Chapter 248: Transformation of the Computer Garden

The change of Computer Park is not only a simple increase in the total number of branches, but more importantly, a change in the internal quality. When Li Xuan first acquired the computer park in 1980, the proportion of the company's self-operated stores was very small, and the main way to expand was to use the means of charging to join.

In this way, the scale of each branch is different, and the quality of service is uneven, which is not conducive to the establishment of the company's brand and the unified management of the company in the long run. Therefore, after Li Xuan completed the acquisition, he began to actively change the original development strategy. Large-scale investment in the construction of large-scale direct stores, eliminate a number of small-scale, unreasonable layout of franchise stores, and build a sound logistics and warehousing system.

In the early 1980s, Li Xuan spent only $33 million when he acquired the computer park company. In the past two years, the follow-up investment of the Eastern Group in the company has reached 200 million US dollars. In addition, after the listing of Aikang Computer Company last year, it took out 50 million pounds to inject capital into the computer park company.

You must know that the total global retail scale of the personal computer industry this year is only 4 billion US dollars. However, the computer park company has invested more than 300 million US dollars in two years, and it is impossible to break even by relying on sales revenue alone. It is arguably the largest cash funnel in the Eastern Group, constantly eating up the profits of other companies.

Since the launch of the ERM-1 processor last year, with the sales of personal computers using the ERM-1 processor such as ABC-3 and ABC-P4 have begun to explode, the financial situation of the Oriental Research Institute, another big money-consumer under the Dongfang Electronics Company, has begun to improve rapidly. The new architecture MIPS commercial processor S-100 is also on the market with the launch of Aikang's CW-8203 workstation. Began to create a steady stream of profits.

It is believed that it will not be long before the Oriental Research Institute will be able to break even. And along with other computer companies. Also began to join the ranks of purchasing ERM-1 processors, and the Oriental Research Institute is likely to explode next year. Become the new cash cow of the Eastern Group.

In contrast, the two companies of Dongfang Semiconductor and Computer Park have been sucking blood from a steady stream of losses since their establishment. Fortunately, these losses are the necessary investment required to quickly occupy the market and explode production capacity in the early stage.

In addition to the construction of sales stores and logistics centers, a large part of the financing obtained by Computer Park was used for advertising. It is precisely by relying on the crushing of the dollar that the computer park company has become the world's largest computer distributor. In the United States, five out of every 10 PCs sold come from computer parks.

"Boss. In addition to Goldman Sachs, Morgan Stanley, Merrill Lynch, Salomon Brothers, and First Boston have all sent us cooperation intentions!" John Martin said to Li Xuan with a smile. Although he was not the one who made the final decision, the wonderful feeling of being surrounded by the whole Wall Street still made him very proud.

"The noses of this group of people are really smart!" Li Xuan shook his head and smiled, he had just had this intention.

"They're like hyenas foraging for food, and when they smell the food, they immediately flock to it!" John Martin figuratively says.

According to the forecast of a professional market analysis agency at the beginning of the year, the sales of personal computers in the United States this year will double on the basis of last year. Previous years. The overall PC market is too small, and even if the growth rate is relatively high, the total size is still small. But after several years of development, the sales of personal computers have increased considerably.

Last year, the total retail sales of personal computers in the United States reached $1 billion. And this year is only the total sales for the first half of the year. It has reached 1.02 billion, and it is not a problem to break through 2 billion for the whole year, which also fully fulfills the prediction of relevant institutions.

With the rapid advancement of personal computer technology. Its status has been gradually recognized by society as a whole. Instead of being seen as a toy for computer enthusiasts, it has become a new electronic device that can promote the efficiency of work and life. Arguably. After a few years of gestation, the PC industry has finally begun to enter a period of real explosive growth.

And the computer park company through guò large-scale investment. The layout was perfected one step ahead, so as to seize an important opportunity. With the surge in PC sales, more and more capital will enter the terminal retail industry.

If the computer park company wants to continue to maintain its share in the expanded market, it is bound to continue to increase investment and extend its tentacles to those areas that it has not yet set foot in.

Now that the bright market prospects can be predicted, it is time for computer park companies to sell at a price. Therefore, Li Xuan decided to start the listing plan and gradually absorb more capital to join in, so that the computer park company can firmly control the position of the industry leader in this wave of personal computer sales.

"John, do you have any plans for the company's next development?" asked Li Xuan. He summoned the other party from San Francisco to Hong Kong, and in addition to discussing the listing matters, another important topic was to discuss the company's next development direction. After two years of frenzied development, the computer park company has reached a bottleneck period.

"Boss, our company has carried out full coverage planning of self-operated stores in major densely populated areas and large and medium-sized cities across the United States. I think the next step should be to go back to the original franchise construction, after all, in rural areas such as the central and northwest, the marginal benefit of building large directly operated stores is too low!" said John Martin confidently. He already had a detailed draft before coming to Hong Kong, and he was ready to accept inquiries from his boss at any time.

Most of the population of the United States is concentrated in the coastal areas of the east and west. The central part of the interior, and a large area of Canada in the northwest, are home to a large number of plantation and livestock farms. These regions have a relatively low population density and a relatively backward economy.

After the computer park company was acquired by Li Xuan, the initial franchise store policy has almost completely stalled. In the past two years, instead of adding new franchises, they have been eliminated. In these economically less developed regions, the demand for high-tech products such as computers will be much smaller. It is not cost-effective for a computer park company to open a store on its own, so it is better to find a suitable partner in the local area.

Martin paused and continued: "I think the company's next store layout should be mainly focused on Europe. That's where we're weaker. Especially in Western Europe, regardless of the level of economic development. It is still educational, compared with California, New York and other places, it is not inferior, and it belongs to the best-selling areas of computers.

Moreover, the computer industry in Europe is not as developed as in the United States, and the PC market is just starting, so it is the best time for us to enter. As soon as the local sales companies start to stake a lot of land, we will be met with huge resistance to enter!"

Li Xuan nodded, the reason why he was ready to let the computer park company seek external financing was to seize the global market as much as possible. Because it is impossible for the Eastern Bloc to concentrate all its funds on it. There are many other projects that need to be invested.

"In addition to the expansion of stores, I personally think that the company has also encountered a bottleneck in the sales of personal computers! Now that we have a 50% market share in the United States, continuing to pursue a larger market share may not bring profit growth, after all, we cannot swallow the entire market!

Where are the new earnings growth areas for the company? I think it's time to start diversifying. The retail industry in the United States is now at a critical juncture in its transformation from a grocery store model to a hypermarket! Our company can quickly transform into a large-scale chain store that sells all kinds of electronic home appliances with the help of the brands accumulated in the previous marketing and publicity!

Li Xuan frowned, he remembered Best Buy, the world's largest home appliance retail company. It was from the eighties that it really entered the fast lane. Wal-Mart, another retail giant in the United States, also began to soar in the 80s. The founder, Walton, relied on the rapid expansion of Wal-Mart and became the richest man in the United States for a consecutive year since 85 years. In the 80s, the United States was indeed in a period of change in the commercial sales model.

"I need more market research and feasibility analysis. to support your point of view!" Li Xuan did not directly agree, nor did he refuse. Transformation is by no means an easy task, and it needs to be more fully demonstrated.

John Martin beamed. He also knows that this is not something that will happen overnight. If the computer park company from a single sales of computers, to the sale of a full range of electronic products. Then most of the existing stores need to be expanded, and the location elements of the new stores will also be redesigned in the future. This is definitely a huge challenge for the company.

Actually, this diversified sales plan. As early as last year, it began to germinate in Martin's heart. He also carried out a number of feasibility studies within the scope of his rights. Now after being recognized by Li Xuan, the big boss, he can mobilize the company's strength in a bright and bright way and start a comprehensive research and analysis. Before the advent of e-commerce, this kind of one-stop shopping center was still very competitive.

"Don't worry about sales transformation, first find a consulting agency for a detailed market analysis. For the next development strategy of the computer park company, I have a plan!" Li Xuan said.

John Martin immediately hid the smile on his face, and with a very professional attitude, he was ready to listen to Li Xuan's next proposal.

"I have always believed that the end of sales should not only end up selling products to customers, but should last until the end of the life of the products!

Li Xuan said loudly, with a hint of confidence in his tone, "Most of the personal computer products sold by Computer Park Company are guaranteed by the manufacturer. However, most of the warranty methods require customers to send them to the designated after-sales maintenance points for maintenance, and do not provide door-to-door maintenance services.

Although the United States is a country on wheels, most people have their own cars, and it is easy to get around. But the same U.S. is a sparsely populated and scattered population, and many users are not close to repair points.

And with the introduction of personal computers into thousands of households, many new users do not have much computer knowledge. Sometimes it can be just a minor software compatibility issue, or a command input error, and for them it will be the same as a broken computer. The computer must be moved and sent to a professional computer engineer for repair.

The reason why most computer companies, including the Aikang Company, did not provide door-to-door maintenance services was because of the expensive labor costs in the United States! In order to reduce the after-sales costs, the Aikang Company even entrusted most of the after-sales service to the computer park, relying on the self-operated stores in which the computer park was widely distributed, eliminating the need for a large amount of investment in building an after-sales network.

So can the computer garden launch some paid door-to-door service options on this basis? For example, to customize a $19.9 annual plan, ABC computer customers only need to call the service hotline when they encounter problems, and there will be a special engineer to provide door-to-door service!

Of course, the specific pricing also needs to be specially cost analyzed, and in order to avoid customers from applying for door-to-door after-sales service indiscriminately, customers can be required to pay a certain door-to-door service fee for those after-sales applications that are not covered by the warranty!"

ps: Ask for a recommendation ticket! I haven't asked for a ticket for a long time, I hope to give myself a little motivation! (To be continued......)