Take precautions against the wisdom of the Caterpillar Valley

Sadness, too. Behind the rapid growth of the economy, it will be the arrival of the low valley, and after the economic cold period, it will certainly recover. Any industry will experience a climax and a trough period. The key is that enterprises should have a predictive vision and make good use of measures so that we can enter Caterpillar's world and see how the world giants are perfectly using them.

As the world's largest manufacturer of engineering machinery, Caterpillar is not going well all the way. In the course of 90 years from 1925 to now, Caterpillar has experienced repeated financial crises and changes in the economic cycle.

Every change, for Caterpillar, is a rare calendar, but also to promote the growth of Caterpillar opportunities.

Facing the market dilemma, Chen Qihua, the vice president of Caterpillar and the chairman of China, put forward three points for Caterpillar to cope with China.

1. the unique business model is combined with the connotation, dynamic and demand of China's industry and economic development.

2. research and development and launch products that meet the needs of China's market.

3. to provide customers with high cost performance products, to achieve their earnings growth.

"Those who do not understand the change will be destroyed." - Lao Tzu. How to still stand up in the low valley is the primary task for an enterprise to face the danger.

To deal with the method about the market environment change, chairman Chen Qihua introduced trough scheme theory of the development of circular economy -- Caterpillar either keenly aware of his chairman and CEO Owens and Caterpillar.

Owens, the chairman and chief executive of the former Caterpillar, knows that the economy is bound to enter the valley after a number of years of rapid growth. Therefore, even in the market generally optimistic situation, in order to deal with this cyclical change, Owens asked Caterpillar business department to draw up the low valley plan in the world.

"I was the general manager of Caterpillar (Xuzhou)," recalls Chen Qihua. The market in the world and our country was excellent at that time. We thought more about how to do it quickly and finish the growth of 20% - 30%.

However, we still have a low valley plan in accordance with the headquarters plan. When the cold wind blew in 2008, Caterpillar implemented the lowest plan quickly. Although the global business decreased by 35% -- 40%, we still achieved profits in that year.

Now the domestic market has been in a continuous downturn for three years, and every manufacturer in the construction machinery industry is aware that the transformation of business and strategic development is imperative. From blind expansion to rapid growth to the pursuit of sustainable development, not only is the construction machinery industry, but also many other industries in China.

In the past time, Caterpillar has gone through the high mountains and has gone through the trough. In those days, many Caterpillar's long-standing business philosophy has been precipitated.

Every business has its own destiny. If you want to make your company better, you have to stand on the shoulders of the giants and see further.