Rebirth of the Industrial Tycoon - Vol 2 Chapter 463

Chapter 463 Opens the era of the three bungee

Gufeng Group’s meeting room, Huang Baifa convened the group’s leading cadres to discuss countermeasures.

After briefly narrating the price reduction of Fukang Agricultural Machinery, Huang Baifa said: “This is the situation. Today’s meeting is mainly to discuss whether our group should continue to invest in the rear axle assembly project.”

Everyone bowed their heads, no one spoke, Huang Baifa had to call out: “Manager Wang, you are in charge of research and development, let’s talk about it first!”

The manager surnamed Wang gave a dry cough and said, “The rear axle assembly of agricultural vehicles is a new project for us. I personally participated in the entire R&D process.

In order to develop the rear axle assembly, the group has invested more than 5 million yuan in funds. The scientific researchers have worked overtime and overcome many difficulties. Finally, phased results have been achieved and the first generation of rear axle assembly has been successfully developed. become.

Now our scientific researchers have begun to research and develop the second-generation rear axle assembly. If R&D investment is stopped, the second-generation rear axle assembly will definitely not be made.

More importantly, our previous technical accumulation in the development of the first-generation rear axle assembly was all wasted. The first 5 million investment was wasted, and all the hard work of scientific researchers was wasted day and night. ”

Manager Wang is responsible for research and development, and naturally does not want the project to be cut off.

Someone next to    said, “But this project can no longer bring profits to the group. The reason why the group was willing to invest in the rear axle assembly project before is that this project can bring huge profits to the group.

Now Fukang Agricultural Machinery has reduced the price of the first-generation rear axle assembly by 30%, which is equivalent to selling at a cost price. At such a price, there is no profit at all, and it can only be regarded as a guarantee.

More importantly, the second-generation rear axle assembly of Fukang Agricultural Machinery has also been sold at a price cut of 20%. Even if we successfully developed the second-generation rear axle assembly, it is no longer profitable.

If you continue to invest in this project, it is tantamount to wasting millions of scientific research funds, so I think that this project should be suspended immediately and the loss should be stopped in time! ”

With these two people, everyone expressed their opinions.

“This project has spent 5 million, but it did not bring profit to the group. If it continues, it will burn money. I think this project should be terminated.” Someone said.

“It seems that the research and development of the rear axle assembly is indeed burning money. This is mainly because our technology is not good enough. Once our technology is upgraded and reaches the domestic advanced level, it will definitely be profitable.” Another person retorted. .

“Then you have to cross the level of Fukang Agricultural Machinery. The agricultural tricycle is made by Fukang Agricultural Machinery. They have been making rear axle assemblies for some years, and their technology and experience are more abundant than ours.”

“Yes, this time the price of Fukang Agricultural Machinery has been reduced. It is clear that it is for us, so that our early investment of 5 million yuan has all been lost.”

“So as long as we catch up with the technology of Fukang Agricultural Machinery, we don’t have to worry about getting stuck. As far as I know, the rear axle assembly sold by Fukang Agricultural Machinery is only one generation more advanced than ours. We work hard. , We can still catch up.”

“Really? But according to the information I have, Fukang Agricultural Machinery’s latest model of agricultural vehicles is already using the latest generation of rear axle assembly, which is much better than the second-generation rear axle assembly they sell now. And I suspect that they have a better rear axle assembly.”

“Fukang Agricultural Machinery has been developing rear axle assemblies for so many years. No one knows how far the technology of Fukang Agricultural Machinery is. If their technology is really much ahead of us, if we develop a generation of products, they will reduce the price of a generation of products. It is always us who suffer at that time.”

People discussed for a long time, and they were roughly divided into two factions.

One is to continue research and development. This faction believes that since the five million R&D expenses have been smashed, if we stop now, all the previous R&D investment will be wiped out.

The other faction thinks that continuing research and development is losing money. Even if the research and development is successful and a new rear axle assembly is made, once the price of Fukang Agricultural Machinery is reduced, Gufeng Group will still not make a profit. Therefore, you should stop immediately to avoid greater losses in the future.

Everyone was arguing for a long time, but finally turned their attention to Huang Baifa, and he had to finally decide on this kind of thing.

Huang Baifa at this time has a plan in mind.

I saw Huang Baifa sighed and said; “This time the rear axle assembly project, the R&D department has indeed made great efforts and achieved fruitful results. It is considered to have successfully completed the tasks delivered by the group.”

Huang Baifa’s remarks are equivalent to affirming the contribution of the R&D department first, and it is clear that the failure of the project is not the problem of the R&D department.

Then he changed his voice and continued: “But this project did not achieve the expected benefits. I think this is mainly due to the suppression of competitors, not the mistakes of the group’s decision-making.”

Huang Baifa’s sentence directly threw the pot to Fukang Agricultural Machinery.

I have to say that Huang Baifa did have some means. He encountered setbacks and found a foreign enemy to take the back of the pot. Not only did he let his men breathe a sigh of relief, but also promoted internal unity.

Huang Baifa went on to say; “This time the competitor’s suppression of us came very suddenly for us, but I guess the other party must have made sufficient preparations, so it made the move.

The so-called knowing ourselves and the enemy, we can never fail in a hundred battles. Now we can’t control the situation of our opponents, but our opponents have come prepared. If we continue, the situation we face will definitely be very passive.

Our group is also building a tire production line. In the future, the focus of the group will also be on the tire business. So in order to avoid distraction, I think we can suspend the development of the rear axle assembly first! ”

Huang Baifa’s words are tantamount to a final decision, confirming that Gufeng Group will suspend the research and development of the rear axle assembly.

……

What Li Weidong used was entirely Yangmou. Even though Huang Baifa had seen through Li Weidong’s intention, he had no way to deal with it.

On the surface, Li Weidong is fighting a price war, reducing the rear axle assembly to the cost price. Everyone should not make money. It is equivalent to killing one thousand enemies and self-defeating eight hundred.

But in fact, Fukang Agricultural Machinery uses this method to stifle future competitors in the cradle.

Once the rival falls, Fukang Agricultural Machinery can continue to monopolize the market of rear axle assembly.

This trick is indeed very effective. Huang Baifa saw no profit, so he terminated the research and development of the rear axle assembly.

As long as you can’t make it, I will sell it at a high price and make a lot of money; and once you make it, I will immediately lower the price and run it against you, making your research and development in vain. This is a routine used by enterprises in developed countries.

A certain technological product, when monopolized by enterprises in developed countries, will definitely sell at a high price.

High prices mean high profits, and such high profits will also attract other companies to enter this field.

It is precisely because the profits are high enough that companies that want to enter this field will be willing to spend a lot of money on research and development.

Of course, the original monopoly will not sit back and watch the emergence of competitors, so when a competitor’s R&D has achieved certain results, the monopoly will decisively cut prices.

In this way, product profits will also be greatly reduced. Those companies that spend money on research and development find that they are not as profitable as they used to be, and it is better to buy directly for their own research and development, so they will stop research and development and switch to purchase.

Once the research and development is stopped, the road to higher-end will be cut off, and the future can only continue to spend money to buy.

Developed countries have used this trick to kill many R&D companies in their infancy.

For example, some South American countries, as well as some Central and Eastern European countries, are not originally poor countries, and the level of compulsory education is relatively high, and they all have certain research and development capabilities.

But in the end, the scientific research enterprises in these countries all failed in the process of growth.

Brazil, Argentina, and Chile in South America, Serbia, Poland, Belarus and other countries in Europe, all have good industrial systems. A closer look at their industries is quite complete, and there are almost all industries that should be.

The education system of these countries is also very complete, from compulsory education to higher education, there is no shortage at all, and they have the ability to provide the country with corresponding talents.

However, the manufacturing industry in these countries has always been in the second-rate world, and it is difficult to find a top 500 manufacturing company in these countries.

The reason for this is that companies in these countries have never been able to go to the high end. Every time they start to engage in research and development, they will be suppressed by companies in developed countries.

A product price reduction will not only seize the market, but also make your R&D investment worthless.

In the process of growth, Chinese companies often encounter the same routine.

Whenever Chinese companies are about to make breakthroughs in R&D, foreign companies will inevitably start to cut prices.

However, this routine is often ineffective for Chinese companies.

Because the R&D of Chinese companies is different from that of foreign companies. The R&D of foreign companies is mainly for obtaining economic benefits, while the R&D of Chinese companies is mostly based on strategic considerations.

For the sake of economic benefits, companies are unwilling to spend money on R&D as long as they can’t make money.

For strategic considerations, it doesn’t matter whether you make money or not. First of all, you must make the product and don’t get stuck.

Take the lithography machine as an example. Not only is the price of the Dutch AMSL28nm lithography machine high, but also the full payment must be paid in advance. Even if the money is paid, it will take a long time to pick up the goods. If Chinese companies want to buy, they have to beg others to sell.

Later, Shanghai Microelectronics made a breakthrough with 28-nanometer lithography machines. China was able to manufacture 28-nanometer lithography machines on its own, so AMSL immediately announced a 28-nanometer lithography machine price cut.

Moreover, the full prepaid payment is no longer received, and there is no need to wait for the delivery. Then, in the name of showing good to China, it is actually suppressing the domestic lithography machine.

AMSL certainly hopes that Chinese lithography machine companies will stay at the 28-nanometer stage and stop continuing to upgrade their technology, so that AMSL can continue to monopolize the higher-end lithography machine market.

Under normal circumstances, this trick will work. As a company, a product that has spent huge sums of money on research and development cannot make a profit or even lose money. No one is willing to continue to do more in-depth research and development.

In fact, this is true. After the price of AMSL28nm lithography machine is reduced, it has indeed seized a large part of the market, causing hundreds of millions of losses to Shanghai Microelectronics.

I changed to another company, but lost hundreds of millions of new products after researching and developing new products. I will definitely not continue to do it.

But Shanghai Microelectronics is different, they have not stopped the pace of research and development.

This is not because of the top microelectronics, but because the microelectronics is a state-owned enterprise.

Moreover, Shanghai Microelectronics is not fighting alone. Behind Shanghai Microelectronics is the National Integrated Circuit Industry Base, the National Semiconductor Industry Base and the National 863 Information Achievement Industry Base.

The development of lithography machines is a matter of national strategy. Although this work is done by the enterprise, it will never stop the pace of research and development because of the loss of several hundred million.

This can be regarded as an advantage of the system. State-led scientific research will not be abandoned halfway due to external factors. This model may not be the most efficient, but it must be the most effective!

……

Du Jiahai walked in with a smile on his face and said, “Chairman, Gufeng Group’s order is here! They are purchasing the second-generation rear axle assembly this time.”

“It seems that Gufeng Group has surrendered.” Li Weidong breathed a sigh of relief.

Annihilated a competitor, Li Weidong felt relieved.

In fact, Li Weidong is also very worried. In case of encountering a tough opponent, it is still very troublesome to be tough.

However, this incident also gave Li Weidong a sense of crisis. As the market becomes more and more free and open, competition will become more and more fierce.

Fukang Agricultural Machinery wants to survive the fierce market competition, it must not be complacent, it must be pioneering and enterprising.

However, the background of Fukang agricultural machinery is too thin after all. In the field of traditional agricultural machinery, there is no advantage at all. You can only rely on the emerging product of agricultural vehicles to get a share of the market.

“Nowadays, the entire business of Fukang Agricultural Machinery revolves around agricultural vehicles. The product is single, and the market it faces is also single. This is not suitable for the development and growth of enterprises. To develop new products and open up new markets, it is necessary to It’s on the agenda!”

Thinking of this, Li Weidong showed a firm expression.

Li Weidong has always wanted to make a product, but after considering various aspects, he has not decided whether to make it or not.

Now the incident of Gufeng Group has affected the survival of Fukang Agricultural Machinery, but it made Li Weidong made up his mind.

I saw Li Weidong take out the key, opened a locked file cabinet, took out a folder from it, and handed it to Du Jiahai.

“Lao Du, here is a task for you to transform our agricultural tricycle according to the above design and make a finished product!” Li Weidong said.

Du Jiahai took the folder, saw the drawing inside, was taken aback.

There are several drawings given by Li Weidong, but they are always the same. They all refit the bucket of the agricultural tricycle from the original cargo box to a tin shed with rows of seats.

So Du Jiahai asked curiously: “Chairman, is this thing to attract people?”

“Yes, it is specially used to pull people.” Li Weidong nodded, and then said; “It’s time to start the era of Sanbangzi!”

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(End of this chapter)