Losing Money to Be a Tycoon

There are a lot of changes in the second half of the previous chapter, just refresh it

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Pei Qian replied: "This is very simple, because there can only be one dominant MOBA game in the world. This is a'winner takes all' competition."

"For me, this is not a question of dare to dare, it is a question of no other choice. It is not that I dare to burn money, but must burn money. If I can't persist, the money I burned before will be wasted."

"The question I want to ask is, for Dayak Group, what is the upper limit for burning money for ioi?"

Eric took a sip of tea and thought for a while and said: "I don't have a very definite answer to this question, and I can't guarantee the accuracy of the answer."

"Our company's senior executives have different opinions on similar issues. Before the meeting is decided, no one knows what the outcome will be."

"Moreover, the company has a department responsible for data analysis to provide a basis for high-level decision-making. The data in this department is also very important."

"If you let me judge, this number will fluctuate depending on the situation. If a lot of resources are invested but no effect is seen, and the market share grows slowly, then it is not completely impossible to give up."

"If I were to estimate a number... I guess it was 100 million dollars."

"Our company only spent about 250 million dollars on the acquisition of Zhitou. This has already brought a certain amount of pressure, and it is impossible to continue to burn indefinitely, especially when there is no clear prospect."

"My second question is the same as President Pei: For Tenda Group, what is the upper limit of burning money for GOG?"

Pei Qian smiled: "The upper limit is all the funds Tenda can use."

"The third question is that 100 million knives are obviously not the limit of Dayak's ability, so... do you think it is possible that Dayak will burn more than 100 million dollars?"

Eric thought for a moment: "My personal judgment, of course this possibility exists, but it will not be very high."

"Everyone knows that our company has always been a company that focuses on short-term benefits and immediate benefits. This has nothing to do with the right or wrong of the concept, but just our company's thinking habits."

Hearing this, Lin Wan subconsciously nodded slightly.

The reason why Dayak Group is so notorious in the game circle is because they show the coldness of capital to the extreme.

Acquiring potential game companies, quickly overdrawing and draining their full potential, ruined many excellent game companies.

This shows that Dayak Group is indeed a capital group that only values ​​immediate benefits, not long-term benefits.Then, if Zhitou’s market share has been declining, and it continues to burn money like a bottomless pit without results, Dayak Group will give up and stop losses, which is indeed a highly likely option.

Eric said: "My last question is: Mr. Pei, you said you will use all the funds for GOG marketing, but the problem is that with Tenda’s current size, doing so will inevitably bring huge amounts to the capital chain. Pressure, once there is any uncertainty, it may cause huge losses, and then drag down the entire group."

"President Pei, where does your courage come from?"

Pei Qian was silent for a moment and sighed softly: "My luck has always been good."

This seems to be a very empty answer, but Eric was not dissatisfied, but lost in thought.

After a while, he smiled and picked up the wine glass: "President Pei, I think we have all obtained the information we want, and I toast you."

Pei Qian also picked up the wine glass and smiled and said, "Mr. Ai, I hope we can meet again if we are destined."

...

After the dinner, the gate of Yuanda Tiandi.

The people of Tenda watched Eric leave.

Pei Qian didn't know exactly what information Eric would sum up from these words. He only knew one thing, that is, each other's topics had always been focused on "burning money".

As long as Eric goes back, it can affect the senior management of Dayake Group to continue to burn money happily, that's fine, nothing else matters.

Lin Wan tentatively asked: "President Pei, what do you need to do with Zang Yang Game?"

Pei Qian shook his head: "No. After a day of shopping today, everyone has worked hard. Let's go back and rest."

Xiao Sun was already driving and waiting. Pei Qian drank some wine at the dinner table. He was naturally a little sleepy at noon, so after bidding farewell to everyone, he went straight back to rest in the car.

After watching President Pei leave, Lin Wan, Zhang Yuan and Min Jingchao gathered together to discuss what happened at the dinner table.

Zhang Yuan was puzzled: "What do the three questions between President Pei and Eric mean?"

"The three questions they asked do not seem to be very critical questions;"

"When answering, they are all true and false, false and true;"

"But both of them are very satisfied with the answer to the question, this..."

"It's kind of like a dumb riddle, I can't guess it."

Zhang Yuan is really confused.

Min Jingchao also nodded in agreement: "Yes, the two seem to have said a lot of things, but they seem to say nothing."

"Some information may seem important, but in fact, with the intelligence acquisition capabilities of both parties, this information should be available sooner or later."

"Moreover, everyone is actually in a chain of suspicion at the dinner table. Even if Eric said a real message, we would not believe that it was real information, but would consider it in the opposite direction..."

"I don't understand it anyway."

Lin Wai also shook his head: "I don't know, but I guess that the focus of the issues on both sides should also hide some information, but we can't understand it and we can't interpret it."

"Sure enough, Eric is still not easy. Those who can get to the top in a multinational company are not the ones who wait and see."

"Before we were able to beat him, in the final analysis, we still rely on Mr. Pei. Our ranks are still too low."

"Anyway, I still believe in President Pei. I think Dayak Group will never give up."

...

On the plane, Erica lowered the visor on the window and closed his eyes to rest.

During the long flight, he had a lot of time to slowly sort out the information he had collected in his mind, and dig out useful information from those three questions.

At the dinner table, he and Mr. Pei each asked three questions and answered three questions.

Eric knew very well that they were both old foxes, and it was impossible to take what the other side said completely.

But Eric also knows very well that his and Mr. Pei's purpose is to dig out some useful information from the other's true and false answers.

"The three questions that Mr. Pei asked me were the new person in charge of ioi national service, the upper limit of Dayak's burning money, and what is the possibility of breaking this upper limit."

"Obviously, he is still curious about his new opponent, but he is not very concerned. What he cares more about is how much money Dayak Group will burn."

"This shows...'burning money' is the crux of this commercial war."

"And the three questions I asked are actually related to Tenda's marketing strategy. Although Mr. Pei's answer is true or false, as long as you analyze it carefully..."

Eric thinks hard.

In the past few months, he has done a lot of investigations, except for some implementation details, the operating methods of GOG are basically clear.

It is nothing more than frantic burning of money!

Originally, Eric thought that Tenda was only willing to spend money on marketing, but then he discovered that making less money is actually burning money in disguise.

GOG heroes are all free, and all skins are at cabbage prices. The first skin of heroes designed by the player is directly discounted... Such a discount is no different from giving away.

And ioi has always been unable to beat GOG, a very important reason lies in the pricing of heroes and skins.

Although the price war is low, it is indeed effective.

Eric knew this, but he couldn't change it, because it was difficult for him to persuade Dayak and Finger Company executives to change the skin price to the same cabbage price as GOG. The profit involved here is really too great.

Therefore, the question Eric most wants to ask is actually, why does Tenda dare to burn money?

You must know that Tenda is not listed, and there is no option to burn investors and stockholders' money. All that is burned is the company's money.Or to be more precise, the burn is all the money of Mr. Pei.

That's why Eric felt confused. Doesn't he feel distressed by Mr. Pei burning money like this?

And President Pei's answers to the three questions can actually be boiled down to one point.

Because the MOBA game is a winner-takes-all, it must be burned forever, otherwise it will be lost;

Will use all the funds Tenda can use to burn money to promote GOG;

As for the risk of breaking the capital chain, Mr. Pei's answer is directly to "trust your luck."

This is a gambler mentality!

Eric rubbed his temples.

"From the information available, Mr. Pei's actual behavior is indeed consistent with what he said. It is not an exaggeration to say that he is a gambler."

"If this information is true, then President Pei said these words, there may be two purposes:"

"The first possibility is that you want to scare away Dayak and tell Dayak that this war is a bottomless pit. If you dare not follow to the end, then please give up as soon as possible."

"It's like being at a poker table, directly stud all your chips, creating huge psychological pressure on the other side, betting on the opposite side and not dare to follow, eating the chips on the table."

"The second possibility is that, as a radical method, Dayak will burn money, including reducing the price of the skin. In this way, the two sides will be caught in a dangerous melee, but the entire MOBA game group Will further expand rapidly."

"After the cake is big, the winner takes all, you can get greater benefits."

"But the latter is obviously too risky, not like a sensible behavior."

"What if this is the false news that President Pei deliberately released?"

"That means President Pei is not a gambler, but is bluffing, so he is still playing the role of'intimidation'. To put it bluntly, he still wants to scare Dayak back."

"Sure enough, it is still too difficult to guess Mr. Pei's psychology."

"However, I can also circumvent this problem and start with realistic conditions."

"President Pei's answers to these three questions actually verified one of my guesses inadvertently, that is..."

"Although Tengda burns hard money, the flow of funds is not particularly healthy. In other words, Tengda Group is actually a state of dancing on the tip of a knife."

Eric has already analyzed it. He believes that with Tenda’s investment and return, it is very likely that the company has maintained a small profit or even a small loss. In other words, President Pei seems to pay too much attention to capital turnover. Speed, the company's ability to resist risks is not strong.

Tenda is really willing to give money, but this kind of money is also limited.

Once the speed of spreading money exceeds Tenda's profitability, Tenda's capital chain will become very dangerous.

When Eric asked about the funding chain, Mr. Pei's answer was "by luck."

Eric has a vague answer: "In other words, I don’t need to worry about Mr. Pei’s mentality. Whether he is a gambler or not, Tenda Group’s capital chain is actually in a relatively tense state. ."

"That is to say, Dayak Group will have a'limit value' for burning money. This limit value is the profitability of the entire Tengda Group's all industries and the upper limit of funds that Tengda Group can obtain through various means."

"When this limit value is not exceeded, no matter how much money is burned, it is useless. GOG's first-mover advantage cannot be shaken; but once this limit value is exceeded, the entire Tenda Group may be dragged down!"

Eric couldn't help smiling.

When he answered the question of President Pei before, he once said a number: 100 million dollars.He said that this is his estimate, the upper limit of the amount of money that Dayak can withstand.

If the burning of money does not achieve obvious results, Dayak Group will burn so much money at most.

It's hard to tell whether this is true or false.But whether Mr. Pei believes it or not, this will establish an anchor point in Mr. Pei's psychology and play a certain suggestive role.

Moreover, the premise of Eric’s hypothesis is that Dayak Group is not particularly clear about the situation of Tenda Group, and only burns money to its own psychological bottom line to make concessions.

But the question is, what if Eric shared this information with the senior management of Dayak Group?

Chretien will adopt a different operating strategy from Eric, and may make certain modifications to the ioi game itself, and may operate in conjunction with China’s local game company.

But Eric judged that Chretien's series of measures would not be any better than his own.

When Chretien also fails, Eric can take the opportunity to report this information to the senior management of Dayak Group, and it is very likely to get a chance to make a comeback.

At that time, Dayak Group will either give up the money-burning war with Tengda Group, or it will follow Eric's advice and burn to the limit of Tengda!

If it is the former, it goes without saying; but if it is the latter, then Eric has a chance to stand up!