Rebirth of the Industrial Tycoon

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In the meeting room of Gufeng Group, Huang Baifa summoned the group's leading cadres to discuss countermeasures.

After briefly narrating the price reduction of Fukang agricultural machinery, Huang Baifa said: "This is the situation. Today's meeting is mainly to discuss whether our group should continue to invest in the rear axle assembly project."

Everyone bowed their heads, and no one spoke. Huang Baifa had no choice but to name him, "Manager Wang, you are in charge of research and development, please talk about it first!"

The manager surnamed Wang coughed and said, "The rear axle assembly of agricultural vehicles is a new project for us, and I personally participated in the entire research and development process.

In order to develop the rear axle assembly, the group has invested more than 5 million yuan. The scientific researchers worked overtime and overcame a lot of difficulties. Finally, phased results were achieved, and the first generation of rear axle assembly was successfully developed. to make.

Now our scientific researchers have begun to develop the second-generation rear axle assembly. If the investment in research and development is stopped, the second-generation rear axle assembly will definitely not be possible.

More importantly, all the technical accumulation we had in developing the first-generation rear axle assembly was wasted. The previous five million investment was wasted. "

Manager Wang is in charge of research and development, and naturally does not want the project to be cut off.

Someone next to him said: "But this project can no longer bring profits to the group. The reason why the group was willing to invest in the rear axle assembly project before is that this project can bring huge profits to the group.

Now Fukang Agricultural Machinery has reduced the price of the first-generation rear axle assembly by 30%, which is equivalent to selling it at the cost price. At such a price, there is no profit at all, and it can only be regarded as capital preservation.

More importantly, the second-generation rear axle assembly of Fukang Agricultural Machinery has also been sold at a 20% price reduction. Even if we successfully developed the second-generation rear axle assembly, it is no longer profitable.

Continuing to invest in this project is equivalent to wasting millions of scientific research funds, so I think this project should be suspended immediately and stop losses in time! "

With these two people throwing bricks and attracting jade, everyone expressed their opinions one after another.

"This project has cost five million, but it has not brought profits to the group. If it continues, it will burn money. I think this project should be terminated." Someone said.

"so far,

The research and development of the rear axle assembly is indeed burning money. This is mainly because our technology is not good enough. Once our technology is improved and reaches the domestic advanced level, it will definitely be profitable. ' another countered.

"Then we have to cross the hurdle of Fukang Agricultural Machinery first. The agricultural tricycle is made by Fukang Agricultural Machinery. They have been doing the rear axle assembly for some years, and they have richer technology and experience than us."

"Yeah, this time, the price reduction of Fukang agricultural machinery is clearly aimed at us, so that our initial investment of five million yuan has all been lost."

"So as long as we catch up with the technology of Fukang Agricultural Machinery, we don't have to worry about getting stuck again. As far as I know, the rear axle assembly that Fukang Agricultural Machinery is now selling is only one generation ahead of us. We work hard , can still catch up.”

"Really? But according to the information I have, the latest agricultural vehicle of Fukang Agricultural Machinery is already using the latest generation rear axle assembly, which has much better performance than the second generation rear axle assembly they are selling now. And I suspect, they have a better rear axle assembly."

"Fukang Agricultural Machinery has developed the rear axle assembly for so many years, and no one knows how far the technology of Fukang Agricultural Machinery has reached. If their technology is really much ahead of ours, we will develop a new generation of products, and they will reduce the price of a new generation of products. It's always us who suffer at times."

After a long discussion, everyone was roughly divided into two factions.

One is to continue research and development. This faction believes that since the five million R\u0026D expenses have been smashed down, if it stops now, all the previous R\u0026D investment will be wasted.

The other faction believes that continuing research and development is losing money. Even if the research and development is successful and a new rear axle assembly is made, once the price of Fukang agricultural machinery is reduced, Gufeng Group will still not be able to make profits. Therefore, it should be stopped immediately to avoid greater losses in the future.

After arguing for a long time, they finally turned their attention to Huang Baifa, and he had to make the final decision on this matter.

At this time, Huang Baifa had a plan in mind.

I saw Huang Baifa sighed and said, "This rear axle assembly project, the R\u0026D department has indeed made great efforts and achieved fruitful results. It can be regarded as a successful completion of the task delivered by the group."

Huang Baifa's remarks are equivalent to affirming the contribution of the R\u0026D department first, and making it clear that the failure of the project is not the problem of the R\u0026D department.

Then he changed his voice and continued: "But this project has not achieved the expected benefits. I think this is mainly caused by the suppression of competitors, not the mistakes of the group's decision-making."

Huang Baifa's words directly threw the pot to Fukang Agricultural Machinery.

It has to be said that Huang Baifa does have some means. When he encounters setbacks, finding a foreign enemy to take the blame will not only relieve his subordinates, but also promote internal unity.

Huang Baifa continued: "This time, the competitor's suppression of us came very suddenly for us, but I guess the opponent must have made sufficient preparations, so he made a move.

The so-called “knowing ourselves and knowing our enemies” means that in a hundred battles, we will not be imperiled. Now we cannot control the situation of our opponents, but our opponents have come prepared. If we continue, the situation we will face will definitely be very passive.

Our group is also building a tire production line. Next, the focus of the group will also be on the tire business. So in order to avoid distraction, I think the development of the rear axle assembly can be suspended first! "

These few words of Huang Baifa are like a final decision, and it is determined that Gufeng Group will suspend the research and development of the rear axle assembly.

...

What Li Weidong used was entirely Yang Conspiracy. Even though Huang Baifa had seen through Li Weidong's intentions, he had no way to deal with it.

On the surface, it seems that Li Weidong is fighting a price war, reducing the rear axle assembly to the cost price, and everyone should not make money. It is equivalent to killing a thousand enemies and losing eight hundred.

But in fact, Beverly Agricultural Machinery uses this method to strangle future competitors in the cradle.

Once a competitor falls, Fukang Agricultural Machinery can continue to monopolize the market for rear axle assemblies.

This move was indeed very effective. Huang Baifa saw that it was unprofitable, so he stopped the research and development of the rear axle assembly.

As long as you can't make it, I will sell it at a high price and make a lot of money; and once you make it, I will immediately lower the price to run on you, making your research and development in vain. This is the routine used by companies in developed countries.

When a product with technological content is monopolized by a developed country enterprise, it will definitely sell for a high price.

High prices mean high profits, and such high profits will also attract other companies to enter this field.

It is precisely because the profits are high enough that companies that want to enter this field are willing to spend a lot of money on R\u0026D.

Of course, the original monopoly will not sit idly by the emergence of competitors, so when competitors achieve certain results in R\u0026D, the monopoly will decisively cut prices.

In this way, the profit of the product will also be greatly reduced. Those companies that spend money on research and development find that their profits are not as high as they used to be, and it is better to buy them directly.

And once the research and development is stopped, the road to higher-end will be cut off, and you can only continue to spend money to buy it in the future.

Developed countries use this trick to kill many R\u0026D enterprises in their infancy.

For example, some South American countries, as well as some Central and Eastern European countries, are not poor countries, and the level of compulsory education is relatively high, and they originally had certain research and development capabilities.

But in the end, the scientific research-oriented enterprises in these countries have all been defeated by this trick in the process of growth.

Brazil, Argentina and Chile in South America, Serbia, Poland, Belarus and other countries in Europe, all have good industrial systems. If you look closely, their industrial categories are quite complete, and they basically have all the industries they should have.

The education systems of these countries are also very complete, from compulsory education to higher education, there is no shortage of them, and they are capable of providing the country with corresponding talents.

However, the manufacturing industries of these countries are always second-rate in the world, and it is difficult to find a Fortune 500 manufacturing company in these countries.

The reason for this is that companies in these countries have never been able to move to the high end. Every time they start R\u0026D, they will be suppressed by companies in developed countries.

Once the price of a product is reduced, it can not only seize the market, but also make your R\u0026D investment go to waste.

In the process of growth, Chinese enterprises often encounter the same routine.

Whenever Chinese companies are about to make breakthroughs in research and development, foreign companies will inevitably start to cut prices.

However, this routine is often ineffective for Chinese companies.

Because the research and development of Chinese companies is different from the research and development of foreign companies. The research and development of foreign companies is mainly for the purpose of obtaining economic benefits, while the research and development of Chinese companies is mainly for strategic considerations.

For the sake of economic interests, as long as they can't make money, companies are not willing to spend money on R\u0026D.

For strategic considerations, it doesn't matter whether you make money or not. First of all, you must make the product, and don't get stuck.

Taking the lithography machine as an example, the amsl 28-nanometer lithography machine in the Netherlands is not only expensive, but also has to be paid in full in advance. Even if the money is paid, it will take a long time to pick up the goods. If Chinese companies want to buy, they have to ask others to sell.

Later, a breakthrough was made in the 28-nanometer lithography machine of Microelectronics, and China could manufacture 28-nanometer lithography machines by itself, so amsl immediately announced a price reduction for 28-nanometer lithography machines.

Moreover, the full payment in advance is not charged, and there is no need to wait for delivery. Then, under the pretense of showing favor to China, it is actually suppressing domestic lithography machines.

Of course, amsl hopes that China's lithography machine companies will stay at the 28-nanometer stage and not continue to improve their technology, so that amsl can continue to monopolize the higher-end lithography machine market.

Normally, this trick will work. As a company, it spends a lot of money to develop products, but it can't make a profit, or even lose money. No one is willing to continue to do deeper research and development.

In fact, this is indeed the case. After the price reduction of the amsl 28-nanometer lithography machine, it has indeed seized a large part of the market, causing hundreds of millions of losses to Shanghai Microelectronics.

If you switch to another company and develop new products but lose hundreds of millions, you will definitely not continue to do so.

But on the microelectronics is different, they did not stop the pace of research and development.

This is not because of the head iron of Shanghai Microelectronics, but because Shanghai Microelectronics is a state-owned enterprise.

Moreover, Shanghai Microelectronics is not fighting alone. Behind Shanghai Microelectronics are the National Integrated Circuit Industry Base, the National Semiconductor Industry Base and the National 863 Information Achievement Industry Base.

The research and development of lithography machines is a matter of national strategy. Although this work is done by enterprises, it will never stop the pace of research and development because of the loss of several hundred million.

This is also an advantage of the system. State-led scientific research will not be abandoned halfway due to external factors. This model may not be the most efficient, but it must be the most effective!

...

Du Jiahai walked in with a smile on his face and said, "Chairman, the order from Gufeng Group is here! They purchased the second-generation rear axle assembly this time."

"It seems that the Gufeng Group has admitted defeat." Li Weidong breathed a sigh of relief.

After eliminating a competitor, Li Weidong felt relieved.

In fact, Li Weidong is also very worried. In case of encountering a tough opponent, it will be quite troublesome to be tough to the end.

However, this incident also gave Li Weidong a sense of crisis. As the market becomes more free and open, the competition will become more and more intense.

If Fukang Agricultural Machinery wants to survive in the fierce market competition, it cannot stand still and must forge ahead.

However, the background of Fukang agricultural machinery is too thin.

"Nowadays, the entire business of Fukang agricultural machinery is based on agricultural vehicles. The products are single, and the market it faces is also single, which is not suitable for the development and growth of enterprises. To develop new products and open up new markets, we must It's on the agenda!"

Thinking of this, Li Weidong showed a firm expression.

Li Weidong has always wanted to make a product, but due to various considerations, he has never decided whether to do it or not.

Now the incident of Gufeng Group has affected the survival of Fukang Agricultural Machinery, but Li Weidong has made up his mind.

I saw Li Weidong took out the key, opened a locked filing cabinet, took out a folder from it, and handed it to Du Jiahai.

"Lao Du, I have a task for you to transform our agricultural tricycle according to the above design and make a finished product!" Li Weidong said.

Du Jiahai took the folder and was slightly taken aback when he saw the drawings inside.

There are several drawings given by Li Weidong, but they are all the same. They are all modified from the cargo bucket of the agricultural tricycle, from the original cargo box to a tin shed, and rows of seats are also installed inside.

So Du Jiahai asked curiously, "Chairman, is this thing going to pull people?"

"That's right, it's specially used to pull people." Li Weidong nodded, and then said; "It's time to start the era of three jumpers!"