The “saddle-shaped” curve is a “dilemma” that occurs in the cyclical industry, and every enterprise wants to stay away for fear. After more than 10 years of strategic transformation, Weichai Power has taken the lead in overcoming the dilemma. How does Tan Xuguang achieve that?
Tan Xuguang's strategic layout
1998-2004: Weichai Power started high-power engine business and entered the international capital market;
2005-2007: Weichai realized the transformation from engine to powertrain and successfully built the powertrain industry chain;
2009-2012: Weichai completed the marine engine layout, especially non-road engine layout, and built the hydraulic system industry chain;
2013-2016: Weichai formed the modern intelligent logistics industry chain;
2017-now: Weichai has completed the diversified ecological structure.
Now the revenue of Weichai Power has increased significantly and the business structure is more balanced. The proportion of the dominant engine revenue has reduced to 20%, and the proportion of overseas revenue has increased to above 40%. Weichai Power has succeeded in overcoming the dilemma of the cyclical industry.