such as LG, Apple, and Samsung, which have monopolized the MP3 market for three or four years, are far behind, becoming the national brand that leads the international consumer brand in the IT consumer field.

The process of Huaqi Information from the founding to the gradual growth has provided many valuable experiences and models for the growth of SMEs. This article takes this as an example to comprehensively analyze the seven rules of SME growth.

Rule 1: Accurate accumulation of technology and accumulation of small and medium-sized enterprises due to restrictions on funds, scale and other factors, not enough strength to fully introduce advanced technology, using advanced process equipment production. But it does not mean that there is no strength to introduce more advanced technology in local areas. Enterprises can choose to adopt more advanced technology in a certain product field, focus on certain products, and be more sophisticated, in order to obtain a comparative advantage in the market. Thereby achieving a breakthrough in point, and then from point to line, the development process of the surface. From the date of its establishment, Huaqi Information has selected mobile storage products from a wide range of IT products to make breakthroughs. Based on the absorption and reference of advanced technology at home and abroad, we have created our own unique manufacturing technology. Continuously learn, master, and accumulate technology in the process of technology introduction. Under the guidance of the corporate culture concept of “self-improvement, ethics and morality”, Huaqi people have achieved amazing results in global sales of mobile storage products with strong technical support.

"When a worker wants to do something good, he must first sharpen his tools." After accumulating certain technologies, SMEs develop products related to technology, which drives the rapid expansion of enterprises. After the success of mobile products, Huaqi Information extended its products to related products such as MP3 based on mobile storage technology. With the accumulation of technology in the field of mobile storage, we successfully developed aigoMP3 with high quality and high price. And it took only one year to dominate the domestic market and achieved leapfrog development. After more than 10 years of development, Huaqi Information has become a more influential IT company in China.

Rule 2: Paying attention to product quality and quality The quality of products is the basis for enterprises to survive and is the magic weapon for enterprises to win market competition. The growth of small and medium-sized enterprises is inseparable from high-quality products. Providing customers with "high quality and high price" mobile storage products is a constant commitment of Huaqi people. To this end, the company comprehensively enhances the quality awareness of employees from top to bottom. From design to final product, every step and every step has established strict quality management control procedures to ensure product quality. Change consumer perceptions of the quality of SME products. By participating in various high-level product fairs, the company will let its products compete with similar products at home and abroad, allowing customers to compare the advantages and disadvantages of the products and win the market.

What is more worth learning is the continuous improvement of the quality awareness of the employees formed in this total quality management; the continuous improvement of the quality of personnel. This strong sense of quality formed in the organization guarantees the quality of the company's products and reduces the waste caused by waste.

SMEs must develop a variety of quality rules and regulations and must go out of the circle. Enterprise managers should play a leading role in product quality management, and internalize quality awareness firmly in the hearts of all employees. This is far better than making regulations that are complicated and empty. The quality management control system of SMEs should be in line with the actual production and operation of the enterprise, and should pay more attention to the cultivation and improvement of the employee's quality awareness.

Rule 3: Emphasis on win-win and strategic partners Because SMEs are at a disadvantage in terms of raw material procurement and product marketing compared with large enterprises. The establishment of a relatively stable strategic alliance between enterprises and raw material suppliers and distribution agents is an inevitable choice for the steady growth of SMEs. Under the premise of ensuring the reasonable interests of all parties, SMEs can obtain reliable raw materials from strategic partners at a lower price. At the same time, giving distributors a certain profit margin can more effectively encourage distributors to strive to open up markets. And companies can also get more satisfactory returns. The formation of strategic alliances between upstream and downstream enterprises will also greatly reduce the external risks of production and operation, and enable enterprises to obtain a more stable growth environment.

Based on the guidance of the above concepts, Huaqi Information always emphasizes the “community, agency, employees, companies, suppliers, and society” in the process of development, and mutually beneficial symbiosis, and jointly win reasonable interests. The concept of “six wins” not only enabled aigo to win a broad space for growth, but also established a good image for the company.

The form of strategic alliances can be diversified. SMEs in a certain industrial chain often face the price and quality discrimination of core enterprises with strong strength when providing components for core enterprises. If SMEs have formed strategic alliances with raw material suppliers to produce at lower prices, they can win a more favorable competitive position and thus occupy the market. SMEs producing different products, when the raw materials are partially the same, several companies form a strategic alliance together, and the centralized procurement of the same raw materials can enhance the bargaining power and reduce production costs.