After Lenovo Group introduced their new budget laptop, the traditional netbook market was affected. Their netbooks had no advantage over Lenovo Group's ultrabook.
At this time, they decided to lower their prices.
In fact, after mass production, their costs had dropped rapidly, and their profits had also increased a little. But who would be willing to lower their profits if they could get higher profits?
That's why they had discussed among themselves. The retail prices of their products did not decrease at all. They were all based on the prices set by Lenovo Group in the past.
But now, Lenovo Group's new products had entered the market, and they will not be able to compete with them if they maintain the same prices. Lenovo Group's ultrabook was good enough for them, let alone the ordinary consumers.
At this time, Lenovo Group had used their channels to sell Fang Zheng and Tong Fang's netbooks overseas. They hated Lenovo Group even more!
Lenovo is not going to produce netbooks and wants others to compete with us? Fine.
We will lower our prices. Anyway, we are in our own territory, and there are no tariffs. Even if the production cost is slightly higher, we will still have the advantage in terms of price.
But it's nothing to defend their territory. They decided to work together to encircle Lenovo in the Hua Xia market.
As long as they do not make any losses, even if they do not make any profits, they will still inflate the prices.
If each of them were to produce 1 million USD worth of products, they will be able to produce tens of millions of USD worth of products in the Hua Xia market. Lenovo Group's new products will not be able to sell well.
If each of us loses 100,000 USD, Lenovo will lose a few million USD. If each of us loses 1 million USD, Lenovo will lose tens of millions of USD!
Didn't you keep lowering your prices? This time, we will lower our prices too. We will destroy this cheap laptop market!
After Lenovo's ultrabook entered the market, the consumers welcomed it. Those who had planned to buy a netbook turned around and bought the lighter and thinner ultrabook. There were also some people who chose to focus on audio and video, which caused other netbooks to be in trouble.
At this time, those PC manufacturers announced that they will lower their prices for their netbooks!
Their prices were very high, and the average price was more than 50 USD!
Many manufacturers had entered the market, and the prices of netbooks had dropped. Now, the prices had dropped by 50 USD, and the retail price had dropped below 400 USD!
This price once again refreshed the lowest selling price of a notebook.
In the Hua Xia market, the price of a netbook was as low as RMB 2,499, which was a gap of RMB 1,000 compared to the ultra-thin books and audio-visual books. This made the price extremely competitive!
Yang Yuanqing was shocked when he received the news. He immediately informed Liu Chuanzhi, and Liu Chuanzhi immediately called for a board meeting.
…
"Everyone, Director Yang has explained the situation. Everyone should be clear, right? So tell me, what are your thoughts? "
"We still have quite a lot of profit margin. Why don't we reduce the price as well?" said the director of the Academy.
Yang Yuanqing shook his head and refused. "We can't lower the price! Our new product has just been launched, and the sales volume is quite high. It's only been a few days and we've already lowered the price. What about the consumers who bought it before? Do we get a refund? "
"Even if you can get a refund, you can't do that. This will affect our Lenovo Group's brand and reputation! Not only can we not lower the price now, but we can also not lower the price for the next 6 months to 1 year. "
The profit margin for this product was quite high. Actually, lowering the price can also guarantee the profits. But if that's the case, why would Lenovo Group develop this product?
Lenovo was the most popular brand in the netbook market. Many consumers who did not get to buy Lenovo's netbook were asking Lenovo to produce more netbooks.
"I also think that we should not lower the price of our products. Our products are already better than netbooks, and our designs are eye-catching. This price is already very reasonable. "Qiu Bojun also expressed his opinion.
When he first set the price, he thought that it was too low and that it should be higher. Their cost was much higher than netbooks, and why can't they increase their profits?
"How are we going to make up for the price difference between 100 USD overseas and over 1,000 RMB in China? How many people can we attract if we can buy a laptop for 2,500 RMB? Before that, I'm afraid that 2,500 yuan can only be used to assemble a desktop with average performance! "A director said.
Lei Dajun kept quiet. He was thinking about how General Manager Feng would deal with this situation. Manager Feng had always said that when facing competition, we must magnify our strengths and magnify our opponent's weaknesses.
So what is our advantage, and what is our opponent's weakness?
Our strengths are better products. If it is only Hua Xia market, we will have the home advantage. This is our territory, and we can increase our competitiveness in many areas. For example, we have more stores, better after-sales services, Hua Xia brand, etc.
Another advantage is Lenovo has close cooperation with AMD, Nvidia, etc., and Lenovo might be able to use their influence to influence the decisions of those manufacturers.
"Director Yang, these are all imported products. Are they still making profits at this price? If they are selling at a loss, can we sue them for dumping? "A director asked.
"If we are the ones producing this product, we can control the cost of this product to less than 2,200 RMB. They can set up a factory in Hua Xia, and with some tax exemptions, they should be able to control the cost to less than 2,400 RMB. At this price, they can still make a few dozen RMB profit." Yang Yuanqing said.
Yang Yuanqing had thought about this before, but after some calculations, he felt the other party should not have crossed the line. But a 2,000 RMB PC can only make a few dozen RMB profit. They are purposely disrupting the market!
The most disgusting thing was those manufacturers working together. They are trying to destroy this market!
Also, Lenovo Group's new products will be affected by the sales of this product. When other manufacturers also develop ultra-thin PCs, Lenovo Group's advantage will be gone!
Lei Dajun suddenly asked. "Director Liu, Director Yang, I have an idea. Since we cannot lower our prices, why can't we ask them to increase their prices? "
Everyone was confused and looked at Lei Dajun. Why should they ask them to increase their prices?
"Director Liu, Tai Hua Crystalline Silicon is the world's top manufacturer, right? What if the price of Crystalline Silicon increases? "
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