Challenging Involution and Navigating Economic Cycles—A New Year Message from Ji Yilong, Chairman of STEP
2024-02-10
The strong remain strong, and life goes on endlessly. Although the macroeconomy faces short-term challenges, great companies—after weathering economic cycles—always emerge even stronger. This is the fundamental premise underlying all of STEP strategies.
The “sage of management” in Japan, Kazuo Inamori, pointed out that, A crisis is an opportunity for growth. This is by no means a reason for business operators to adopt a passive or pessimistic attitude. In times of economic downturn, companies actually have the perfect opportunity to strengthen their foundations and build up energy for the next leap forward. The more severe the downturn, the more crucial it is to face it with a positive and upbeat mindset—uniting all employees, engaging in mutual learning and refinement, pooling wisdom and ideas, and giving their utmost effort to break through the difficulties.
The essence of involution is homogeneous competition. An effective way to break through homogeneous competition is... Create a differentiated advantage. Right now, everyone is talking about “involution”—the fierce price wars that no one wants to face yet find themselves confronted with every single day. While involution is extremely intense and undeniably a negative phenomenon, it also carries a silver lining. We must not only recognize the positive value of this involution—after all, it’s precisely through competition that we’ve built our competitiveness—but also remain confident and strategic, using this challenging environment as an opportunity to forge even stronger competitive edges and ultimately win the market.
By studying the past, we can understand the present. Looking back on STEP’ 29-year entrepreneurial journey, we have consistently adhered to two differentiated approaches aimed at forging a unique competitive edge:
One, Do what others wouldn't think of. We introduced CAN bus communication technology—originally from the automotive industry—into the elevator control system across industries. With a relentless, dogged spirit and by driving technological innovation, we’ve become a legend in the elevator industry.
II. Do what others can't do. For example, we provide specialized solutions tailored to specific sub-industries—for instance, a virtually indestructible variable-frequency drive for the pump industry, a revolutionary laser-marking solution for rubber tires that has transformed mold-making processes in the rubber tire industry over the past 135 years, and the development of industry standards for rubber tire robots.
Maintaining differentiated technological innovation will become STEP’s DNA and be continuously passed down.
In the future, we will continue to adhere to a differentiated approach, building market competitiveness in two key areas: First, unparalleled cost-effectiveness; second, continuously seeking differentiation in applications. Differentiation is a means—a key enabler of exceptional cost-effectiveness—and, more importantly, a powerful weapon for breaking the cycle of cutthroat competition and navigating economic cycles.
We’ve always firmly believed that only by weathering storms can we see the rainbow.
In the Year of Jia Chen, the Year of the Dragon, let us together uphold our corporate spirit—“Open to the world, strive for excellence, and always aim for first”—stay true to our original aspirations, forge ahead with determination, unite as one, and continue our relentless efforts, enabling STEP to grow into a century-old enterprise that endures through the ages.
— Ji Yi, Chairman of STEP
February 10, 2024
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