Chapter 470 Threats From Within the Country

After Chen Changliu praised the performance of the African branch, he changed his tone and said:

"Although you have completed the goals set by the company in the first half of the year, we have to find problems from the data. Although our sales have increased, our market share has indeed decreased.

In May, our previous market share reached 25%. Although sales continued to rise in June, our market share was only 22%.

This shows that Africa's consumption power is improving, and more consumers are buying mobile phones, but our sales ratio is declining. "

Chen Yanfeng and Li Peter looked at each other, and Chen Yanfeng, who was in charge of operations, said:

"Mr. Chen, we have also discovered this. After our investigation, the reason is that many domestic manufacturers have entered Africa. Many manufacturers' costs are actually higher than ours, but they have lowered their prices to the same level as ours. , someone has even sold it for a lower price than us.

This is completely a win-win strategy. According to our judgment, they are planning to occupy a lot of market share at the expense of profits.

If it weren't for the brand reputation we built before, the sales ratio might have declined faster. After all, cost-effectiveness is the best marketing method in this land.

We had done market research long ago and were preparing to send it to the headquarters, but unexpectedly something happened. "

Chen Yanfeng said and gave Chen Changliu a piece of information. Chen Changliu read it and nodded. He had already expected this. These guys were not only attacking him at home, but also came to Africa, just to get a piece of the pie.

These people don't dare to cut prices in China, but they dare to do so in Africa, thinking of using their abundant funds to consume Huazhongjia Technology Co., Ltd.

This is simply killing two birds with one stone. It not only seizes the market, but also uses more abundant funds to attack flower growers.

Chen Changliu was speechless. His previous promise to Peter Li had the effect of killing two birds with one stone, but before it was implemented, others had already begun to show off their power.

Chen Changliu fell into deep thought. This situation is easy to explain, but not easy to explain.

The reason why the Pangu series of the Hui tribe that I used to grow my own flowers has suddenly emerged is because of its low price.

And now that others are using this trick to break the situation, the best way to break the situation is also this trick.

As Chen Yanfeng said, under economic conditions like Africa, low prices are the most practical.

The current low-end version of the Meizu Pangu series has been reduced to 228 yuan per unit, and the profit has dropped to about 50 yuan.

But now some competitors have lowered the price to 208 yuan. Chen Changliu knows that this price is basically not profitable for these manufacturers, and they may even lose money.

Because the wafer prices they got were not as low as Chen Changliu's.

As far as he knows, the kits sold by MediaTek to these manufacturers should cost about 150 yuan.

And because I signed a gambling agreement with MediaTek, the price is much lower.

The original agreement was:

The order for 10 million wafers has been completed, and the price of the set is set at 120 yuan.

For every additional RMB 1 million completed, the price of the additional set will be reduced by RMB 3.

If only 8 million is completed, the package price will be 130 yuan. If it is less than 5 million, the package price will be 140 yuan.

Thinking of this, he took out his phone and called Zhou Liming.

"Lao Zhou, how many mobile phone wafers have we and MediaTek ordered?"

Zhou Liming blurted out without even thinking:

“I placed the last batch of 1.5 million orders a few days ago. The gambling agreement we signed before has been completed. The order prices we placed in the remaining three months can save a lot of money... .”

After hanging up the phone, Chen Changliu started writing and drawing on paper.

If an order for 5 million wafers is placed at once, according to the gambling agreement, each wafer can be reduced by 15 yuan, which becomes 105 yuan, and the cost of each mobile phone can be reduced by 15 yuan.

Chen Changliu wrote and calculated, and he finally understood why the African mobile phone king of the original time and space accurately calculated the profit of a single machine to about 10 yuan.

It’s not bad, what’s happening here is purely a price war!

After having the manuscript in mind, Chen Changliu was not in a hurry to make a decision. Instead, he looked at the people who had been waiting for him quietly and said with a smile:

"What plan do you have for this current situation? Don't tell me that you don't have a plan, otherwise I will scold you."

Chen Yanfeng and others did not laugh at Chen Changliu's smile. They knew Chen Changliu's style of doing things very well, that is, you can ask questions and point out problems, but at the same time you must have a solution, no matter whether this method is feasible or not.

Of course, if you are sneaky and sneaky, every time you come up with a solution, it will be useless. If you try it a few more times, you will be on the list.

This style has now become one of the styles of managers at all levels of the company.

"Mr. Chen, we did discuss it and this is our solution!"

After saying that, he handed another document to Chen Changliu, and then continued:

“There are only two things we can and can do about the decline in market share caused by competitors’ price wars.

First, the price keeps up!

But keeping up with prices will inevitably lead to our profit margins getting thinner and thinner, so we have to find ways to reduce product costs.

Of course, according to Mr. Chen's requirements, we cannot make any moves on product quality, so we think the only thing we can do now is to build our assembly plant in Africa.

We take advantage of Africa's cheap land and cheap labor to assemble our products.

You must know that a large number of people in Africa are unemployed, and the monthly salary of a larger part of the people is more than 100. It can be said that the labor cost is only about 1/7 of that of domestic electronics factories.

Of course, due to the education and racial characteristics of Africans, their efficiency is definitely not as efficient as our domestic industrial workers.

But even with a 50% discount, we can save a lot of manual assembly costs.

And more importantly, it can help some African countries solve their employment problems and at the same time bring them financial revenue.

It allows us to have more positive relationships with these governments!

Second, effectively fulfill corporate social responsibilities, enhance and build brand reputation!

We have discussed this point. In Africa, too many people live below the subsistence line, without even a meal.

Therefore, we can spend a small amount of money to provide relief to poor people in some countries from time to time.

Such a way will not only help the government, but more importantly, our brand reputation will become better and better..."

Chen Yanfeng elaborated a lot on this aspect and spent half an hour analyzing it in detail, which made Chen Changliu couldn't help but nod.

PS: typos should be corrected first and then corrected.