To achieve long-term success, a business must adapt to a changing world. The transformation story of construction machinery giant XCMG began 74 years ago, from a small iron factory to a world-leading enterprise. XCMG currently ranks 7th in the global construction machinery industry, and it’s about time to take one step forward.
“It’s our strategic goal to regain position as world’s top 5 by 2020. After that, XCMG’s goal will be world’s top 3 by 2025, the same year as the first step of ‘Made in China 2025’ policy comes to a perfect end,” shared Group Chairman Mr. Wang Min with great confidence. To implement the ambitious business initiative, the company is planning precisely and executing every step of the plan with devotion. Wang emphasized, "The pursuit of quality, efficiency, scale of business, as well as sustainability are crucial for the future development of XCMG in the upcoming 5 years.”
Going Global Strategy
The Going Global Strategy to deliver high-quality products and services to customers explains XCMG’s growing global presence. Instead of focusing on a short-term exporting surge, XCMG strives to establish a strategic global network, strengthening its long-term competitiveness with a solid foundation. “The strategy must consider innovation, production, sales and spare parts services,” said Wang.
It is expected that the 5 major international centers of China, Germany, America, Brazil and India will continue to master the technology advantages in each geographic location in the future. In addition to innovation, XCMG will work closely and collaborate with dealers to achieve win-win outcomes.
Solving the Core Technical Problems
Renowned for its pioneering spirit, XCMG’s successful self-developed machines includes the world’s largest crawler crane XGC88000 and leading excavator model XE4000. To work its way to the top 3, XCMG strives to create more values.
“The obstacle that we are facing, from being fully acknowledged as a high-end brand, is the remaining 10% unsolved technical problems. The first step is to have technological breakthroughs, followed by management and production structure enhancement. In 2012, XCMG’s income reached 100 billion Yuan, our goal is to reach over 200 billion Yuan by the end of ‘Thirteenth Five-Year’ Plan,” said Wang.
Implementing Market-driven R &D Process
XCMG sees R &D as a market-driven process for the benefit of customers. Earlier this year, XCMG celebrated the 1-year launch of XCMG-Cloud, an inclusive industrial cloud platform with comprehensive industry data built with Alibaba Group. The platform carries out functions such as real-time monitoring and user’s feedback collection, allowing XCMG to respond quickly to market trend.
Furthermore, XCMG will explore more opportunities in the era of Internet+. Intelligent manufacturing, for example, will gradually improve automation, management and computerized systems; hence delivering customized products to each customer at lower prices.
Making It to Top 3
It might be a long and winding road to put vision into action, yet XCMG is prepared for any challenges ahead. "Working hand in hand, we shall win the world’s respect and make XCMG the top of the industry,” Wang encouraged the XCMG family.