Konosuke Matsushita'S Concept Of "Tap Water"

Konosuke Matsushita had thought about business at that time, and he hoped that he could understand and explain the purpose of operation and the value of an enterprise from a more essential angle.

In the era of Panasonic's continuous development, he often asked himself: "we have been doing business according to the common concept of society, and it has been successful. However, I feel more and more that this is not enough.

What is the mission of an enterprise? I ponder this question for several days until late at night, finally, I have the answer.

In short, Konosuke Matsushita believes that the mission of an enterprise is to eliminate world poverty.

For example, the water in the pipe is of great value. However, drinking water on the roadside is not to be paid without being blamed. This is because the water resources are relatively abundant.

Corporate social responsibility is the same. It is to enrich the world's goods to eliminate all inconveniences.

"The ultimate goal of enterprise management is not interest, but the hope of the masses entrusted to us on the shoulders to fulfill our obligations to society through numbers.

The responsibility of an enterprise is to make things that the public needs as cheap as tap water.

In fact, Konosuke Matsushita discovered this "truth" after more than ten years of establishment in the enterprise, which was mainly inspired by the religious cause and its value.

In 1932, when Konosuke Matsushita was persuaded by a friend of Buddhist dealers, he visited Tianli headquarters, and was deeply shocked by the scenes of all the Buddhist monasteries living in full swing, regardless of fame and wealth and selflessness.

He realized that if the business operation can also be like religious cause, it can also have strong productivity through belief and material values.

At the same time, he further realized that the existence of enterprises has the same sacred value as religious communication.

Religion can bring spiritual comfort to people, while enterprises can create material wealth for the world, and the two are sacred businesses.

As Panasonic, its top mission should also have universal concern. So he thought of the "tap water", a seemingly ordinary but valuable product. It believed that business operations should be produced like tap water, which is widely needed for people. Two, products that are so cheap that everyone can enjoy it can only carry out business activities on the basis of this value, so that they can have the most powerful driving force, gain huge market share and win the respect of consumers.

After realizing this point, Konosuke Matsushita was very excited that he had found "life knowledge" and set the May 5th of Showa seven (1932) as the company's business day.

In order to achieve this mission, Konosuke Matsushita also set the goal of 250 years, taking 25 years as a stage and completing the goals in 10 stages.

At that time, Konosuke Matsushita believed that the company was still in the first stage of laying the foundation.

The concept of "running water philosophy" is not a passive water. It is in line with the early business philosophy of Panasonic.

In the early days, Panasonic paid more attention to the strategy of market orientation and pragmatism.

In particular, we should not invest too much resources in technological innovation, but rather intervene in a market with strong demand.

Through short, flat and fast development mode, mass production of products of low cost, high quality and low price will win huge market share, and at the same time, further reduce costs and reduce prices, and then gradually achieve the same level of products as tap water.

{page_break}

Panasonic's pioneering research and development of shell type headlights and the use of radical sales strategy to win the case is a reflection.

Panasonic Corp initially saw the demand for bicycle lights at that time, which was quite large and growing. However, there were various kinds of serious flaws in the existing product categories. Therefore, we decided to independently develop and manufacture a substantially improved battery lamp, which is not only simple in structure but also durable in use.

But I didn't expect that new products with excellent performance and low price were not recognized by customers at the very beginning.

Therefore, Panasonic took a bold marketing strategy to enable retailers to pay for products sold, while stores also believed that customers were satisfied when they paid again.

The success of this "artillery bicycle lamp" depends on the radical sales strategy itself.

More importantly, the driving force behind this strategy is that Panasonic always sticks to the high sensitivity of customer needs and the development of new technologies to meet customer needs. The focus is on products that can be manufactured and sold in large quantities.

Subsequently, Panasonic repeatedly used this strategy to expand product lines and expand its business scope.

Among them, the decision to produce large quantities of electric iron has also proved the effectiveness of this strategy from one aspect, and more importantly, has verified the value of "tap water philosophy".

When the company decided to produce large quantities of inexpensive iron, the question Panasonic was faced with was whether the 10 thousand production could be sold in the month. At a loss, Konosuke Matsushita thought that Panasonic should return to the original starting point of producing electric iron to consider the problem.

The reason why companies worry about ironing is that the price is expensive.

"Such a convenient thing, but because the price is high, many people who want to use it can not afford it.

Therefore, as long as the price is reduced, many people will buy it.

If a lot of people want to buy, at first glance, it seems that there are tens of thousands of products per month, but they can actually be sold, and the prerequisite is to reduce prices so that everyone can afford them.

Konosuke Matsushita's decision to produce 10 thousand electric irons was in fact contrary to the practice of most of the enterprises at that time.

At that time, in general, as long as the existing market was not big enough, enterprises would never embark on mass production, even if they had excellent products on hand. Generally, such risks were too great.

Therefore, Panasonic's bold decision and product sales success is not only the success of Konosuke Matsushita's "running water philosophy" business wisdom, more importantly, the starting point of his decision is to see more ordinary people hope to buy more advanced electrical products demand.