You guys r too great, let me consult a small topic for our company

I belong to GA, but I have to transfer to GB for some reason, however, I will post on both class to collect your suggestions.
Please don't hesitate to offer your advice.  Appreciated.

Background:

Our company is one of the biggest European family-owned company, with 4 subsidaries, all focusing in manufacturing.
One of them produces paper machines.  We only produce high-end paper machines, which mainly used for magazines.

However, as is known to all, with the popularization of tablet, electric magazines starting to take over paper ones.
Thus, our business were severely impacted.  This year, that subsidary has to cut salary and lay off employees.
If continues like this, I am afraid this subsidary might bankrupt.

I apologize for not providing so many info, but without detail info, might encourage you diversify your thinking.
So please discuss with freedom.

Thanks in advance.

if you feel you are not safe as well. why not transfer to other business, even industry? just like digital camera industry has been deeply decimated by cell phones equiped with camera functions, the real blow coming from ubiquitous electric media is unavoidable as well. surely, there're at least two options for your company to rejuvenize, either finding new channels that can boost sales and thus offset the lose coming from printing market, or accumulating resources by cost saving or doing other ways and finding chance to fight back and regain the market. both methods remain great risks and the furture isn't bright for you. so my suggestion is, make a change. that's no big deal. and good luck.

2013GA WU WEI wrote:if you feel you are not safe as well. why not transfer to other business, even industry? just like digital camera industry has been deeply decimated by cell phones equiped with camera functions, the real blow coming from ubiquitous electric media is unavoidable as well. surely, there're at least two options for your company to rejuvenize, either finding new channels that can boost sales and thus offset the lose coming from printing market, or accumulating resources by cost saving or doing other ways and finding chance to fight back and regain the market. both methods remain great risks and the furture isn't bright for you. so my suggestion is, make a change. that's no big deal. and good luck.

Thanks for your advice. Fortunately, I am not in this subsidary:)
However, as an employee with ownership, I am always thinking the way to save it.

An extra info: paper machine is the start of our company, thus, I am afraid the Management team will not sold this business.
The only way is to survive in this crual circumstance

Because of indsutry transforming,the structure and relationship between supply&demand would transform reluctantly,and all factors must respect to megtrend.

Acording to the case,since the downstrem change as digital prodcuts replace the paper basis,which is the megtrend and no one can stop it. The demand of paper machine will definately shrink,untill disappear at last. To my opinion, the best choice is to sell it at the top of the cry curve,especially,if this BU can't take beneft to the other 3 BU business.
Anyway, if the group don't want sell it becasue of some irrationality factors, mabye try to take advantage the know-how of high end paper machine and extend businsee to downstream. You can develop the new demand of high end paper.

Because of indsutry transforming,the structure and relationship between supply&demand would transform reluctantly,and all factors must respect to megtrend.

Acording to the case,since the downstrem change as digital prodcuts replace the paper basis,which is the megtrend and no one can stop it. The demand of paper machine will definately shrink,untill disappear at last. To my opinion, the best choice is to sell it at the top of the cry curve,especially,if this BU can't take beneft to the other 3 BU business.
Anyway, if the group don't want sell it becasue of some irrationality factors, mabye try to take advantage the know-how of high end paper machine and extend businsee to downstream. You can develop the new demand of high end paper.

David Dong wrote:

2013GA WU WEI wrote:if you feel you are not safe as well. why not transfer to other business, even industry? just like digital camera industry has been deeply decimated by cell phones equiped with camera functions, the real blow coming from ubiquitous electric media is unavoidable as well. surely, there're at least two options for your company to rejuvenize, either finding new channels that can boost sales and thus offset the lose coming from printing market, or accumulating resources by cost saving or doing other ways and finding chance to fight back and regain the market. both methods remain great risks and the furture isn't bright for you. so my suggestion is, make a change. that's no big deal. and good luck.

Thanks for your advice.  Fortunately, I am not in this subsidary:)
However, as an employee with ownership, I am always thinking the way to save it.

An extra info: paper machine is the start of our company, thus, I am afraid the Management team will not sold this business.
The only way is to survive in this crual circumstance

Stone, what's your question for this topic? I think you've explained in following reply.

1. Sell business stock or M&A. May still find its competitive edge in a large scale of business focusing on this industry. Can your company find strength running this business? If not, first let it be alive.
2. Transform the business model. Say 3D printing. But I have concern on the maturity of the market. Is it the right time?

hello David,

How about some new market territory, where the impact of the E-technology is not yet prevailling? Develop that as temporary and transitional step.

Regards
13GA YANG Xiaodong(2013960273)

Alexis YANG(2013960273) wrote:hello David,

How about some new market territory, where the impact of the E-technology is not yet prevailling? Develop that as temporary and transitional step.

Regards
13GA YANG Xiaodong(2013960273)

Would you mind kindly provide some examples of "new market territory"?
Thanks

Each product has its lifecycle and every business have lifecycle too.The world is changing, new ones come while old quit. Maybe we need change our question from ' how to save it' to 'how to change it' to fit current changing enviroment.

What's the core competency in your company? eg: manufaturing tech
Can you use existing competency to develop some new products which meet current customer needs?

Only change can make sure survival since we are in a changing world.

Thanks

13 GA ChenLiqiang (Antony) 2013968873

This is normal for every industry. With the development of technology, things change so quickly. What we can do is to keep pace with the new technology and new marketing trend and start making strategic planning before some problems happen.

These days books magazines industry are affected a lot, that's directly related to paper industry. I think for your company, you may think about: 1) can you apply your key technology into other industry. even if the paper industry is affected, the technology is still useful. 2)find some new industry that need paper, except books magazines.

Problem will never be a problem if you have plan to solve it.Thanks

Chris Zhou Hui
2013968835