Chapter 493: Elites
"Our profitability in the first half of the year is still good, and the headquarters has affirmed our work. Pen "Fun" Pavilion www.biquge.info"
Motorola China Office was established in 1987. In just six months in 1987, the total amount of trade sent by the office to Motorola reached $5 million.
By the first half of 1988, that number had doubled. In just six months, the office has received trade orders worth 10 million US dollars.
Motorola is becoming China's go-to company for importing electronic products from the United States, chips, pagers, walkie-talkies, wireless communication equipment, and its largest customers come from the Ministry of Posts and Telecommunications.
It is a little regrettable that Motorola has lost the program-controlled switch market of China's post and telecommunications department -- in fact, almost all foreign-funded enterprises have lost China's program-controlled switch market.
China is a latecomer in program-controlled switching technology, and now their level can almost reach the first-class level of the same industry in the United States, and the price is only one-tenth of it.
The world switch market has not tasted the power of China's switches, and that is entirely because the Chinese market has not yet been filled.
Not to mention the disappointing program-controlled switch market, Motorola has created a new profit growth point in China in the past two years - BP machine.
This kind of electronic product that became popular in the United States in the sixties, and Motorola has accumulated a deep technical advantage in it.
In the past two years, the number of pagers imported by Chinese has increased year after year, and in the second half of last year, through the contract signed by the office, the number of imported machines reached 50,000 units. This year, that number is still increasing at a high rate.
Obviously, thanks to the rapid economic growth, Chinese are bursting into huge demand for mobile communications.
"Everyone knows very well that our performance this year can get such a big increase, mainly because of the profits brought by BP machines. The company intends to increase its efforts to promote BP machines in China, and the last year and a half of the eighties are crucial for us. β
"The reason is simple β we have a competitor, ST Group. β
The person who spoke was a young man in a well-dressed suit and dressed quite exquisitely. He wore a pair of gold-rimmed glasses, his hair was meticulously combed with hairspray, and his whole body smelled of an elite.
This person is the head of Motorola's office in China, Lu Jing. Of course, when he was in the company, he preferred to be called Jim Lee.
The International Hotel Conference Center was half a floor of Motorola, and from the perspective of Lu Jing, oh no, Jim Lee, looking out of the window is Jianguomen Inner Street, the most central area of China.
This kind of vision always gives Jim Lee a kind of pride in creating history, as if he is the Chinese "Perry" in the 80s.
Which Perry? That's the Perry of the Japanese Black Ship.
And Motorola's China office is like a black ship coming to Japan, bringing the baptism of the developed world to this country.
It's like after the Black Ship Incident, Japan had to go through the War of the Fall to be civilized.
Jim Lee wants to bring Motorola's advanced products to China, but also to eliminate the last bit of resistance in this country.
"Beat our old friend, ST Group. We will be able to occupy China's BP machine market and earn us billions of dollars in profits in the future. And if we failβ"
Jim Lee's eyes swept over the conference room, and he said expressionlessly: "Everyone here far exceeds the salary of ordinary Chinese, so you can only say goodbye." β
National ministries and commissions, foreign-funded enterprises, these are the two most ideal places for China's outstanding talents in this era.
The basic salary of every Chinese regular employee in Motorola's China office in China starts at 800 yuan. Nowadays, the salary of those who can walk into this conference room is not less than 1,000 yuan.
And some people even get paid in dollars -- Jim Lee, for example.
It is precisely with such a high income that foreign-funded enterprises will become the place where the best talents in the imperial capital flock to the vulture.
But because of this, losing such a job is a very difficult thing for these people to accept.
"Since the Spring Festival this year, ST Group has announced that they have mastered pager technology. So far, there is only one pager on the market, and I'm afraid I can only think that they haven't used their full strength. β
"But even so, the Chrysanthemum pager still had a strong impact on our market. It's just because the growth rate of the BP machine market this year is amazing, which is not reflected in the sales data. But from our customer feedback, it seems that as the market network and production capacity of chrysanthemum pagers increases, they will soon pose a mortal threat to us. β
Someone raised their hands and expressed a different opinion: "Our products are better, after all, Motorola's technology and decades of accumulation will definitely be more advanced than the technology of ST Group, right?"
As soon as the man finished speaking, someone shook his head and retorted: "But the price of the chrysanthemum pager is lower, our products generally cost seven or eight thousand in the market, and the unified price of their pager is three thousand eight hundred and eighty-eight yuan." The difference in selling price is almost doubled, which is crucial. β
"Then we'll cut the price too?"
As soon as this opinion came out of the mouth of this person just now, it was immediately watched by the whole conference room.
Motorola's products are taxed in China, and the tax on electronic consumer goods has at least doubled the price of Motorola's BP machines, which is comparable to the tax rate on imported cars.
With such a home field advantage, it is self-defeating to fight a price war with Xinke Company, not to mention the cost advantage of Made in China.
"Actually, it's not impossible, after all, our profit margins are very large. Jim Lee thoughtfully: "Now our shipment price for a BP machine is two hundred dollars, but the actual cost of the company does not exceed fifty dollars. β
"And how much do we get down? a hundred dollars?"
"No, even if we drop to a hundred dollars, our products will still be sold at the current price in the market. Obviously, among the elites in the conference room, there are still people who have a good idea of the current market situation: "Dealers will swallow the difference in the middle into their stomachs." For the Chinese, imported products are worth this price. β
Everyone knows who the dealer is, and at present, Motorola's BP machine mainly relies on the online store of the Post and Telecommunications Bureau to distribute goods. However, compared with the Ministry of Posts and Telecommunications, it is obvious that Motorola does not have the slightest ability to restrain it.
The Ministry of Posts and Telecommunications is certainly more willing to maintain the price at the current level. All the excess profits are used to increase the number of calls and paging coverage.
This is determined by the functions of the Ministry of Posts and Telecommunications, and it is not something that can be changed by any bureaucrat.
"You're wrong, I mean, the key to our disadvantage now is that our products are imported, and at least half of the cost is import tax. β
Jim Lee's ability is undoubted, otherwise he would not be in his current position: "The technology for the production of BP machines is actually not a new technology, Motorola mastered it in the sixties. β
He thought for a while, and then continued: "For this kind of technology that the Chinese have mastered, the company will not cherish itself. Let's think about it another way, what if our products are made in China?"
"But now China has very strict management of foreign-funded factories, and it is impossible to be wholly owned, and the joint venture is at least 50% for the Chinese side. "This is the office's legal adviser, and he's dedicated to the obnoxious dissenting role.
Of course, he could get paid a lot of money by doing thisβa jealous guy.
"No, not a sole proprietorship, no joint venture. Jim Lee shook his head: "We authorize production." β
"Authorized production!"
"Well, my intelligence shows that earlier this year, ST Group invited a number of companies to visit its paging system and put it into commercial use. β
"Later, none of these companies agreed to the cooperation of ST Group, because they made a very difficult requirement that they must pass the supplier certification of ST Group," said Jim Lee. β
It's not a secret, it's actually pretty much all over the radio and electronics industry.
Some people are surprised by ST Group's insistence, others are seriously thinking about how to pass the certification, and some people are delusional about obtaining production technology through administrative pressure.
Well, this last kind of person, whether it is the route of the Ministry of Posts and Telecommunications or the route of the industrial system, has been "taught to be a man" by reality later.
After all, administrative pressure? Hu Wenhai? Just kidding.
"I've looked at ST Group's supplier certification terms. The in-house counsel continues to show his presence: "I feel like it sets a standard that not many companies in the U.S. can achieve. β
"Yes, Xiucheng Electronic Computer Company can't fully meet the standard, and Ran Ni obviously gave Hu Wenhai the back door. β
In the conference room, there was a burst of obscene laughter.
"Because of this, ST Group has offended many companies. Jim Lee also laughed twice, then reined in, and continued: "What if we license the production technology of BP machines to these Chinese companies?"
"Then our BP machines will not be able to be sold, and the market will be crowded with pagers produced by China itself. β
"We don't license the technology that Motorola uses now, we license them to produce the antiques from the '60s. β
Jim Lee's eyes flickered: "Although the market will be crowded with domestic pagers at that time, the reputation of Chinese-made pagers will be completely finished." In the eyes of the Chinese, Motorola will be synonymous with advanced products, and domestic - "
"The domestic one becomes garbage, and the Chrysanthemum brand pager is also domestic. β
"Yes, I remember there's an old saying? β
"If you oppose the right, I will expand it. If you break the four olds, I will smash and rob them. If you want to support domestic production, I will smash the market. High! It's really high!"
(To be continued.) )