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 Legend of Top-name |
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From tens of founder, running with 3000 employees and the distribution net covering nearly half of China, being ends Ville as E-business supplier in domestic market, the whole story is full of wonder. The initiators are familiar with the legend; however to the new comers it is still mysterious. By this publication, we can review the history and take it as a mirror to create the brilliant future. During the 12 years development, there are 4 different periods according to different time¡¯s background.
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| Early days after foundation (1996-end of 1998) |
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> Environment: Shanghai began to opening up£»
> Strategy of company: no solid development strategy, random running and marketing£»
> Service or product: Securities Times; Direct Mail ads planning.
> Team building: loose group£»
> Business development: based on delivery the press, extend to relative advertisement release business. especially the new type£»
> Running capability: the press delivery capability has been gradually founded based on the NETWORKwork of delivery station£»
> Organization and management: leaded by GM Zhu, the management team was still in searching. Mr. Zhu was very smart and thought a lot, while it was really a pity the action was limited£»
> Market: good reputation has been founded on press delivery£»
> Cost control: business development failed and cost was high£¬result: by the end of 1998, 2 million lost, debt covered the register capital.
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| Internal rapid expanding period (from Jan 1999 to the end of 2003) |
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> Environment: Yunnan Baida Investment and VC being the shareholder of Top-name and brought the new idea. As Sub-company of Baida, was being a point in whole strategy£»
> Company strategy: the board has strong strategy scheme ability, made clear development target, to build the distribution net of E-business distribution service. For the time being, profit was the first factor£»
> Service or product: newspaper delivery, DM delivery, logistic distribution£»
> Team building: the members from the national companies were wealthy, organization and management system basically constructed. Populace character was vivid£»
> Business development: New GM focus on DM delivery business, and cut off the unprofitable business (including DM magazine publication) £¬logistic business has been underlined and many kind of service were supplied, such as express, water delivery, milk delivery, at that time, deeply into business was mainly taken into account£»
> Organization and management: centralization management by GM Lu has been formed, organization well constructed. Take notice on action than thinking a lot£»
> Running capability: the capability of DM and logistic distribution has been built. The downtown layout came into being. (nearly 30 delivery stations)£»
> Market: occupied 95% share on DM business, brand has been recognized on E-business logistic distribution, the market was in seller¡¯s hand£»
> Cost control: by 40-50 projects, achieved low cost advantage supported by policy , and has good experience on cost control£»
> Enterprise culture: company values specified on prudence, diligence and obedience.
Distribution£»
From to the bad to payoff by the end of 1999, then increased by 30~50% afterwards, Top-name experienced a rapid development period, and accumulated the capital for later expanding, ensured its top position on DM business. |
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| Rapid extension development period (from 2003 to end of 2006) |
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> Company strategy: based on Shanghai Top-name, extending (running mode, business, manager, capital) to other cities. Especially in 2006, reached the peak time. 21 sub companies have been founded by the end of 2006. The extension mode was changed from related business expanding to capital expanding£»
> Service or product: DM delivery, E-business logistic distribution and COD, focus on deeply research of business£»
> Team building: members from national companies were still wealthy , with the change of GM, talents have been introduced to company£»
> Business development: main on DM advertisement delivery, logistic distribution rise up rapidly£»
> Organization and management: management has been changed from GM centralization mode to GM leading team centralization mode£»
> Running capability: capability for DM and logistic distribution, distribution net formed in developed district£»
> Market: competition with others, monopolized by Top-name has been broken; seller¡¯s market has transferred to buyer¡¯s market. The market share of Top-name was lowing down. Fortunately, other cities¡¯ DM went well. E-business logistic distribution share increased, good reputation has been recognized£»
> Cost control: policy support has gradually run out, no reasonable and systemic control strategy.
Result£º
Payoff ability still enhanced, achieved capital ability for further expanding and development. NETWORKwork in developed districts supported the business in Shanghai and others, the pacemaker position has been founded in COD market.
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| Internal adjustment period (from beginning of 2007 to end of 2008) |
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> Environment: competition became furious, buyer¡¯s market formed on E-business logistic distribution£»
> Company strategy: resource being invested from mass media to logistic distribution, while there is no clear layout on such transfer. Market position has been clarified: to be the best supplier on last mile distribution service. By use shareholder financing to satisfy the capital requirement of rapid development, and person with ability strategy carrying on satisfying the requirement of human resource. Professional consultant has been retained to solve the different specific issues respectively£»
> Service or product: DM delivery, E-business logistic distribution and COD, new type business has been researched and expand to upstream and downstream of the business chain£»
> Team building: there are a lot of adjustments of the leading group. The whole company is running stable while seems a little stiff. Person with ability strategy has been came into effect£»
> Business development: though DM business still being noticed, logistic business turn over has exceeded it. Other cities¡¯ income is over Shanghai headquarter¡¯s too. Based on the core ability of last mile logistic distribution, Topname provide the scheme to the goods from the first mail to the last,C2C,data collection and the data cleaning£»
> Organization and management: experimental management by personal authorization has been changed to management by regulation gradually in assessing system, salary system and promotion system. 2 platform, V3.0 logistic system and financial management platform system of Gold butterfly Corp. ,Top-name will improve the management, supervising and service ability greatly£»
> Market: with furious price competition, COD business is with high cost, whole industry¡¯s profit decrease hugely. A lot of logistic distribution company faces or goes bankrupt. While with the advantage of no-shop needed on E-business, Top-name faces a new challenge and opportunity£»
Cost control: policy support has gradually run out, no reasonable and systemic control strategy yet£»
External expanding: expanding by founding sub-company has been changed to flat mode business.
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