Rebirth of the World’s Richest Man
Chapter 1978: The cruelty of market competition
Chapter 1978 Cruel Market Competition
Lao Liu sighed and said, "I heard the news from Lao Jiang on Furongjiang Road.
They said that the price of Hualian Computer is not an end, and that the price may have to be reduced.
As for the size of the price cut, I don’t know, but at least I will cut the price once a year ago. "
Furongjiang Road, this is the electronic street of the magic city, in the early 90s. Modu sent a part of its officials to Zhongguancun, the capital of Beijing, to study and exchange.
Since then, a group of Zhongguancun enterprises thought of setting up branches in Magic Capital, and the first one would think of "Magic Capital Changning".
In 1992, Furongjiang Road established a "Science and Technology Street" similar to the "Electronic Street" of Zhongguancun.
They are just a second-hand electronics market here, and they are not comparable to those over there.
The news is not well informed.
"Any price cut? Now I can't stand it anymore." Lao Zhang is full of bitterness. Now the price of computers has reached the tipping point of many small computer manufacturers.
Distributors like them can still sell if they don’t increase the price.
Of course, if there is no price increase, the daily rent cost, utility cost, transportation and labor cost are equivalent to losing money.
However, it can barely survive. If it can be processed during this time, there will be no problem.
The key to the problem is that if Hualian Computer cuts prices again, they will really need to lose money.
This price war is really burning money, and where ordinary dealers like them can burn, they are now ready to find factories and let the factories give profits.
"When will the price be reduced, is there any definite news?" Lao Zhang asked.
Old Liu shook his head. Where can there be any definite news about this kind of thing? A little gossip is pretty good.
"This Hualian computer really doesn't let people live. Look at it. As soon as the price of Hualian computer is reduced, it will not be used for a week. Even if you think about the computer, the price will also be reduced.
Fighting between two big companies, it is the people of small companies like us who are suffering. "
Lao Zhang nodded and cursed.
At the same time, in the science and technology street on the Furongjiang Road, the discussion about this matter is louder.
After all, most of them here rely on computers to survive.
"Hualian Computer and Lianxiang Computer continue to play like this, not to mention those companies.
That is, those of us who rely on assembling computers can't survive.
Assembled, these parts are more expensive than the whole machine. "
Some people complained that, normally, the price they get is cheaper, and the assembled computer, although there is no after-sale service.
But it can be a little cheaper. After all, there is no manufacturer to make money, and there is no shipping.
But now the whole Hualian computer is available after sale, with brand blessing, and it is cheaper than the computer you assembled. How can you play it?
This time is not for later generations. Everyone wants a computer with a variety of special configurations. Some are used for playing games, and some are used for office.
The focus is also different. Sometimes there is a market for assembled computers, but what kind of games are computers at this time?
What is a game?
Everyone is used for office work. Of course, they tend to use other people’s computers, brands, and after-sales.
"For things that can't be helped, Hualian Computer was ambitious from the beginning. Everyone knows that Huaqing Building stands on the bank of the Huangpu River, overlooking the entire magic capital.
Of course they want the entire computer market. How can you be willing to be a small brand. "
"Yes, this Hualian Computer wanted to compete with Lianxiang Computer for the market from the beginning. Everyone can see this."
Everyone was talking about it, many of them were already thinking about it, and they finished handling the things in their hands, and then went to Hualian Computer to buy the goods.
All of them can't stand the rhythm of price cuts. They continue to follow the small manufacturers for fear of losing their money.
In fact, these distributors are relatively good, and they can change to another computer brand, but the most uncomfortable ones are those small computer brands.
They really have no choice. With this price cut, they will lose everything.
Jiang Xiaobai also knows this, but the market is like this. This is a process of elimination. It has never been warm, but a very cruel one.
I don’t know how many companies will be eliminated in this process.
In the end, a few brands can survive and become truly big companies.
In this process, I don’t know how many companies will go bankrupt, how many people who depend on them will be unemployed, and how many families will be affected.
But this is the environment, even if there is no Hualian computer, there will be even thinking computers.
The addition of Hualian Computer only made this competition even more intense.
makes the contradiction more acute.
Lianxiang, the computer’s response was faster than everyone thought.
After receiving the news of Hualian Computer’s price cut, Mr. Liu convened a meeting immediately.
Lianxiang computers still occupy a large market share, at least much larger than Hualian Computer.
has a lot of initiative, but this initiative has slowly begun to level off in the price cuts of Hualian Computer.
Although even thinking about the computer’s response quickly, the market is slowly being eaten away.
Even the senior executives who think about computers have seen this. At the beginning, Hualian Computer Company was an empty shelf, although the Huaqing Holding Group was well-capitalized behind it.
But everyone didn’t take it seriously. After all, a strong business capital is an advantage, but it is not a decisive factor.
But since this period of time, Hualian Computer has provoked wars time and time again.
The price is cut again within two months, which has to make everyone doubt that Hualian Computer's real purpose.
"I heard that Hualian Computer has been moving continuously since the beginning of the year. It has acquired many manufacturers, and not only domestic.
I have also purchased a lot in foreign countries. I suspect that the degree of self-produced parts of Hualian Computer is already very high. Otherwise, Hualian Computer will not reduce prices again and again.
After all, if we talk about price wars, we have an advantage even if we think about it. "
The head of the marketing department spoke.
General Liu nodded. This is something to worry about. How long is Hualian Computer? Is it so strong in research and development capabilities?
At first, he thought, Hualian Computer would invest money again, and it would take several years to make a breakthrough in self-produced parts.
But after only a year or so, the Hualian computer began to be aggressive.
"I think Hualian Computer is squeezing the profits of the distributors. I heard that the distribution of Hualian Computer is poor. The price of getting the goods from Hualian Computer is not low. Selling at this price will not make much money..." Some people also put forward different opinions.
(End of this chapter)
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