You Have to Be Bold
There is a question always make me confused which is why big companies always make layoff decisions? Although profits are still steady and lucrative, we can find that there are a lot of news reports that companies have announced layoffs. After reading the article named: Cisco’s CEO on staying ahead of technology shifts, I understand that it is a strategy of staying on ahead of technology shifts. Also, if companies miss the market transition which can cause numerous serious issues, including unable to meet customer needs, Lose the best opportunity in technical competition, etc.
The transformation of Pixar Studios is a perfect example of how an industry must adapt to market and think very differently about the future of information technology. When Steven Jobs bought it from the studio of Lucas, he wanted this company to be able to invent a computer which can process images. Pixar has created a number of powerful image processing compute indeed, but the price is very expensive for the customer, only a few hospitals and the U.S. military bought some of them. Pixar sold only 120 computers in 1988 and faced the bankruptcy issues. Although this company including 120 people, there are only 5-6 people can take charge of processing images. Initially, their task was to "create some animated short films in order to demonstrate how powerful their 3D image processing computers are." Unexpectedly, they produced a 5 minutes short animated movie named tin soldier which won the best short story of Oscar in April 1989. After that, they shifted their investments in short animated movies. After two years filming, Pixar released their first digital animation film named "Toy Story" which hit the box office record, $2900, on the first weekend. Driven by Jobs, Pixar quickly listed in the IPO and make a transition to become a real digital animation studio. Jobs once again back to the public view by Pixar, he holds Pixar shares worth $1 billion 500 million. Just like Paul Leinwand said, the company should figure out what they are really good at and then developing those capabilities. If Pixar keeps focusing on the image processing field and lack the courage to find what they really good at, they will lose the chance to get into the animated film field.
On the other hand, GE is also a great inspiration to many companies which have to face today's rapid changes of Internet transformation and innovation. Simply, strategists of GE mainly focus on two points, first, they cut business in order to decrease the resource consumption even though these industries are developing over a hundred years. After that, they lay off useless leading teams and simplify the construction of the company in order to improve the efficiency of organisational operation.
From my perspective, a company should not involve too many fields and they need to change its resource distributions from market reflection correctly. Therefore, enterprises should base on their actual situation, in particular the ability to withstand risks to develop a model of transition.