The Boao Forum for Asia 2013 took place in Hainan. Gao Jifan, chairman of Trina Solar, shared his insights during the event, emphasizing that the key to transforming from a small business into a strong and successful one lies in building core competitiveness early on. He pointed out that while small companies have inherent advantages, these can be lost as they grow larger. The challenge is how to combine the resource-acquisition strength of large enterprises with the agility and focus of smaller ones, which is essential for becoming a truly outstanding company.
Gao also discussed the development of China's photovoltaic industry, stating that it was not initially driven by government policies. Before 2005, no official department paid much attention to the sector. Instead, it was private entrepreneurs and foreign capital markets that played a major role in its growth. However, after 2006, local governments began to take more interest, especially in strategic emerging industries. He noted that while self-development was the foundation, the industry later experienced overheating due to increased government support.
During the forum, Gao reflected on the evolution of the global solar industry. In 2000, several top photovoltaic companies were among the world’s top 500. By 2010, many had disappeared, and some former leaders faced bankruptcy or restructuring. He asked whether there is a clear path and key to growing from small to strong. His answer: having core competitiveness when young and maintaining the strengths of small businesses even at scale.
He cited a Japanese company as an example—operating in the solar industry for over 20 years. Even during periods of industry losses, this company remained profitable. Its success came from a unique management model known as "amoeba management," where the company is divided into thousands of small, focused groups. These small units are highly flexible and efficient, allowing the company to adapt quickly to market changes.
In contrast, large companies like BP often struggle with slow decision-making. Gao mentioned that even simple decisions can take months to approve, and by the time they are executed, the original plan may no longer be relevant. This highlights the importance of balancing the strengths of both large and small organizations.
Overall, Gao emphasized that true excellence comes from combining the best of both worlds—leveraging the resources of large enterprises while retaining the agility and innovation of smaller ones.
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