Sina Finance

Don't give competitors any opportunities

http://www.sina.com.cn 02:40, December 19, 2007 China Securities Network - Shanghai Securities News

◎ Huang Jiandong

Peter Drucker School of Management

Inner Mongolia Baotou Lucheng Road and Bridge Maintenance Co., Ltd. is in urgent need of purchasing two 12 ton double drum vibratory rollers for the compaction construction of asphalt pavement after winning the bid for several high-speed construction projects such as the overhaul of National Highway 210 and Hohhot Ring Expressway.

Wester Company (one of Caterpillar's Chinese companies) learned this news and immediately sent a salesperson to visit and introduce CATCB534DXW double drum vibratory roller to them. This roller has a high specification vibration system with high frequency and multi amplitude selection, which can be used for various working conditions and material compaction. One roller can be used for multiple purposes, thus reducing the cost of multiple purchase; High specification water spraying system, automatic speed control system, man-machine designed rack and operation control system are also very attractive. In addition, Caterpillar's agents can also provide one-stop service for maintenance companies. Caterpillar's attitude moved Baotou Lucheng Company and they decided to try CATCB534DWW.

During the trial period of nearly 20 days, Caterpillar's road rollers were also praised by the construction supervisors and operators for their superior performance and reliability.

For any project or contractor, there are two standards for judging the quality of construction machinery. One is that the machinery should be durable, and the other is that once a mechanical failure occurs, it must be able to be solved immediately. Otherwise, even if your machinery is cheaper than others, the construction contractor may not buy yours. No one is willing to delay the project in order to save a few money and suffer huge losses.

Caterpillar knows this well. Therefore, their machinery and equipment are of high quality and durable, and have a global service network. With these two principles, Caterpillar has gone through more than 80 years and grown into construction machinery, mining equipment

diesel oil And natural gas
engine
As well as the technology leader in the field of industrial gas turbines and the world's leading manufacturer, it has maintained a stable position as a global supplier and a major exporter in the United States.

At the same time, Caterpillar also knows that capital is the key to any project or contractor. Caterpillar's financial services company can help customers in this respect.

In view of the customer's intensive project and tight fund, Caterpillar suggested Lucheng Road and Bridge Maintenance Company to purchase these two rollers through Caterpillar's financial service company. The terms they offered were quite favorable: 15% down payment, a three-year lease term, and a fixed interest rate of 7.5% per annum. Compared with the general 30% down payment plus 11% floating rate lease terms, it is quite attractive. The whole approval process was extremely smooth. Two new equipment arrived at the customer's site in time, without delaying the construction period. Caterpillar Leasing relieves customers' urgent needs and reduces their financial burden.

Is such a thing a sales company should do?

Many domestic companies are now talking about "Total Solution". In fact, Caterpillar's approach is the same as IBM's "overall solution", which is essentially for the interests of customers and create value for customers. This is an innovation of modern marketing. This sales method not only sells products, but also provides related technology, maintenance, use training, financial insurance and other services. From the perspective of customers, its service results have made it impossible for other competitors to compete with it. The so-called "overall solution" that we often hear about is that once the customer enters a Caterpillar service site, all problems can be solved. There is no need to find a second one.

This kind of sales service, in fact, is not complicated, that is, leasing is also included in the marketing system, whether rich customers or customers without money; Customers who want to buy new equipment or second-hand equipment; Customers who want to rent or pay in installments; Customers who want to repair or sell existing equipment; Customers with and without operators can get satisfactory solutions here.

The blue ocean strategy takes value innovation as the cornerstone. Value innovation strives to make the value of customers and enterprises leap, thus opening up a new, non competitive market space. In Caterpillar's case, its products emphasize quality, its services emphasize timeliness, and its sales emphasize "one-stop". These practices leave almost no opportunity for competitors, and actually create a blue ocean for themselves.

When discussing the new strategy of "changing values and characteristics", Drucker said that the strategy "itself is an innovation." "It has changed the utility, value and economic characteristics of these products or services. Although from a physical point of view, these products or services have not changed, but from an economic point of view, they are very different new things."

Caterpillar still sells road rollers, but because its sales are completely from the perspective of customers, and from the idea of helping customers solve problems, this is not just a simple way to sell a road roller to an enterprise. It provides customers with an "overall solution", which improves the use value of the roller purchased by customers; At the same time, Caterpillar also excluded its competitors. In addition to profits, it also gained the company's reputation and a blue ocean. Only when an enterprise organically combines innovation with utility, price and cost can innovation bring value to customers. If enterprises can't make innovation around value, enterprises as technology innovators and market promoters tend to lay eggs, but are incubated by other enterprises. Pioneers become martyrs, which enterprises do not want to see.

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