Duan Yongping gathered all the key personnel in the company for a meeting. China had suddenly lifted the restrictions on the importation of video game consoles. Overseas video game consoles will be entering Hua Xia market.
Currently, The Little Tyrant was relying on its low prices, crazy advertising, and pirated cartridges to dominate China's video game console market.
But The Little Tyrant knew that their video game consoles were imitations of Nintendo's old video game consoles. Nintendo had the patents for this technology. The accompanying game cartridges were also pirated. If Nintendo sued them for copyright infringement, the Little Tyrant would be in trouble. They might even have to stop production and face fines.
Luckily, the Little Tyrant had considered this situation and had been developing a new product. This product belongs to The Little Tyrant.
And now, he already had a rough idea of how to proceed. The Little Tyrant realized that more and more families were not willing to buy video game consoles for their children even though they had higher incomes.
Duan Yongping suddenly thought of something. What if they were not producing video game consoles but learning machines that could help their children learn? They could turn some words, idioms, English, etc. into simple games. This way, the parents will buy it for their children, and their children will be able to play games and learn at the same time. Killing two birds with one stone!
Of course, before they start production, they still need to do market research. The Little Tyrant realized that other than computers, there were no similar products. Computers cost more than 10,000 RMB. If the Little Tyrant could produce a simple and easy to use product with simplified functions, the cost could be controlled to less than 2,000 RMB. It should be selling well at 3,000 RMB!
This idea made Duan Yongping excited. He was confident that The Little Tyrant will find new ways to increase its profits and create a new product. It will be a product between video game consoles and computers.
Duan Yongping got the support of the rest of the staff in the company. They felt that they must produce a new product to maintain The Little Tyrant's status. They will no longer be a cheap video game console factory.
Duan Yongping reported this idea to the leaders. Now, The Little Tyrant was still owned by a state-owned enterprise. The leaders in the City Government felt this idea was not bad. But when they asked, they found out that the funds for the new product had been used up. Duan Yongping wanted the City Government to give them another 1 million RMB for R&D.
The city immediately rejected him. They had already given him 1 million RMB, but he hadn't done anything yet. Now he wanted another 1 million RMB? This one million, this one million, when will it end?
Duan Yongping explained patiently. When this product is developed, it will monopolize the market and beat all the competitors. The company's profits will increase by several folds.
The most important thing is that this is not an infringement of copyright!
The country has opened up the policy of importing game consoles. When foreign game companies enter the country, they will definitely do market research and will definitely find out that we have stolen their patented technology. If we are sued, we will have to stop production of our products. Even if we don't get sued, if the other party also releases a cheap game console, with the advantage of foreign brands, it will have a strong impact on our products.
Duan Yongping felt helpless. Nowadays, Chinese people have this concept. Foreigners' things must be the best. Expensive things were bound to be good things. He was afraid that even if the foreign game consoles didn't lower their prices, they would still lose the majority of the market.
The introduction of a new product is very important. It might even affect the survival of The Little Tyrant.
The City's leaders had been unhappy with Duan Yongping for a long time. Duan Yongping had been saying that The Little Tyrant has problems with its management and needs to be restructured.
How to change the company? Duan Yongping is not satisfied with being the General Manager? You still want to change the company to a shareholding company and become the Chairman? This company belongs to the City and not Duan Yongping!
Duan Yongping had told him that The Little Tyrant's most important technologies and management are its most important. He also requested that after the restructuring, the technologies and management must be converted into shares.
What does this mean? Duan Yongping wants to split up The Little Tyrant? Without you, The Little Tyrant will be bankrupt? Also, are those technicians not getting high enough salaries? They are getting 200 RMB a month. It's more than my salary. What more do you want?
Guangdong does not have much, but we have a lot of talented people. Especially in the past two years, there are many talented technicians from the north coming to Guangdong. Are their technologies worse than yours? If you all are not willing to work for me, I will find someone else. Maybe 150 RMB a month is enough!
Duan Yongping had said that the Little Tyrant should be restructured into a shareholding company. He should remove all the departments and increase the manpower in the R&D department and sales department. He should also give them some shares to reward them for their contributions to the company. This will motivate them to work harder and make greater contributions to the company.
Of course, Duan Yongping also felt that he was the one who created The Little Tyrant. When he took over this factory, it was 2 million RMB in debt. But he did not ask for a single cent from the City Government. He borrowed money from the City Government and persuaded the distributors to pay first and then the goods. He also held back the suppliers' payments to produce The Little Tyrant. He also borrowed money to advertise on CCTV. This was the reason why The Little Tyrant is so popular in the market. This was also the reason why The Little Tyrant is the leading video game console manufacturer in China.
When this company was named The Little Tyrant, his goal was to be the tyrant of the video game industry. Now, he had achieved his goal. These few years, he had made tens of millions of profits to the City Government.
Wasn't he the one who created all these? Shouldn't he get some rewards? Look at those foreign companies. Even the higher management of those companies have shares. Why can't I have shares? Which higher management is more capable than me? Why are those foreign companies' higher management salaries in the thousands or even tens of thousands of RMB, and my monthly salary is only 200 RMB?
Also, in other places, there were similar restructuring methods. Those who had made significant contributions to the company will get shares as a reward. Duan Yongping felt that he fit the criteria, and no one in the company or the factory will object. He was the one who made everyone go from not receiving their salary to having their salary doubled. Everyone could not thank him enough.
But the City Government did not agree. They felt that the company does not need to be restructured. The Little Tyrant was a company owned by the City Government and was doing well. It should continue to be like this.
But after Duan Yongping tried to force the City Government, the City Government finally relented. If Duan Yongping were to quit now, no one would be able to take over the responsibilities of The Little Tyrant.
But the City Government gave Duan Yongping a condition. If The Little Tyrant's annual profits were more than 100 million RMB, then they can talk about restructuring the company.
Duan Yongping was overjoyed when the City Government relented. But now, the City Government does not want to give him the R&D funds. Without the R&D funds, the new product will not be developed. Without new products, how is he going to make money? If the City Government did not take away all the profits, with The Little Tyrant's profits last year, he would not need to worry about 1 million RMB.
After much coaxing and pestering, the City Government finally agreed to give Feng Yu another 500,000 RMB. They will only consider if they want to increase the R&D funds after the product is developed. Duan Yongping thanked the City Government profusely and left. At the same time, he was determined to develop the Learning Machine as soon as possible. He wanted to let the City know what he was capable of!
What Duan Yongping did not know was that Aiwa Learning Machine's prototype had already been manufactured!
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