The presentation shades light on the success of The Tingyi Holding Corp. from a small family business to a game changer in the Chinese Food Market and how Strategic Agility played the cardinal part in this process.
2. The 21st Century Business: its different
All but the most closely held information easily
available to anyone, anytime.
Capabilities change overnight through alliances.
Talent is uniformly located roundly.
No stopping of rate of market and technology
change.
Paradigm shifting inflection points.
WHILE WE WERE SLEEPING, THE WORLD BECAME ‘FLAT’ – THOMAS FREDMAN,
a renowned economist describing the rapid global transformation and
convergence of new forces of change.
3. Strategic Agility: the new competitive metric
The ability to sense and take advantage of
opportunities by planning and executing far reaching
business changes swiftly and effectively without losing
momentum and alignment.
STRATEGIC AGILITY is NOT just the ability to be quick,
but also to take strategic turns TIMELY and strategic re-
direction at HIGH SPEED…..IN TIME!!!!!
Most companies die not because they do the wrong things, but they keep
doing what used to be the right things for too long…
4. Why Strategic Agility??????
Conventional
Management
Systems
Slower cadence
than relevant
market and
technology
changes.
Often consumers
are taken for
granted.
Changing
directions is too
hard due to
“Systems” build
behavioral inertia.
Wasting of
enormous energy
by generating and
assessing too
much information.
“When the rate of change inside an organization is less than the rate of
change outside, the end is near” – Jack Welch, Former Chairman & CEO,
General Electric.
5. Tingyi Holding Corp. : strategic agility harbinger
Name: Tingyi Holding Corp.
Founded: 1991
Parent: Ting Hsin International Group.
Headquarters: Binhai, Tianjin, China.
Industry: Food Processing.
Products: Instant Noodles, Ready-to-drink
beverages and Foods.
Most Popular Brand: Master Kong (Instant
Noodle)
Market Cap: $12.2 Billion (As of May 2015)
Ranking: 77 (World’s Most Innovative
Companies, Forbes)
Starbucks and Tingyi Holding Corp. signed a
$6 Billion Contract on March 18, 2015 to
manufacture and expand Starbucks RTD
products (coffee and energy drink) in
mainland China.
Master Kong Instant Noodles
Master Kong Ice Tea Drink
6. The Tingyi Story: a success that is earned, not given
To capture the booming Chinese food
market they moved from Taiwan to China
and begun experimenting with innovative
strategies.
They prioritized the preferences of the
paying public and started adapting their
strategies based on them.
As the Chinese market was there to be taken, they
tried with premium cooking oil, egg rolls and
biscuits. Though they failed, the important thing
was they were honest and moved on each time.
They stumbled upon the plan of an instant noodle that is
more than average in quality but still affordably priced and
thereby exploited the market gap between low end and
premium imported noodles.
When the finally found the door of success,
they exploited that by investing a hefty sum
just on advertising and formulated flavors
appealing to eccentric consumers.
They did not sit pretty on their success. Though
their instant noodle was a sensation, they
expanded their range by trying out in baking
products and RTD drinks.
7. The Tingyi Lesson: be agile not fragile
BE A PART OF THE
MIX:
be brave enough
to try out the
volatile market
rather than
waiting on the
sidelines for
eternity deriving
picture perfect
strategies.
CONSUMER IS
GOD:
prioritize the
preferences of the
consumers rather
than forcing one’s
plan and being
aloof from them
and gather the
facts from the
ground not from
the periphery.
BE FLEXIBLE:
rather than being
egoistic one needs
to improvise when
the panache
strategy backfires
and move on.
CATCH THE
MOMENT:
when one
discovers a market
gap, go all out and
exploit the
opportunity to
have no regrets of
not trying later on.
DON’T BE STATIC:
cure the curse of
success, when one
plan is doing
wonders and
racking in the
moolah, don’t be
rigid, be agile and
keep exploring and
finding out new
scopes because
every cycle has an
end.