Extraordinary Genius

Chapter 1384: The Price Is Weapons

“President Feng, you didn't expect us to be defended. ”

Speaking of even thinking about the defendant, Liu Xianzhi still looks happy, and doesn't seem to have any worries.

Because Feng Yu had long warned him that introducing this inexpensive laptop into an era of bringing it under $500 would inevitably cause strong dissatisfaction among those manufacturers who were likely to sue Lenovo Group for unfair competition, dumping, etc.

This time, Feng Yu guessed again, and those enterprises did indeed sue Lenovo Group for both charges.

And dumping and unfair competition are based on the group selling below cost, and in fact, the group's production costs are less than $400.

So these two allegations, even if the group ignores them altogether, simply throw away the evidence of production costs and they can erase the unfounded accusations from the invisible.

As for why not just throw the evidence now, of course, to keep the matter fermented. This is also tantamount to propaganda for Lenovo Group, while allowing other companies to enter the low-cost notebook market so early that they have sufficient time to completely occupy the market.

“I know. By the way, make sure our sales in any one area are no lower than the cost, right? ”

“No, it's just that in some areas, due to higher tariffs, transportation, publicity, etc., we may make less than $10, but it's definitely not a discount sale.” Liu Legendary affirmed.

“That's fine. As for the legal matters, leave them to the professionals. Laptops should not be so expensive in themselves. This should not be a luxury item, it should be like appliances commonly used in people's lives. ”

“Cell phones were sold domestically for 20,000 or 30,000, and money may not be available. The BP machines were also a few thousand large at the beginning, and the same number was very small. ”

“But now? BP machines have become history and have been eliminated. And mobile phones, from tens of thousands of dollars to thousands of dollars, to the ultra-low price of 399 yuan for storm phones, have become a product that the vast majority of people consume. ”

“Rural areas are afraid to say now, but in cities, almost every household has a cell phone, every family has a cell phone, and some people have more than one cell phone, which is better than some appliances. ”

“And computers, from tens of thousands of dollars, to 10,000 dollars, to 56,000 dollars, even below 5,000, the price goes down the road, but the performance goes up and down. By the price of laptops, the price reduction is not so great, we even think of the group, even if it is the pioneer of price reduction sales. ”

Liu Xianzhi heard this and smiled and said: “Really? Every time we cut prices, we caused the market to change. And with each price drop, our sales are increasing and our profits are increasing. ”

Every price reduction is carefully calculated. You can't always increase your sales volume, but your profits go down. So what's the price cut, self-harm?

Just like this inexpensive laptop, because many of these consumers don't want to buy a notebook for seven or eight grand, or even five or six grand.

But when they found out that a laptop sold for just over 3,000, they couldn't help it. These people, the equivalent of new consumers, do not coincide with the original market.

So even thinking that the group can increase sales and profits at the same time doesn't mean a blind price cut.

Like now, Lenovo Group's laptops have more than 10,000 yuan, 78,000 yuan, 56,000, etc. and are targeted at different consumer groups.

Price, in the hands of Lenovo Group, becomes a weapon, a weapon that crowds out other competitors. Also configured, our prices are lower, so that others have to follow suit to lower prices.

But even if the Group's production costs are lower, so profits are not much lower, and other manufacturers, especially those with low capacity to reduce the cost of individual products, are slowly pushed out.

Compared to this, in the North American market, the sales of laptops of Yuni, Xiaoxia, Dong and other companies continued to decline. Even after the Group's price reduction, Huipu, Dailuo and other companies could follow the price reduction. IBM and fruit companies continued to take the high-end route, but also launched notebooks with lower prices than the civilian ones, but these manufacturers in the island country were seriously damaged.

There are also some manufacturers who are not strong enough to exit the North American market directly. They are the kind of companies that buy spare parts and assemble, belong to the last class of enterprises, biased against this last class of enterprises, in terms of prices and services are not very good, then they are doomed to be eliminated by the market.

The best way for Huaxia to crowd out other competitors at a price is with Glens. The world's largest microwave producer and distributor, the leader, and now their air-conditioning business, is operating in the same way.

Thirty-five percent of the market share of microwave ovens is Glens. Except for North America and Central Asia, Glens is the leader. Price standards for various microwave ovens are also set by Glens.

They let microwave ovens go from the thousands of dollars to the hundreds of dollars they are now. At the same time, the largest microwave manufacturing plant in the world, also owned by Grants, they also produce on behalf of many microwave companies, and because of their huge output, the cost of substitution is lower than that of many previous brands themselves, which also captures the lifeblood of other companies.

Now the Grants air conditioners, they do the same thing.

Windstorm Electronics had developed a number of related technologies, which were also traded for shares in Grants. Grant did decide for himself, however, that Taihua Holdings was only a joint-stock company and a small shareholder.

And the Grants model, learned by many companies abroad, has not been able to emulate success. Lenovo Group's PC business, similar to the Grants model, is also using price as a weapon to dominate the Huaxia market, thus breaking out of the country and going to the world.

Step by step from Huaxia Fang to Asia Fang, Eastern Europe Fang, Africa Fang, etc. Now North America, South America, Western Europe and other regions are their main pioneering target.

Liu Xianzhi said at the company's general meeting that what Grants could do, even think about it, could be done, and could be done better.

Even the group did the same thing, and when it reached a certain size, it squeezed out the weapon at a price that was half its capacity.

After a few experiences, some Rangers were killed.

Every time a price is set, it is well thought-out and they want to make it a solid barrier to the industry. Before they could do it, this time, they could do it too!

……

PS: It hurts so much to raise coins every day. You can't even split a penny of the increase. Why don't you go to Dashen and spend more coins and come to Lao Si here and use the normal coin? Four, on your knees.