"General Manager Feng, are you not coming back?" Liu Chuanzhi asked over the phone.
"I will not be going back. If you need any help, you can call me. I will get someone to help you. You better think carefully this time. We will become the industry's public enemy! "Feng Yu reminded Liu Chuanzhi.
Liu Chuanzhi wants to make use of the National Day holiday to start a price war for Lenovo's PC! This way, the PC prices will plummet, and at the same time, Lenovo will offend the rest of the PC industry.
Of course, Lenovo will not only offend the Chinese PC industry. More importantly, it will also offend those overseas companies. These companies will hold a grudge against Lenovo, and it will be a huge obstacle for Lenovo to enter China in the future.
Lenovo can start a price war is because of the high tariffs imposed by Hua Xia. Actually, Lenovo's PC production cost is not lower than the overseas PC manufacturers. Other than the transportation costs, Lenovo has no other advantages.
But with the high tariffs, the other brands of PC will cost more than 10,000 RMB, and Lenovo can sell their PC at 8,000 RMB or even 7,000 RMB.
What is the actual production cost of those brands of PC? About 5,000 RMB. Including the brand value, sales cost, transportation cost, storage cost, marketing cost, tariffs, and profits, selling PC below 10,000 RMB will not make any profits!
"General Manager Feng, this is our best chance to unify China. When we become the top PC manufacturer in China, our profits will increase. After that, we will have the money to invest in factories and increase the purchase of components. This will lower our production cost. This is a virtuous cycle. "Liu Chuanzhi knew that if he starts a price war, he will offend the other PC manufacturers.
But he has no choice. If not, it will be harder for him to seize the market share. After all, Lenovo's foundation, brand awareness, and technologies cannot be compared to those big companies!
Price is Lenovo's biggest advantage. After all, Lenovo is owned by Hua Xia.
When Lenovo becomes the top PC manufacturer in China, it will be a monopoly. At least the government agencies will want to purchase Lenovo PC. The banking system, supermarket system, office system they developed were also very useful. This will increase Lenovo's sales to a certain extent.
Furthermore, they had signed an agreement with Microsoft, and only Lenovo can supply the cheapest Chinese version of Win95. The other brands can only supply the outdated operating system or the English version.
You want to buy the Chinese version? Fine. The lowest price for a PC is 800 RMB! This is the wholesale price. If you want to install a PC, it will cost 1,300 RMB!
Microsoft Win95 Chinese version was developed by Microsoft, Lenovo, and Kingsoft. But all the profits went to Microsoft. Feng Yu is the one who sets the market prices, and it must be in line with overseas prices. In the US, this is the price for the original Win95. I've converted it to the Chinese version, and I haven't charged you for this part.
In Feng Yu's previous life, Microsoft's operating system was expensive, and it was one of the reasons why pirated software was popular.
At that time, an XP system cost 998 yuan, and a computer only cost three to four thousand yuan. The system took up one-fifth to one-fourth of the price. How could people not feel that it was expensive? Feng, and most, the PC manufacturers, will to install, they, will help to install, will will to save money, they will help you, they, they will, will to buy.
Wang, Microsoft, Wang, Wang, Feng, Feng, and will have Bing, they, they, will to Feng, Ling. "Liu, I, I, I, I, I, I, you, I, I, I,., Feng, time..., I, I, Feng, I, I.
"Old Liu, do you remember the assembled computer I told you about? If we sell the motherboard, graphics card, RAM, hard disk, mouse, keyboard, monitor, CD-ROM, etc., as separate components, the prices will be much lower. After all, our taxes on electronic components are not high, and many of Lenovo's electronic components are imported. "Feng Yu reminded Feng Yu.
"You are saying they can buy the components and assemble it themselves? Although a PC is not complicated, ordinary people cannot assemble it. This is more complicated than a TV. Furthermore, how many people do you think would dare to touch such an expensive item? "Liu Chuanzhi said disapprovingly.
"What if someone who knows how to repair a PC sets up a shop for others? With the same configuration, minus the added value of the brand and the high tariff, how much do you think they can sell it for? "
"This … is not possible. How can there be so many people doing this? Even if there are, their operating systems are much more expensive. Our prices are about the same. Also, our PC is a brand, and we have after-sales service. They cannot compete with us. "Liu Chuanzhi thought for a while and said.
"Have you ever thought about what if those computer brands do the same thing themselves? They will assemble the PC according to their customers' requirements, and they will only be importing the components and not the assembled PC. "
"General Manager Feng, how can we let them take advantage of this loophole? If they import a certain proportion of the components, the tariffs will be the same as the entire PC. We are allowed to do this because of the government's policies. But the government's policies will not last forever. That's why we must set up factories in China to produce our own components. "
Feng Yu was relieved when he heard what Liu Chuanzhi said. With this policy in place, those big brands will not be able to compete with Lenovo in terms of prices. Lenovo can be a few thousand RMB cheaper than them with the same components. How can they compete with them?
"How much are you going to set the pricing at?" Feng Yu asked.
"8,800 RMB. I will give you the operating system, office software, and other web applications." Other than the operating system and office software, the rest of the software is developed by Lenovo itself. Kingsoft also developed some software. These software will be another way to attract customers.
"What's our cost?"
"Including the cost of the software, it will be around 6,000 RMB. The profits are not low. I am confident that we can become the top PC brand in Hua Xia within three months. " Liu Chuanzhi is confident. He will get his men to attack the government and government agencies within three months. The sales will be shocking.
"Alright. I believe you. Remember to watch out for the market and be wary of self-assembled PCs. Also, you must control the retail sales. Don't increase the pricing just because the sales are good. "
"Don't worry. My retail sales will be self-operated. Even if there are agents, they must follow the contract strictly. If anyone violates the contract, we will not let them off! "
Lenovo had wanted to use direct retail stores for all their products. But in some regions, it will be troublesome if they do not let those second generations have their own stores. Also, the cost of these direct retail stores is not low, and Lenovo does not have enough funds now. But if someone does not follow the rules, Lenovo will not be a pushover!
"Alright. I wish Lenovo success in this price war. From now on, we will dominate Hua Xia, Asia, and the world!"
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