《Get closer to hundred excellent enterprise》-Megmeet: Move forward with beginner’s mind
Dr. Haiping Liao, GM of Megmeet drive technology, introduced story of the company, and also challenge and opportunity facing ahead, as he have been interviewed.
Market selection, focus on something not everything.
Enterprises are facing a very tough business environment, described as a severe winter for the economic growth, as well as cruel price competition. In the traditional inverter market, technical barriers for new player to enter is becoming lower and lower, price and other business condition is key factors for companies to get the market share.
In order to make a survive, many companies are squeezing its profit painfully, having no choice but accept harsh conditions offered by customers, and involving into price competition. But there is one exception, which is Megmeet. “Since found of Megmeet drive, our product focused on middle and high end application in niche market. Price competition has a major impact on these who focused on low end market.” Dr. Haiping Liao explained why Megmeet managed to stay out of price competition. In the earlier days, Megmeet Drive team had a dispute on the direction of company, middle and high market or low and general one? During then, for general invertor market, technical barrier f is relatively low, lead time is short, and cash flow rate is high. Middle and high end market means long term but huge RD invest, and long time for the market to accept, but the really risk is tough competitors, foreign companies with strong team and domestic companies with infinitely amount cash and aggressive market strategy after listed on share market. Can a start-up company make a break-through in the market, and survive to have a good day? Every important decision tied to the fate of the company. In order to make money in short term, general market would be huge attempting at that time. Dr. Haiping Liao, with more than rich experience and technical expertise, led the team resolutely to took prompt actions to reach middle and high market, over the opposition of others. Recent years, Megmeet Drive cultivate in niche market of intelligent manufacture market and renewable energy vehicle market. They put lots of effort to develop solution for machinery, CNC machine, elevator, injection molding machine, and renewable energy. Due to this, after rapid growth of last year, it takes only half year to achieve same amount of revenue of last year, a perfect financial performance could be expected in the end of this year. More importantly, Megmeet is getting much confident for its strategy of marketing and operation.
Grasp the opportunity and let product speaks Jun Lei, founder of Xiaomi, had a fairly controversial but famous theory, flying pig theory, which means under the guidance of the policy "wind", every company can achieve dramatic growth. Dr. Haiping Liao believes only these company, who recognized the trend of the policy wind and get well prepared, can take good advantage of the policy”wind”. As there is a saying, the insider knows the ropes, while the outsider just comes along for the ride. No matter when it comes to intelligent manufacture or renew energy field, Megmeet Drive have made great success. But only rare people know Megmeet start to work on renewable energy vehicle market since 2011. There were hard time then, but Megmeet never gave up and became the first few companies benefit from booming of the market. Other company cheered up for the opportunity of renewable energy, but Megmeet Drive unusually calmed down, since they are these who are really get ready for the opportunity. The only thing they have to do is to continue to strengthen the internal organs, seize the opportunity. Of course, sailing is not always smooth for the development of renewable vehicle. In the first half of 2016, some car manufactures have been reported to cheat and play tricks to get government compensation, which is strike to the market. For the second half of 2016, government adjusts its policy to save the market. Dr. Haiping Liao is very optimistic for the future of renewable vehicle. “While prospects are bright, the roads have twists and turns.”as he told journalist. For every enterprise, they should accumulate and precipitate, and then well-grounded. To get a better position in the market, as a start-up company, Megmeet understood that: take good advantage of company strength; always seek competitive differentiation; let product speak in the market; respect talent and find new talent, and focus on team building. Product is an integration of technical performance and price, and also an ultimate weight to win the market share. Now internet+ makes good products known by customer over one night, and bad products ever faster, this means, for the company, produce good product is essential condition for the market to accept. What Megmeet always pursuit is to be excellent in the niche market, to iterative updating of product to meet customer’s requirement. “We didn’t launch too much brand new product, but more focus on iterative updating and continuous improvement” Dr. Haiping Liao preferred to define it as kind of micro innovation. Considered as a start-up company with very limited resource, but much flexibility of management, micro innovation will keep product competitive in the market but have no impact on sustainable development of the company. Now, the target for Megmeet is not only focus on domestic market, but to explore oversea market. It’s not only a vision for Megmeet, but also for many other Chinese companies.
In this era, the atmosphere is more impetuous, in the view of Dr. Haiping Liao, companies should look into sky to distinguish direction as they walk forwards. As set a target, never give up until get the target.
“If our team give up during 2011 and 2012 when the market for renewable vehicle is not so good, no insistence no accumulation, Megmeet will have nothing to do with the policy wind”. Mindset of invest today and get output tomorrow is getting companies anxious to achieve quick success and get instant benefits. Megmeet had foresight for the future of the market, spent time to set market layout, know the importance of insistence, and get closer to target. Maybe all of this, make Megmeet seize the opportunity of renewable energy vehicles and drive into lane of fast speed.
Develop team and its culture The importance of talent has become increasingly prominent as the company grows fast. Megmeet took active actions to develop team. First of all, even the business environment is tough, Megmeet always hire new high quality talent. Gradually promote salary and bonus of the team members, to have a competitive salary in the labor market, and also solve the practical problems of team members. Create opportunity for employees to develop their own career in a good atmosphere. Relocate manufacture and RD center to lower cost area to attack talent nearby or these who are willing to return home from Shenzhen, which is probably one of the highest living cost cities worldwide. The importance of talent has become increasingly prominent as the company grows fast. Megmeet took active actions to develop team. First of all, even the business environment is tough, Megmeet always hire new high quality talent. Gradually promote salary and bonus of the team members, to have a competitive salary in the labor market, and also solve the practical problems of team members. Create opportunity for employees to develop their own career in a good atmosphere. Relocate manufacture and RD center to lower cost area to attack talent nearby or these who are willing to return home from Shenzhen, which is probably one of the highest living cost cities worldwide. An excellent team normally comes from a soil of good culture. What Dr. Haiping Liao emphasized most often is “good good study, day day up”. Though that’s a saying having been heard for many times and get familiar by many people, but only very few people can practice them in daily life. Now the competition is quite different from its past, more fierce and more cruel. Only these companies, who learn from competitors, move forward with the times, keep advanced level in technology and management, be sensitive the market trends, can survive in the competition. Megmeet Drive cherish culture of “good good study, day day up”, not only each individual employee, but also management team. “good good study” indicates every team member should keep learning new technology in professional, make personal improvement, develop ability to distinguish information in a world flooded with information. “Day day up” means to be a positive energy holder and spreader for every employees, be optimistic to face failure and challenge. For the manner of management in Megmeet Drive, it’s quite tolerant to have dispute, any advice or suggestion, or even quarrel for same times, but not tolerant to opposite manner of keeping quiet during discussion on table, stirring up troubles after the discussion. As a member of team, the right channel for discussion from bottom to top should be face and report issue in a positive way, and actively find solution to solve problem, to make the company better. An employee, refused to discuss rationally and always complain and vilify company, is not welcomed by Megmeet, and should be not welcomed by any company. Megmeet Drive cherishes talent but not these have conflicts with company culture to keep the whole team positive. As has taken right actions in marketing and sales, product management, company operational, and team culture, Megmeet is now managed to get through the so-called economic winter, while others are quite struggling. Dr. Haiping Liao and his team believed there will be higher requirements from market as the golden time from intelligent manufacture and renewable energy comes. These new requirement will bring new challenge and of course chance to the market. In the future, Megmeet will face the challenge ahead, and make new achievement in the policy wind of intelligent and renewable energy.