Thin Goose Theory: When Wang Yongqing first proposed the "Skin Goose Theory", he focused on how companies can survive various crises. And think that the word "crisis" is well said, there is a chance if there is danger, the front is danger, and the back is opportunity. When the financial crisis is raging, it may be an opportunity for some companies to develop, because at this time, whether it is investment expansion or straightening out management, it will take a certain amount of time. Treat this period as a transitional period for the company and wait for the financial crisis to pass. , May usher in a better development opportunity. It is as if those thin geese catch the milled rice and eat the broken vegetable leaves, and they will soon become a fat goose.
Later, Wang Yongqing used the example of selling ice cream to teach his children the "Thin Goose Theory", which gradually evolved into the ice cream philosophy.
Ice cream philosophy: In summer, there are vendors selling ice cream everywhere on the street. The market competition is fierce, and vendors can barely survive. If you want to enter the ice cream market now, how can you make money under such fierce competition? The answer is to start selling ice cream in winter. Because the ice cream market in winter is very sluggish, but there will be customers. The secret is that in such a difficult environment, we will desperately optimize procurement, distribution and other links to reduce costs; and we will continue to improve marketing capabilities. Stimulate many good ideas for promotion and expand the market. Difficulties can force you to improve your survivability. In winter, you can maintain a balance of payments. In summer, you will naturally be better than ordinary vendors.
Proposed by: Wang Yongqing, a famous entrepreneur from Taiwan, China
Comment: When there is a crisis, it is a good opportunity for you to expand. Gnaw the "hard bones", and the rest is "a piece of cake".
The ice cream philosophy is a conclusion drawn by Formosa Plastics Corporation Chairman Wang Yongqing after summarizing his own business. The success of Formosa Plastics is largely the result of Wang Yongqing's insistence on investing in the plastics industry during the economic downturn. In market competition, business conditions have risen and fallen, and economic conditions have also been prosperous and depressed. These are not things that anyone has the ability to change, or are unpredictable. When the economy is booming, some operators will catch up with the trend and make a fortune; but when the economy is in recession, they close their doors to survive the dark period.
However, if an enterprise wants to become bigger and stronger, it must learn to grasp the opportunities in the economic downturn. Precisely because most people died down during the economic depression, this is the ideal time to explore opportunities. When the economy recovers again, companies that dare to seize unpopular opportunities will be able to obtain more opportunities than ever before. Wang Yongqing, chairman of Formosa Plastics Corporation, is an outstanding representative of seizing unpopular opportunities during the economic depression.
Formosa Plastics Corporation was founded in 1954. After more than 40 years of hard development, it now has more than 20 affiliated companies including Formosa Plastics, Nanya, Formosa Chemicals, and Formosa Petrochemical, with factories in Taiwan, the United States, the mainland and Indonesia. , Becoming the world's largest company in terms of output of polyethylene compound resin. In addition, it has huge educational and medical institutions, and is the largest private enterprise in Taiwan Province.
In 1954, when Wang Yongqing invested in the plastics industry, Taiwan's demand for polyethylene compound resins was low. Formosa Plastics produced 100 tons per year in the first phase, while the annual demand in Taiwan was only 20 tons. What's more, Taiwan Province had several processing facilities. The factory obtained cheaper polyethylene compound resin supplied by the Japanese. This hit "Formosa Plastics" hard and almost went bankrupt. Facing this reality, after repeated analysis and research, Wang Yongqing made a surprisingly bold decision: continue to expand production! He believes that instead of just waiting for it, it is better to create a market bravely. Only mass production can reduce costs and lower prices, so that products are not restricted by regions and attract more customers.
While expanding the production of Formosa Plastics by 6 times, Wang Yongqing also founded a company that processes Formosa Plastics products, namely Nanya Plastics Industry Co., which specializes in downstream processing and production for Formosa Plastics. According to Wang Yongqing, "At that time, it was really hard to ride a tiger." After continuous exploration and summary, the business of Formosa Plastics and Nanya began to improve, laying the foundation for him in the plastics industry.
After this incident, Wang Yongqing also realized many business tips. He once said: "When the economy is down, it may also be the right time for companies to invest and expand their expansion plans." He believes that when products are slow and the market is depressed, it is the best time for companies to exercise their hard work. Operators must be calm and calm, clenched their teeth, improve overall quality, and continuously improve the internal management of the enterprise, so as to reduce production costs and increase the competitiveness of the enterprise; if they have spare capacity, they can draw up a complete investment plan and master the appropriate Opportunity, make effective forward-looking investment, turn the crisis into an opportunity. Wang Yongqing said: "Selling ice cream should be opened in winter." The implication is that selling ice cream in winter, the business is weak, and it will certainly prompt sellers to work hard to improve management. Then, when summer comes, you will have more obvious advantages than other latecomers.
It is precisely in view of this point of view that Wang Yongqing went to Texas to build large-scale petrochemical plants when American petrochemical companies closed down and shut down. He successively bought two petrochemical plants and eight PVC processing plants. In 1985, when the economy on the island of China was extremely sluggish, Wang Yongqing unexpectedly declared that this was the best time to invest and invested NT$4.7 billion to develop the information and electronics industry. Later practice proved that Wang Yongqing's views were indeed superior.
Formosa Plastics has successfully purchased and operated several petrochemical plants around the United States. There is a Delaware petrochemical plant in Texas that has suffered losses for more than ten years and changed hands three times. Many major petrochemical companies in the United States and the United Kingdom are unable to do anything about it. However, in 1981, Wang Yongqing, who had only received a primary school education, bought it. In the third year, blue letters appeared on the company's income statement. In July 1985, the American "Forbes" magazine wrote in an introduction article with Wang Yongqing as the cover: "On this ancient product, DuPont can't make money. BF GOODRICH (the 17th largest petrochemical company in the United States) planted a battle, but Wang Yongqing was Brought to life." Under Wang Yongqing's management, the Delaware plant has an average profit margin of 21% in two years. Over the years, the same story has been repeated over and over again in Louisiana and Texas in the United States.
Wang Yongqing's entry into the United States has attracted the attention of all walks of life in the United States. In the United States on the other side of the Pacific, no matter whether it is on the ground, underground or buried in the water, one-fourth of the PVC water pipes are produced by Formosa Plastics. The plastic products produced by Formosa Plastics in the United States are already in a pivotal position among their American counterparts.
When Formosa Plastics was first established, it was ridiculed as only "laboratory scale." After Wang Yongqing's continuous hard work, he finally got his wish and became the world's super-rich and established a huge plastic kingdom. Achieving these results depends on Wang Yongqing's business philosophy, daring and good at panning for gold where others have given up. There are always many similarities in history. The Greek businessman Onassis, known as the "World Ship King", can achieve the success of his own business because of Wang Yongqing's business philosophy.
Onassis has more than 400 ships with a transportation capacity of more than 7 million tons. Achieving such results, many people think that he, like other rich men, made his fortune through hard work and primitive accumulation. However, the facts are not always true. The secret to his success lies in being good at finding business opportunities where others have given up. In the late 1920s, when the economic crisis swept across the capitalist countries, maritime transportation was on the verge of paralysis, ship prices plummeted, and shipowners dumped their ships at low prices. Onahsis has a unique vision, and firmly believes that the economic crisis will always pass and the recovery will not be too far away. By then, the business opportunities for maritime transportation will remain unlimited. So, he spent 120,000 US dollars to buy 6 merchant ships originally valued at 12 million US dollars. This move was the most critical step for him to become the world's ship king in the future.
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