Rebirth of the Industrial Tycoon - Vol 2 Chapter 462

Chapter 462 Strangle in the cradle

Fukang Agricultural Machinery Company, Li Weidong looked at the sales data of last month and couldn’t help frowning.

“It has been three months in a row, the sales of agricultural tricycles have not increased!” Li Weidong said.

“The sales volume this month has not improved much, but last month should be okay!” Du Jiahai, the second in command of Fukang Agricultural Machinery, said from the side.

Li Weidong shook his head: “Last month’s sales were not bad because there were orders for sanitation vehicles. Excluding the orders for sanitation vehicles, the sales figures are not so impressive.”

Du Jiahai continued to argue: “Well, I think the market for agricultural tricycles is just this big, and there will always be a period of saturation, so when the sales reach a certain level, the market is gradually saturated, and it’s normal for them not to rise.”

“This is the truth, but it is still too early before the market for agricultural tricycles is saturated! At least in the next fifteen years, the market for agricultural tricycles will be in a state of rapid expansion.”

Li Weidong went on to explain: “Our country’s economic development is getting faster and faster, and the demand for various agricultural products will increase. Farmers’ income will become higher and higher. Therefore, the demand for agricultural tricycles will only increase rapidly.

According to the normal trend, the demand is increasing. The sales of our agricultural tricycles should be more and more. If our sales stagnate, then there is a problem. Is there something wrong with our product? ”

Du Jiahai hesitated for a moment, and then he said, “There should be no problem with our products! In terms of quality, I always strictly control the quality. We sell agricultural machinery, and I also come from the countryside. Don’t dare to harm the farmer. matter.”

“What about the price?” Li Weidong asked.

“The price is still the previous price and has not changed.” Du Jiahai went on to explain; “Agricultural machinery involves agricultural machinery subsidies, so the price will not change easily.”

“That means there is a competitor in the market.” Li Weidong said.

“Didn’t we always have competitors? In addition to our factory, other agricultural machinery factories also produce agricultural tricycles, and they all buy rear axle assemblies from our factory!” Du Jiahai said.

Li Weidong sighed lightly, and secretly said in his heart that this Du Jiahai does technical work, it is indeed hard work, but let him do business management, the ability is slightly inferior.

Li Weidong originally planned to promote Du Jiahai as the person in charge of Fukang Agricultural Machinery, but now it seems that Du Jiahai is only suitable for technical management and workshop management. When it rises to the level of business management, he has to find another candidate.

To put it bluntly, running a business is to do business. This kind of thing still requires a certain talent. Du Jiahai does not even have the most basic market sensitivity, and obviously does not have this talent.

Then Li Weidong said: “Go and get the sales data of the rear axle assembly this year.”

After a while, Du Jiahai brought the information, and Li Weidong immediately checked it.

“Sure enough, in the past three months, not only the sales of agricultural tricycles, but also the rear axle assembly have also fallen.” Li Weidong said.

Du Jiahai was still unclear, so he blinked and didn’t understand Li Weidong’s meaning.

Li Weidong said: “Is it still unclear? It means that other companies have also begun to produce rear axle assemblies. The cost of rear axle assemblies manufactured by the enterprises themselves is definitely lower than that of buying, and the agricultural vehicles manufactured will also have more advantages. Competitiveness.”

“How is this possible, the rear axle assembly is the technology we got from Japan!” Du Jiahai said.

“To be precise, it was Japanese technology acquired in the 1970s a few years ago, and this technology is almost 30 years away.”

Li Weidong continued; “Now no more than a few years ago, when we just introduced the rear axle assembly, this is indeed a very advanced technology, and other companies can’t imitate it.

But with the development of the country, the technology of various enterprises is also improving, and it is not new that some enterprises imitate the rear axle assembly. I even think that it is too late for the company to have the idea of ​​hitting the rear axle assembly. ”

Du Jiahai looked resentful: “Damn it, don’t let me know who did it! Or else he will look good!”

Li Weidong said: “I want to know who made the rear axle assembly. It’s very easy. I’ll know it after a call.”

I saw Li Weidong picking up the phone on the desk and dialing a foreign number.

After a while, the phone was connected, and Li Weidong said: “Hey, old Shen, it’s me, Li Weidong, it’s all okay, how about you?”

After a few greetings, Li Weidong asked: “Old Shen, in the past three months, has any company purchased a large number of agricultural vehicle engines from you? It is the kind of purchase that has suddenly increased. Really, Gufeng Group? Okay, I see.”

This call from Li Weidong was made to Shen Congzuo.

Two core components for agricultural vehicles, one is the rear axle assembly, and the other is the dedicated engine.

Maybe there are companies that can imitate the rear axle assembly, but the special engines for agricultural vehicles must be purchased from companies that specialize in engine production.

It takes a lot of technical accumulation to produce engines. If it is not a specialized engine company, it is difficult to make a special engine for agricultural vehicles.

Only Shen Congzuo produces special engines for agricultural vehicles on the market, so Li Weidong only needs to make a call to know which company is purchasing agricultural vehicle engines in large quantities recently.

After putting down the phone, Li Weidong asked Du Jiahai next to him: “Did the Gufeng Group buy a rear axle assembly from us recently?”

Du Jiahai thought for a while, then shook his head: “This Gufeng Group, I have some impressions, they have not purchased the rear axle assembly from us for several months.”

“It seems they are them.” Li Weidong then ordered: “I went to the market and bought a Gufeng agricultural tricycle. It will be produced on the latest date. We will see if we disassemble it.”

……

A Gufeng agricultural vehicle is placed in the workshop of the technical department. Several technicians are unloading the vehicle.

Currently, Fukang Agricultural Machinery has a group of technicians with university degrees, most of which are college graduates, and a few are graduates of undergraduates.

However, whether it is a college or a bachelor’s degree, they are all obtained through the adult college entrance examination.

In the past few years, Li Weidong paid for his employees to take the adult college entrance examination, and some employees successfully passed the exam. Now that they have all graduated, they have returned to Fukang Agricultural Machinery and become scientific researchers.

These workers who have returned from their studies have also greatly increased the scientific research capabilities of Fukang Agricultural Machinery. After all, college students were still very scarce at the time. Even if it is an adult college entrance examination, it is considered a highly educated person.

Du Jiahai next to    began to introduce Qigufeng Group.

“The predecessor of Gufeng Group was a tool factory. In the late 1980s, it merged with the local general machinery factory to form the Gufeng Group. It merged with the local tractor station three years ago and the local textile factory two years ago.

Gufeng Group is also involved in a wide range of businesses. In addition to agricultural vehicles and tractors, it also produces motorcycle parts, steel rims, paint coatings and glass. I heard that it plans to develop into the tire field. “Du Jiahai said.

“This Gufeng Group has great ambitions, but only this kind of ambitious enterprise is willing to take the money to invest in rear axle assemblies for agricultural vehicles. If you change to other enterprises, you will surely buy rear axles from us obediently. Assembly.” Li Weidong said.

At this time, the technician has dismantled the rear axle assembly of the Gufeng agricultural vehicle.

Du Jiahai stepped forward, took a closer look, and said, “Sure enough, it is an imitation of our rear axle assembly. Our first-generation agricultural tricycle uses this rear axle assembly.”

“That is the oldest rear axle assembly!” Li Weidong nodded.

Du Jiahai said, “The first agricultural tricycle used the first-generation rear axle assembly. Later, we produced more cargo-carrying agricultural five-wheelers, using the second-generation rear axle assembly.

Now our latest Fukang agricultural vehicle uses the third-generation rear axle assembly. As for the fourth-generation rear axle assembly, it has been developed for some time.

The rear axle assemblies we sell to other companies are currently the first and second generation rear axle assemblies. According to your instructions, the third generation rear axle assemblies are reserved for our own use. After the fourth generation is developed, Sell ​​the third generation. ”

Fukang Agricultural Machinery has been researching and developing the rear axle assembly. The main purpose is to improve the load and performance of the rear axle assembly, so as to allow agricultural vehicles to pull more cargo as much as possible, and to be more sensitive when braking, so as to improve the safety of agricultural vehicles.

In addition to self-use, the rear axle assembly will also be sold to other companies.

However, Li Weidong specifically ordered that the latest generation of rear axle assembly is reserved for Fukang agricultural machinery for its own use, and the rear axle assembly that is one or two generations behind will be sold.

Never sell the most advanced products, which is also a routine commonly used by technology-leading companies.

Li Weidong thought for a moment and said, “This Gufeng Group has mastered our first-generation rear axle assembly technology. It should be developing the second generation now. Maybe it won’t be long before they can also develop the second-generation rear axle assembly technology. Rear axle assembly.”

“Dong Li, what should we do? Shall we start selling the third-generation rear axle assembly?” Du Jiahai asked.

“No! The third-generation rear axle assembly is the latest model we have, and it is also our hole card, which cannot be brought to the market. How can it be revealed from the beginning.”

Li Weidong shook his head, and then said; “But we cut the price, the first-generation rear axle assembly, the price is reduced by 30%, and the second-generation rear axle assembly, the price is reduced by 20%.”

“The price is reduced by 30% and 20% respectively, which is already close to our cost price.” Du Jiahai said.

“It’s okay, small profits but quick turnover, as long as there is a profit!” Li Weidong continued: “And Gufeng Group has already made the first generation of rear axle assembly. If we don’t reduce the price, customers will go to Gufeng Group to buy it. Then it’s our turn!”

“Then the price of the first-generation rear axle assembly will be reduced. Why should the second-generation rear axle assembly be reduced by 20%?” Du Jiahai asked puzzled.

Li Weidong smiled helplessly, this Du Jiahai really didn’t have the slightest management mind.

Then Li Weidong continued to explain: “The first-generation rear axle assembly is reduced to the cost price range to let Gufeng Group know that even if you develop the first-generation rear axle assembly, you should not expect to make money through this.

The price of the second-generation rear axle assembly is also to tell Gufeng Group, don’t spend money on research and development, you spend money on research and development, you can’t get the cost back at all, it is better to find us to buy the finished product!

Gufeng Group is an ambitious company with R&D capabilities. If it is allowed to develop, it will become our competitor in the future. Therefore, we need to use some means to stifle the research and development of Gufeng Group in the cradle! ”

……

Gufeng Group, Chairman Huang Baifa is inspecting the group’s scientific research station.

The predecessor of Gufeng Group was a state-owned enterprise, and Gufeng Group has merged several state-owned enterprises all the way to this day.

The advantage of state-owned enterprises is that it is easier to recruit highly educated talents. In the era of undergraduate package allocation, larger state-owned enterprises were able to obtain a few college student places each year, and enterprises naturally had R&D capabilities.

So the Gufeng Group’s scientific research station gathered more than a dozen college students, in addition to one postgraduate with a master’s degree, which was absolutely rare at the time.

However, Huang Baifa is not satisfied with this. He has begun to contact the education department, hoping to cooperate with a nearby university to establish a graduate research station.

In that era, it was rare to see leaders of state-owned enterprises with such vision and courage.

It is precisely because of Huang Baifa’s vision that he can turn an ordinary tool factory into a Gufeng Group that spans multiple fields.

Three years ago, the local tractor station was difficult to operate and was merged by the Gufeng Group. Then Huang Baifa learned that the tractor station closed down because it was unable to compete with agricultural tricycles, so Huang Baifa started the idea of ​​producing agricultural tricycles.

However, the two core components of agricultural tricycles, the special engine and the rear axle assembly, were not produced by Gufeng Group. In the end, Huang Baifa had to spend money to buy them like other companies.

Huang Baifa also understands that if you want to make a good product, you cannot lack core technology. And after some research, he found that the rear axle assembly of agricultural vehicles is very profitable, so he decided to develop his own rear axle assembly.

According to Huang Baifa’s plan, if the rear axle assembly can be developed, not only can it be used by itself, but it can also be sold to other companies to make a fortune. It is definitely a good deal.

So Gufeng Group invested heavily in the research and development of the rear axle assembly of agricultural vehicles.

Gufeng Group originally has good scientific research capabilities, coupled with the investment of funds, after more than two years of research and development, it has really made the rear axle assembly of agricultural vehicles.

However, the performance of the rear axle assembly of Gufeng Group is far inferior to the rear axle assembly of Fukang Agricultural Machinery.

Fukang Agricultural Machinery researched and developed the rear axle assembly earlier. In addition, Fukang Agricultural Machinery was the first-generation technology directly imported from Japan, eliminating the need for basic research and development. Therefore, Fukang Agricultural Machinery’s rear axle assembly technology naturally requires More advanced.

But Huang Baifa is not discouraged by this. He believes that with the R&D capabilities of Gufeng Group, as long as it continues to increase R&D investment, it will definitely surpass Fukang Agricultural Machinery in the future.

As expected by Li Weidong, the current Gufeng Group is indeed developing the second-generation rear axle assembly.

Looking at the busy researchers, Huang Baifa nodded in satisfaction.

“Recently, our scientific researchers have been working hard. Many researchers work overtime until the evening. They inform the cafeteria and leave a cook on duty at night. If the scientific researchers are hungry and want to eat something, they can go directly to the kitchen to order food and let the kitchen start a small stove!” Huang Baifa opened his mouth and ordered.

I heard that there was a small stove to eat, and the researchers around were immediately full of enthusiasm.

At this moment, the sales manager of Gufeng Group hurried over.

“Chairman, Huaiyang Agricultural Machinery Factory just called and said to cancel the order for the rear axle assembly.” The sales manager said.

“Cancel the order? Why? Hasn’t it been negotiated before?” Huang Baifa asked with a puzzled face.

The sales manager immediately replied: “Manager Song from Huaiyang Agricultural Machinery Factory said that the price of the rear axle assembly of Fukang Agricultural Machinery has been reduced by 30%, and the price is cheaper than ours!”

“30%?” Huang Baifa was shocked: “How to reduce so much? Wouldn’t it be sold at a cost price!”

“Chairman, do we want to lower the price?” the sales manager continued; “If we don’t lower the price, customers will go to Fukang Agricultural Machinery.”

Huang Baifa frowned immediately. Although the price cut by 30% would not be a loss, he would certainly not make any money.

However, considering the R&D cost invested before, if the rear axle assembly cannot make money, then the previous R&D investment will be completely lost.

But without reducing the price, none of the rear axle assemblies produced by Gufeng Group will be sold.

Huang Baifa suddenly felt that he was in a dilemma.

But what is certain is that the plan to use the rear axle assembly to make money is a waste.

“This Fukang agricultural machinery will really pick the right time. When we did not develop the rear axle assembly, you did not reduce the price. We just developed it, and you will reduce the price immediately. This is deliberately crushing me!”

Huang Baifa clenched his fists angrily, and then resolutely said: “Our technology is backward, and the result is controlled by others. To avoid this situation, we must speed up the progress of research and development. As long as we achieve a technical overtake, we are not afraid of being overtaken by others. Let’s squeeze, we can squeeze others in turn!”

However, the sales manager next to him seemed hesitant to talk.

“Anything else?” Huang Baifa asked.

“Chairman, I went to find out that Fukang Agricultural Machinery not only reduced the price of the first-generation rear axle assembly by 30%, but also reduced the price of the second-generation rear axle assembly by 20%!” the sales manager said.

“The price is also reduced?” Huang Baifa was taken aback again. Isn’t this second-generation rear axle assembly being developed by Gufeng Group!

Huang Baifa surprisingly discovered that even if the second-generation rear axle assembly is successfully developed, it will not make any money at the market price after the price has been reduced, but will lose research and development expenses.

So, if you spend money on research and development, it is better to find Fukang Agricultural Machinery to buy the finished product!

Since it is more cost-effective to buy finished products, and R&D will lose money, why waste manpower and material resources in R&D?

This idea flashed through Huang Baifa’s mind. In the next second, he immediately understood the intention of Fukang Agricultural Machinery.

“I see, the reason why Fukang Agricultural Machinery’s price is cut is to stifle our technology research and development!”

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(End of this chapter)