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[Silly] At first glance, it looks stupid, but the more you look, the more you look, the more you survive the strategy.
Roughly speaking
- The origin of competitive strategy as a story.
- A collection of stupid strategy examples
- My worries have not changed since 1988. The worries about expanding overseas.
Competitive Strategy as a Story
We previously introduced the bestseller, "competitive strategy as a story."
The author, Kusunoki Ken, is a professor at Hitotsubashi University, and there is a book that impressed me when I was a young man.
This is Yoshiwara Hideki's ""Silly" and "I see" (Yoshiwara Hideki/PHP Research Institute).
In fact, this book lies the origin of ideas written in competitive strategies as a story of irrationality at first glance.
This book features many interesting examples. Now let's take a look at a case study going back to 1988.
Idiot case
The examples in this book are a bit harsh.
Many mid-sized manufacturing companies will appear that will survive the turbulent times.
They always face the market and continue to grow their businesses while burning their lives and burning, even as the industry is dying.
Let me introduce some examples.
Hotel Hyakumangoku is still famous today as "Kaga Hyakumangoku" in Yamashiro Onsen in Hokuriku.
In 1985, the company built a huge convention facility in the middle of the rice fields, with a large 600-tatami room.
The location was at its worst, with only rice fields surrounding it, and local residents were mocking it, saying, "Was the president crazy?"
However, the results were a huge success as intended as a convention venue.
Yoshida Toyohiko, the president at the time, had a good chance of winning.
At the time, he answered the following reasons:
1. Japan's hot spring inn districts are located in the direction of developing from Yamate to the city. Building up the mountains will lead to the formation of a hot spring town.
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2. Hotels and inns are so important that those who control the land control the inns. If you are constrained by land, you will not be able to develop your strategy to your heart's content.
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3. The company's management philosophy is that hot spring inns must be a place to restore humanity. There must be plenty of greenery, water and soil.
He also said that he was inspired by the decline and revival of Las Vegas.
Las Vegas was famous for its gambling and women, but gradually declined. However, Las Vegas has regained its vibrantness as a convention city, and many conferences are being held to this day.
A hotel owner other than Hyakumangoku would have never imagined that a weak hot spring town in Hokuriku would take on the role of a convention city.
Management worries that have not changed since 1988
The company gradually falls, with only ideas that are extensions of existing ones.
Murphy's Law prioritizes existing operations over new businesses. A rigid tissue.
The worries about expanding overseas. No matter how hard you try, if you don't thoroughly implement the actual product in the area, the local OEM companies will not change.
The overseas expansion simply due to manufacturing costs and the strong yen fails, and the obsessive company with the dream of being a foreigner is successful in expanding overseas.
Mercari, which has recently been committed to expanding into the United States, has grown significantly thanks to the COVID-19 pandemic, and Mercari's expansion into the United States, which has been seen from a cold perspective for five years, is beginning to be successful this year.
Mercari's president, Yamada Shintaro, has continued to enjoy his dream of expanding into the United States, and can be said to be the result of his loyalty of trying out costs.
Game Change A game change in the flea market market won by Mercari
The issues that all presidents had trouble with in 1988 have remained fundamentally unchanged.
The fact that competitive strategies as stories become bestsellers is also due to the timeless commonality of management issues.
I hope you will still read the suggestive "Silly" version.