120% Speed Then 95% Quality

“For a newly-established enterprise, rapid expansion is the first priority. In a primitive market like China, a company that is not able to swiftly seize its territory will be crushed by others in no time. This is like playing a video game. Without a controlled territory, a company will have no chance to survive. This is the strategy I follow. When Huazhu was just established, our first strategy was ‘120% speed and 80% quality,’ since we could not achieve ‘120% speed and 95% quality.’ Territory seizure comes first. The second strategy is to target regional centres and seize territory around first and second tier cities, including second tier cities that are nodes to first tier cities. After territory seizure is achieved, we change the strategy to ‘95% speed and 95% quality.’”

“When an enterprise plateaus, the first priority becomes making the company stronger. Once you finish territory seizure, you should work hard to improve quality. This is an effective formula in our times. As a company reaches the sustainable growth stage, making it stronger is vital.”