"China's godfather of air conditioning" Tao Jianxin: spend 10 billion to buy the lesson, and to repeat in Gree?

Introduction: A person's success does not care what he has in the past, but lies in a person who can stand in the same place for a long time. And on the road to success, a little carelessness is easy to fall into the abyss.

Speaking of China's godfather of air conditioning Tao Jianxin, I believe that many people still have a deep understanding of his legendary history, to be honest, for Tao Jianxin, his success is evident ****, once there belonged to his brilliant years, only due to their own selective and strategic development, there is a small regret, so let his splendor fell into the trough at once.

The road to success has experienced too many bumps.

Tao Jianxin for this person, he actually has a great advantage, is for the technician originated from him, has a strong technical support. So at that time, it was also a critical task to manage the state-owned factory on the verge of bankruptcy, that is, the predecessor of Chunlan brand - Taizhou Air-conditioning Equipment Factory. This small state-owned factory was not particularly prominent in the scale of air-conditioning equipment at that time, but it did not highlight the relevance of this small factory due to the production of a lot of diversified products, but the market share of these products was very low.

In the face of this situation, Tao Jianxin also very decisive out of their own views: For the market demand, targeted development of products, remove the redundant products. From this move, it is not difficult to see Tao Jianxin his leadership and decision-making ability is still very strong. So the small factory under his leadership, it gradually develops suitable for family use of cabinet air conditioning, less than a year's time to occupy a market share of ninety percent of almost monopolize all the domestic market.

In the following three years, Tao Jianxin also officially named the state-owned factory Chunlan Refrigeration Equipment Co. With the increase of market share, Tao Jianxin led, Chunlan also got a qualitative leap and change. All the way to the top of the success, so the title of "godfather of air conditioning" is well deserved.

The ambition of the huge, resulting in tens of billions of assets evaporated.

Perhaps at this time, Tao Jianxin, with superior leadership and decision-making ability to create the Chunlan equipment company, the market share in the gradual increase in for an entrepreneurial identity, certainly will not be satisfied with the status quo. So at this time she also gradually to diversify , so that not only the production of air conditioning, so he listed on the A-share, but also can not wait for the automobile, motorcycle, truck industry intervention. It is also due to the development of these side business, which led to the main business of the depression.

At that time, perhaps the most noteworthy brands of trucks for people's impression were "Dongfeng" and "Jiefang". These two big truck brands at that time is also the premier, so Tao Jianxin in the choice to enter the truck industry is his decision-making is also doomed to its decline. So with the recession in its own industry, coupled with the diversification of the side business led to its investment did not receive a good return.

According to the news at the time, Tao Jianxin also invested tens of billions of dollars in assets in the production of trucks. However, with the sudden change of the situation in the truck industry, heavy-duty is more and more demanded by the market, so Chunlan Equipment Company due to the team does not have the technology of heavy trucks, and there is no corresponding technical support to the outside world,so the Chunlan Trucks that he set up has gradually lost its advantage. So it was in 2008 that Chunlan Group sold its trucks to XCMG Technology. That was the end of Chunlan's diversification path from then on.

So many people may feel that the original good move, due to their own blind confidence in choosing the direction of the market conflict, will lead to Tao Jianxin's Chunlan company suffered a great bottleneck, so for an air-conditioning industry as the main business of the development of the company, it should be aimed at the product to have a further research and development and improve, so should not go to develop other areas at this time. It should not develop other areas at this time.

So in this case, Gree Group also seems to be diversifying, and many people feel that Dong Mingzhu is not going to repeat the same mistake? How? Personally, I think for the Gree Group should not repeat the Chunlan formula back.

Geli Group has not completely abandoned the main business.

From the direction of development of the Gree Group in recent years, it is although in other areas are involved,but from the fundamental point of view, Dong Mingzhu also did not give up the main business direction of Gree air conditioning. Rather, it is in the technological research and development at the same time in other areas to give the corresponding subsidies, from this point of view, in fact, the two also have a complementary role.

And for Gree air conditioning, he not only has for home use, but also for commercial use. So in this case, Gree Group's development strategy is much better than Chunlan Group. Although Gree in other areas of the development of the road also encountered a lot of obstacles, but fortunately on the essence of Gree did not cause a great crisis.

So for Chunlan and Gree Group, the two major air conditioning brands. To develop a diversified road, in fact, there is nothing wrong , the key still lies in the need to be targeted to stand out, and do not invest too much money in other industries, thus sacrificing their own main business such a behavior is actually the cart before the horse.

At the same time in the development of other industries at the same time, but also to do a good job of the corresponding market research work, not to say that everyone is suitable to do other industries. So diversification does not depend on one's assets, but on whether the team you lead is suitable for this industry? Instead, it's all about the weight of other industries. That's the direction you should consider as a decision maker.

Conclusion:

Of course both for Tao Jianxiong and Dong Mingzhu, these two well-known entrepreneurs, their success and moments of glory, is to make a lot of people admire. Although for decision-makers, there are times when there are differences of opinion and blind confidence, these are reasonable things, no matter how the end, as long as they can reasonably control is the best.