Extraordinary Genius

Chapter 1425 The Price Is the Weapon

"President Feng, as you expected, we were indeed accused."

Speaking of Lianxiang being accused, Liu Chuanzhi still had a happy expression on his face, and he didn't seem to be worried at all.

Because Feng Yu had reminded him a long time ago that launching this cheap laptop and bringing it into the era of less than $500 will inevitably arouse strong dissatisfaction from those manufacturers. They are very likely to use unfair competition and dumping. and other charges against Lianxiang Group.

This time, Feng Yu guessed it again. Those companies really sued Lianxiang Group on these two charges.

Dumping and unfair competition are all based on Lianxiang Group's sales at a price below cost. In fact, Lianxiang Group's production cost is less than 400 US dollars.

Therefore, these two accusations are completely ignored by the Lianxiang Group. As long as they throw out the evidence of production costs, they can eliminate these groundless accusations to nothing.

As for why the evidence is not directly thrown out now, of course, it is to let this matter continue to ferment. This is also equivalent to a kind of publicity for Lianxiang Group, and at the same time, it can let other companies enter the low-cost notebook market not so early, so that they have enough time to completely occupy this market.

"I see. By the way, make sure we're not selling below cost in any area?"

"No, it's just that in some areas, due to the high cost of tariffs, transportation, and publicity, our profit may be less than ten dollars, but it is definitely not a discounted sale." Liu Chuanzhi said with certainty.

"That's it. As for legal matters, let the professionals handle it. Laptops shouldn't be so expensive. It shouldn't be a luxury, it should be like a common household item in people's lives. Electrical appliances."

"At the beginning, mobile phones were sold in the country for 20,000 to 30,000 yuan, and if you have money, you may not be able to buy them. At the beginning, bp phones were also several thousand in size, and the number was also very small."

"But what about now? The bp phone has become history and has been eliminated. The mobile phone has changed from tens of thousands to thousands, and then to the ultra-low price of 399 yuan for the wind and rain mobile phone, which has become the consumption of the vast majority of people. up-to-date products.”

"I don't dare to say that in rural areas, but in cities, almost every household has a mobile phone. In some families, everyone has a mobile phone, and some people have more than one mobile phone. This is better than some household appliances."

"As for computers, desktop computers have gone from tens of thousands to 10,000 yuan, to five or six thousand, or even below five thousand. The price has also been decreasing, but the performance has been going up. , the price reduction is not so big, we Lianxiang Group, even if it is a pioneer in price reduction sales."

Hearing this, Liu Chuanzhi also smiled and said: "Isn't it true, every time we cut prices, it caused the market to follow suit. And with each price cut, our sales volume and profits continued to increase."

Every price cut is carefully calculated. It is impossible to increase sales, but as a result, profits have decreased, so why do you cut prices, do you self-harm?

Just like this cheap laptop, many of these consumers are reluctant to buy a laptop that costs seven or eight thousand, even five or six thousand.

But when they found out that a laptop costs only over 3,000, they couldn't help but be tempted. These people are equivalent to new consumers, which do not overlap with the original market.

Therefore, Lianxiang Group can increase sales and profits at the same time, not to blindly reduce prices.

Just like now, the laptops of Lianxiang Group have several grades such as more than 10,000 yuan, seven or eight thousand, five or six thousand, etc., which are aimed at different consumer groups.

Price, in the hands of Lianxiang Group, has become a weapon, a weapon that crowds out other competitors. The same configuration, our price is lower, so that others have to cut prices.

However, Lianxiang Group's production costs are lower, so profits will not be reduced too much, while other manufacturers, especially those with low production capacity and unable to reduce the cost of a single product, will be slowly squeezed out.

For example, in the North American market at this time, the sales of notebook computers of companies such as Suoni, Songxia, and Dongzhi continued to decline. After the Lianxiang Group cut prices, Huipu, Daier and other companies could follow the price cuts, and IBM and Fruit Company continued to take the high-end route. , but also launched a notebook with a lower price, but these manufacturers in the island country were severely hit.

There are also some low-strength manufacturers who have directly withdrawn from the North American market. They are the kind of companies that buy spare parts and assemble them. They belong to the last-class enterprises. However, this last-class company is not good in terms of price and service. destined to be eliminated by the market.

This kind of means of crowding out other competitors with price, the best one used by Huaxia is Galanz. The world's largest microwave oven production and sales company, the leader, and now their air-conditioning business is also operating in this way.

The 35% market share of microwave ovens belongs to Galanz. Except for North America and Central Asia, Galanz is the leader. The price standards of various microwave ovens are also set by Galanz.

They let the microwave oven from the era of a few thousand dollars to enter the era of hundreds of dollars now. At the same time, the largest microwave oven manufacturing factory in the world is also owned by Galanz. They also manufacture for many microwave oven companies. Because of their huge output, the cost of OEM is lower than that of many brands in the past. the lifeblood of other companies.

Now the air conditioners in Galanz, they also do the same.

Fengyu Electronics has developed many related technologies before, and they have also invested in technology in exchange for the shares of Galanz. However, Galanz does have the final say. Taihua Holdings is only a shareholding company and a minority shareholder.

The model of Galanz has been learned by many foreign companies, but none of them have been able to imitate successfully. The PC business of Lianxiang Group is similar to the Galanz model. It also uses the weapon of price to occupy the Chinese market, so as to rush out of the country and go to the world.

Step by step, it has become a leader in Asia, a leader in Eastern Europe, a leader in Africa, etc., and now North America, South America, Western Europe and other regions are their main development targets.

Liu Chuanzhi said at the company's conference that what Galanz can do, he can do as much as he thinks, and even better.

Lianxiang Group did just that. When its scale reached a certain level, it would use the weapon of price to squeeze out companies whose production capacity was half of its own.

After a few times, some wandering skirmishers were killed.

Every time the price is set, it is carefully thought out, and they want to make the price a solid barrier for the industry. They could do it before, and this time, they can do it too!

...

ps: It hurts to increase coins every day. The fourth one can't get a cent. You can go to the great god to spend the coins, and come to the fourth place to use the normal coins? The fourth is kneeling for you (to be continued.)

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