Analysis, The Process Of Innovation And Development Of The Group In The United States

The innovation is the spirit of the nationality upgrading and is also a continuous power of the national thriving. Studying questions with respect to the innovation and putting forward suggestions to the innovation will be significant to reforming state-owned enterprises, increasing their active power, and dealing with intense competition from domestics and foreign countries.In the past 30 years, Midea Group was developed into a large-sized group manufacturing white electrical appliances as core businesses and some other small electrical appliances as well from a small town enterprise.This paper took Midea Group as an example to fully analyze its creation process based on practical examples and theoretical methods. From the analysis of actual examples, it was found that the key of Midea Group's success is based on the system, organization, technical, management and marketing innovation, which created its core competence, upgraded such competence in the practical process, and resulted in the market share increase and the customer recognition.According to the definition of "innovation" by J.A.Schumpeter, only the manager that can take creative reactions to the economic environment can be called "innovation". In the development process of Midea Group, Mr Henjian He, Chairman of Midea Group, played very important roles. With the sensitive feeling and outstanding courage, Mr.He caught several key chances for the development of Midea Group, which represented the importance and value of a "creation". The core competence comes from the innovation, while the innovation is to effectively integrate business resources and intellectual resources of an enterprise. Over years, Midea Group carried out exploration and creation in the respects of the equity structure, organization structure, incentive plans and enterprise cultures, which improved Midea's management capability, increased productivity, and formed its strength in the competition.The writer thought that Midea Group 's experiences in the creation should be helpful to reforming state owned enterprises. The reforming of state owned enterprises should start from the ownership system, promoting the transfer of the management system, establishing a perfect corporate management structure. To adapt the new competition environment, cultivating a creation team that master social market economy, strengthening technical innovation, creating positive and vigorous enterprise culture, modifying management system, and increasing the quality of enterprises are required.According the tenth five year plan, Midea Group will try to be an international electrical appliance manufacturer. From the macro level, globalization, intellectual economy and China WTO entry will be benefit to electrical appliance exporting, production cost reduction, establishment of a modern enterprise system, and the establishment of a open, competitive and ordinal market system. From the micro level, the electrical appliance market is prosperous. But the competition is very strong, manufacturers' dispersion is high, and capability of technical development is low. Therefore, the writer thought that Midea Group would need further creation, to realize its tenth five year goal.