industrial overlord

Chapter 533
"Let's talk about the threat first. As I said just now, due to the impact of the financial crisis, the Japanese yen and the Korean won have begun to depreciate, which will lead to a decline in the prices of Japanese and Korean machine tools. In addition, in times of crisis, various companies will reduce profits. It is expected that they are not seeking to make money, but to protect their capital. In order to increase sales, they may also take the initiative to lower prices and compete with us." Lin Zhenhua analyzed.

"So, what about the opportunity?" Gu Jiahua asked.

Lin Zhenhua said: "Opportunities mean that these companies are now facing financial difficulties. They are eager to recover funds from the market, and it is difficult to bear high losses. In this way, if they want to fight a price war with us, it is inevitable We will look forward and backward, and dare not entangle with us to the end. We should grasp this mentality of the other party, and put on a posture of being willing to fight with the other party, and the other party will naturally be timid. This is a good opportunity for us to regain lost ground .”

Lin Zhenhua's words are very simple, but these people present are thinking about market trends every day, and there is no need to beat the drum with a heavy hammer. Lin Zhenhua breaks it lightly, and everyone will understand.

The current situation is like this. Regardless of whether Chinese machine tool companies plan to sell at lower prices, machine tool companies in Japan, South Korea, and Taiwan will definitely cut prices to grab the market.Instead of passively fighting, it is better to take the initiative to attack, and once the competition starts, it is necessary to fight until the opponent has no power to fight back.

"Hehe, Xiao Lin always sees problems better than others, I admire, admire." Gu Jiahua said, slapping his hands lightly.

Lin Zhenhua waved his hand and said, "Just kidding, just kidding, I'm just throwing bricks to attract jade. These views were put forward by the marketing department of our group. By the way, Director Huang Gang of the State Planning Commission also has the same views. On this issue, I will go to I discussed with him, and he also thinks that this is a good opportunity for our Chinese machine tool industry."

"Huang Chu is Director He's proud apprentice, young and promising, with extraordinary knowledge." Li Mozi said, "Has he ever mentioned what the Planning Commission thinks about the current economic situation?"

Dr. Huang Gang was left to work in the State Planning Commission after graduation, and was soon promoted to be the director of policy research.It is said that he is the behind-the-scenes writer of many macroeconomic policies issued by the Planning Commission, so Li Mozi is particularly concerned about Huang Gang's views on this matter, because these views may eventually become official documents of the Planning Commission.

Lin Zhenhua said: "The planning committee has to consider many issues. In addition to purely economic factors, they also have to take into account the country's diplomatic strategy. From a macro perspective, we are still implementing the principle of keeping a low profile and biding our time. However, Huang Gang also said that the State Planning Commission will not object to certain industries adopting some industry-specific measures, and may even provide some support.”

Everyone knows the principle of keeping a low profile.Due to the disintegration of the Soviet Union, China has become the last major country in the eastern camp. If it acts in a public way, it will inevitably lead to full containment by the Western camp headed by the United States.Under such circumstances, the central government has put forward the policy of keeping a low profile and never showing up, trying to avoid causing trouble and gaining time for stable development to the maximum extent possible.The image of the so-called "little white rabbit harmless to humans and animals" was formed during this period.

Huang Gang's words relayed by Lin Zhenhua revealed two pieces of information.One is that during the Asian financial crisis, the country will not adopt aggressive policies from a macro perspective, but should act as a responsible major country to win the trust of countries in Southeast Asia and East Asia.The second is that the state does not object to some specific industries acting according to their own conditions. Of course, the degree of action still needs to be carefully considered.

As an official of the ministry, Li Mozi naturally understands this kind of official rhetoric the fastest. He nodded and said: "Since the planning committee has such spirit, and Mr. Lin gave us such an incisive analysis just now, then our machine tool The strategy of the industry is very clear. I think we should seize the opportunity, attack boldly, and fight for a turnaround.”

"I don't think there's a problem!" Bao Guangming agreed first, and his emotions were also mobilized.When Lin Zhenhua proposed to reduce the price by 30%, Bao Guangming felt a little bit pained, but after serious thinking just now, he felt that this plan was not so terrible.If companies such as Japan and South Korea can really be squeezed out of the market, then the lost profits may not be impossible to make back.

Price wars are often used in business.In order to beat your competitors, you can lower the price of your product to the point of losing money. As long as you can hold on, you can raise the price after the opponent collapses. At that time, your product is in a monopoly position. What price? Isn't it all up to you?Of course, it is also skillful to raise the price after the price is reduced. You cannot directly raise the original product price again, which will easily lead to customer dissatisfaction.You can discontinue the original product, launch an improved version, and raise the price while you're at it.This kind of trick is not unfamiliar to everyone.

"Mr. Lin, tell me, what should we do? We just follow your instructions." Meng Zhenya and the others also figured it out, and said to Lin Zhenhua together.

Lin Zhenhua said: "I don't dare to take instructions or something. I only have a little immature idea. Let's discuss it together. We have analyzed it before, and now is a very good opportunity. If we seize this opportunity , it is possible to deal a fatal blow to Japanese and Korean machine tool companies, making them unable to recover for at least a few years.

My idea is this, all the bosses present here should work hard after returning home, carefully calculate the cost of the company's products, and estimate an acceptable price reduction.Then, according to the calculated results, we gradually lowered product prices in stages, squeezed the market of Japanese and Korean companies, and forced them to fight a price war with us. "

"Gradually reduce the price? What does this mean?" Bao Guangming asked a little puzzled.

Lin Zhenhua said: "Director Bao, think about it, if we reduce the price by 30% in one step, what will Japanese and Korean companies do?"

Bao Guangming said: "They must have surrendered right away. I just calculated, and they can't afford a 30% drop anyway."

"That's right." Lin Zhenhua said, "If we lower the price by 30% at once, the other party will definitely not fight back, but will directly withdraw and let us play a one-man show, so we will suffer too much. Our price reduction is not only It is to grab the market, but also to drag the opponents into the water and let them drown."

"I understand." Meng Zhenya interjected, "Boss Lin, does it mean that we hold down the cards and drop the cards by 5% or 10% first, so that the other party thinks it is possible to fight us. They must They are not willing to let the market out like this, so they will also lower prices with us. After they are in place, we will then lower them by 5% to lure them to follow. In this way, they will be dragged into the water by us.”

"No way, this is too dark, right?" Bao Guangming also reacted.

According to Lin Zhenhua's thinking, Japanese and Korean machine tool companies have to participate in the war.Chinese machine tool companies lower their prices by about 10%. If Japanese and Korean companies do not follow suit, the market will be taken away by Chinese companies, and at such prices, Chinese companies can still maintain profitability.In order to keep the market, Japanese and Korean companies can only lower prices accordingly, and this has begun to play tricks.

After Japanese and South Korean companies lower their prices, Chinese companies will then drop another 10%. At this time, the other party will be in a dilemma.If you continue to follow up, you may face losses.But if you don't follow up, the previous price reduction results will be wasted again.In this dilemma, if Lin Zhenhua plays some tricks to make the opponent feel that there is an opportunity to take advantage of it, and continue to go down with a fluke mentality, he will eventually be dragged into the water.

Compared with the one-step price reduction, Lin Zhenhua's idea is indeed much darker.If Chinese companies cut prices alone, and Japanese and Korean companies do not follow suit, then although Chinese companies can gain a larger market share, they will inevitably give others the impression of low-end products.It is different to pull Japanese and Korean companies to cut prices together. Everyone is cutting prices, which means that everyone's products are almost small. In the end, Japanese and Korean companies can't afford a larger price cut and quit midway, which is regarded as a foil for Chinese companies.

In addition, the product lines of Chinese companies and Japanese and Korean companies do not completely overlap, especially in terms of high-end machine tools, Japanese and Korean companies can still retain some shares.If Japanese and South Korean companies cut prices on low-end products, high-end products must also have something to say, otherwise it will cause customer dissatisfaction.Therefore, Lin Zhenhua's strategy is to force Japanese and Korean companies to reduce product prices across the board. When the dust of this price war settles, Japanese and Korean companies will find that they have not only lost the low-end market, but also the only remaining high-end market. Profits have also shrunk sharply.This achieves Lin Zhenhua's idea of ​​not only grabbing the market, but also letting the other party bear the loss.

Gu Jiahua was born as a government official and has not been in business for a long time, so she still can't understand these tricks all at once.However, there is no shortage of courteous people around him, Gu Jiahua finally figured out Lin Zhenhua's train of thought after talking to him like this.He pointed at Lin Zhenhua and said with a smile, "Xiao Lin, I really can't see that you are such a cruel person."

"This... should be called resourcefulness, right?" Lin Zhenhua replied boldly.In his heart, he was quite proud of his strategy.

"I remember, I hope our two companies won't become competitors in the future." Gu Jiahua said, "I figured it out, the scariest thing in this world is to become rivals with you."

"Mr. Gu, you left out one more thing. The happiest thing in the world is to be friends with Mr. Lin." Bao Guangming laughed and flattered Lin Zhenhua heavily.

(End of this chapter)