"Feng, Liu, I think both of you should know that IBM is the best in the PC market." Gerstner said.
Maybe 10 years ago, IBM was the best in the PC market. But after IBM shifted its focus to software, IBM lost its position as the best PC market. Now, IBM is behind Dai Er, Hui Pu, and Lenovo. If it weren't for the long-term contracts in the US market, IBM would be out of the top 5.
For example, when Lenovo acquired IBM's PC business in Feng Yu's previous life, IBM's PC sales plummeted. This was because the US government was afraid Lenovo had "backdoor" their PC sales! This was also the reason why Hua Xia wants to develop their own PC.
"I don't know how you define the concept of best, but from product design to price-performance ratio to sales, IBM is not the best. Of course, other than IBM's brand. But you all have to admit that in the US market, even Dai Er and Hui Pu cannot compete with them. You all have also overtaken them in Europe. As for the Asia market, we, Lenovo, have the final say. "
"I admit that IBM is still the best in the world in some technologies. But a PC does not depend on one technology. Everyone needs to consider the pros and cons when buying a PC. IBM defines PC as a high-end PC, but I can't see any high-end features. Blindly focusing on the added value of a consumer brand is stupid. "
Liu Chuanzhi was not polite with his words. He pointed out that IBM's PC sales are a consumer brand. Although IBM's brand is strong, as their products become worse, their sales will drop.
But what Feng Yu said is the truth. Many people had complained that IBM's products are not innovative enough, and their prices are too high. A truly high-end PC would always be better than other PCs in terms of performance. But now, not only did IBM fail to outperform IBM, but many other brands of notebooks that were cheaper than IBM's were outperforming IBM's!
"But in the US market, Lenovo is far behind IBM. That's why I think IBM should be the main distributor in the US market. Hua Xia and even the rest of Asia can be handed over to Lenovo. This is the real channel advantage."
Feng Yu said. "Do you really think that without IBM's help, our Lenovo will not be able to sell in the US? Many large companies in North America, including eBay and Amazon, are using Lenovo's PCs. Of course, this also included companies like Nvidia and Kingston, as well as companies with great potential like Google. As long as we advertise properly, we will be able to snatch the market with our price advantage. "
"We have strong partners in Europe. Philips and Thomson are the world's top consumer electronics companies. Lenovo's sales in Europe are increasing, and we are already the industry leader in Eastern Europe."
"Feng, you are belittling brands. This is North America and not Asia or Europe. We at IBM have a lot of loyal customers. " Gerstner emphasized, "Plus, we have more stores, which you don't have."
Feng Yu smiled and asked: "What do you think will happen if I endorse Lenovo PC?"
Feng Yu is only joking. He is not interested in endorsing Lenovo PC.
Gerstner was stunned. What did Feng Yu say? He wants to endorse Lenovo PC? Feng Yu does not like to appear in front of the media.
If Feng Yu endorses Lenovo PC personally, the consumers might really buy it. Businessmen like them are also superstars in the eyes of ordinary people, and they are more outstanding than those superstars. They know how much a superstar can bring to their products. IBM also looks for superstars to endorse their products.
Liu Chuanzhi added. "Gentlemen, if you are willing to cooperate with us and hand over the sales rights to Lenovo Group, I can guarantee that IBM's profits will increase. I will market IBM like Lenovo and will not favor one over the other."
Gerstner and Peng Mingsheng looked at each other. They realized they are at a disadvantage in the negotiations. When IBM was negotiating with others, they were at a disadvantage!
But Liu Chuanzhi wants to let Lenovo have full control over IBM's PC sales, including the North American market and IBM's existing sales channels.
The value of these channels is not immeasurable, but it is still very high.
More importantly, IBM's PC sales will have to depend on Lenovo in the future. Although IBM had shifted their focus to software and services and will increase their R&D, the PC business is still profitable. Letting Lenovo take over IBM's PC business is the same as Lenovo taking over IBM's PC business.
Liu Chuanzhi said he will treat IBM like Lenovo. That is impossible. If Lenovo had used the same amount of marketing, with Lenovo's high price advantage and advertising, IBM's sales will not increase.
Suddenly, Peng Mingsheng had a thought. He felt Lenovo wants to take over IBM's PC business!
But he immediately threw this thought out of his mind. How can this be possible? Which company dares to take over IBM's PC business? We are IBM. We are the pioneer of the PC industry!
But if IBM's PC sales are handed over to Lenovo Group, it is equivalent to handing over half of their lifeline to Lenovo Group.
In terms of PC design and development, no company is better than Lenovo. Lenovo is the most competitive company in both desktop and notebook PC. Price, design, performance, brand, all of them are strong!
Peng Mingsheng raised his head and looked at Liu Chuanzhi. He seems to see Liu Chuanzhi's desire in Liu Chuanzhi's eyes. Liu Chuanzhi's desire to swallow up the IBM PC business.
If IBM sells its PC business to Lenovo Group, IBM will get a portion of Lenovo Group's shares. At the same time, IBM can focus on software and services development. This is not a bad thing.
Microsoft had gotten to where it is today because of IBM's support. Many people said if IBM had acquired Microsoft, IBM will be the industry leader. Now, IBM had been overtaken by Microsoft. If IBM can focus on one business, it will be easier for them to become the industry leader.
"Make your decision. You all should know what is best for IBM." Feng Yu said.
"Feng, I don't think any company will make such a rash decision to let another company sell their most important products. We need to discuss this with the board of directors, but we will give you an answer as soon as possible. "Gerstner said.
Feng Yu did not expect IBM to give in with just a few words. But it seems that both Gerstner and Peng Mingsheng are hesitating. That's enough.
She believed that Liu Chuanzhi could do the rest of the work well.
"I will wait for your good news."
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