Chapter 245: Monopoly Worries

The original one-month honeymoon trip finally turned into a month and a half, and Li Xuan and Zhong Chuhong could be regarded as having played all the places in Europe. In the future, except for business trips, Li Xuan felt that he was no longer interested in traveling to Europe.

When he returned to Hong Kong, he became lazy, and he didn't seem to have adjusted from his previous holiday state. Of course, Li Xuan is the boss, so naturally no one dares to criticize anything. In fact, he has entered the state of work, but now he is a little different from before, and seems to have another level of understanding of life.

Most men will become mature and stable after starting a family, and Li Xuan is obviously a special small part. He used to be too steady, obviously his biological age was only in his early twenties, and he felt like an old man in his forties and fifties.

In the past year or two, Li Xuan can be said to be the most popular figure in Hong Kong. But his high-profile position is mostly due to the crazy performance of Dongfang Electronics Company. Every time it appears on the page of a newspaper, it is associated with financial news.

And other wealthy sons of the same age as him appeared in the newspapers, either because the pickled girl made a scandal with his sister, or because of the drag racing fight and got rich and quarreled, in short, they were all young and frivolous. In addition to news other than business, Li Xuan's private life rarely appears in the newspaper. On the contrary, Zhong Chuhong has always been the object of pursuit of fashion and entertainment magazines.

"So everyone was persuaded by Dean Huo, and they all agreed to split?" Li Xuan leaned back on the executive chair and crossed his feet on the desk in front of him.

"Yes, Dean Huo believes that if East-DOS develops well enough in the future, it can really monopolize the entire personal computer operating system market. Then its independent split is inevitable. Because if the same company has other software, it is easy to take advantage of the monopoly position of the East-DOS system to gain an unequal competitive advantage. This will definitely lead to an antitrust investigation!" Clairen put before the senior management meeting. Huo Qiuxing, president of the Oriental Economic Research Institute, repeated the views to his boss.

Li Xuan nodded slightly, he had communicated with Huo Qiuxing a long time ago. The operating system is the most important medium of communication between hardware and software, between computers and users. After the launch of the East-DOS system, relying on its relatively simple and convenient command control mode, people who do not know programming only need to memorize the commonly used instructions, and can also control the computer lightly. This has greatly promoted the introduction of personal computers into people's daily life and office.

In another time and space, the Windows system, which is easier to use than DOS, saves the user the steps of memorizing various instructions. You can operate the computer with just a few clicks of the mouse, which is the most important foundation for the computer to enter thousands of households.

It is by relying on the DOS system and the Windows system that Microsoft has achieved domination of the computer industry. It is also through the monopoly of the operating system. Its Office software successfully defeated Lotus1-2-3, and its Internet Explorer successfully eliminated Netscape's Navigator browser.

And Microsoft was sued by the U.S. Department of Justice and almost dismembered. This "trial of the century", which is known as the most influential in the United States in the 20th century, finally allowed Microsoft to escape. But Oriental Software as a foreign company. It is estimated that it has not yet developed to the point of Microsoft. Anti-monopoly lawsuits have come to the door one after another.

Dean Huo said that as a foreign company, without the support of a strong government background, our strategy in overseas markets should not be a market monopolist, but a market leader. Finding the opportunity to compete fairly with local companies on the table is the number one priority we need to achieve!"

Li Xuan nodded, although this sounds a little helpless, but this is the case. Any large-scale market competition. It has never been a pure business competition, and there are various complex factors behind it. For example, political interference.

It is precisely because of this that Dongfang Electronics under the leadership of Li Xuan has been working hard to climb the technology tree, and the technological leadership can greatly offset the off-site moves of competitors. Moreover, the industries that Li Xuan chose for Dongfang Electronics Company were all emerging industries that were still blank before. These industries do not have very strong vested interests that can give Dongfang Electronics enough time to grow.

Now Dongfang Electronics Company has grown into a strong player in the game and computer industry that cannot be ignored. In terms of games, the Oriental game company Tong Guò has established its position by going head-to-head with Sega in the field of arcade machines; Tong Guò has shown its strength in a head-to-head confrontation with Atari in the field of home game consoles; and in the field of handheld machines, it has almost monopolized the market.

In the field of computers, Aikang has become a well-deserved leader in the personal computer market through the GuòABC series of computers, which has left behind competitors such as Apple. In fact, the reason why Li Xuan did not integrate chip manufacturing, software research and development, and computer production in the first place was that he had already considered the anti-monopoly problems that he might encounter in the future.

At present, Oriental Software Company and Oriental Research Institute provide support to other computer manufacturers in addition to priority technical support for Aikang. Although this was harmful to the interests of Aikang, Dongfang Electronics Company took advantage of other computer manufacturers to catch up with Aikang, and let its processors and software quickly occupy the vast majority of the market.

In this case, even if a monopoly is formed, it is a technological monopoly rather than a commercial monopoly. In Western law, technology monopolies are allowed because they are difficult to maintain for long. For example, after a period of time, after the RISC processors of other companies come out, the ERM-1 processors of the Oriental Research Institute will encounter strong competition.

The most effective way for ERM processors to reject this competition is to have the East-DOS system not provide technical support to other processors. But this involves market monopoly, which will be regarded as unfair competition.

Compared with the precarious situation faced by ERM, the East-DOS system has gradually begun to form a commercial monopoly in addition to being technologically advanced. But this monopoly is not a deliberate act of Dongfang, but the result of natural selection by other third-party software companies. Because the other software is compatible with each operating system. It takes a lot of effort to modify the program, which means a lot of extra costs. Software companies rarely have an incentive to take the initiative to develop compatible software for a new operating system, and this is the new competitor of East-DOS. A strong barrier to entry was erected.

This kind of commercial monopoly, even the US Department of Justice, has no excuse to trouble Oriental Software. However, if Dongfang Software Company takes advantage of the monopoly position of the East-DOS system to promote the sale of other products of its own company, this involves bundling and naturally falls within the scope of anti-monopoly.

In fact, Dongfang Software Company is now doing just that, for example, the text software that is used very frequently in personal computers. Users of the East-DOS system have only one option, East-Word, while other companies develop text software such as Word-Star. Not compatible with the East-DOS system at all. Dongfang Software is now in the early stages of rapid development, and it is not too conspicuous to do so, but it will wait until East-Dos fully dominates the market. If you continue to do so, you will be immediately targeted.

Li Xuan opened the text and put it on his lap, and quickly signed his name in a copy of the text inside. This is the text of the split plan of Dongfang Software Company, and after he nodded and agreed, Dongfang Software Company will be officially split into Dongfang Application Software Company and Dongfang System Software Company.

Actually, before the vacation. After receiving the results of the discussions at the Senior Management Meeting. has already agreed to the split of Dongfang Software Company, and today is just the official signing of the relevant documents. Oriental Software has already begun to restart negotiations with IBM in accordance with the split plan. After careful weighing, IBM finally decided to accept the offer of Dongfang Electronics to buy a 25% stake in the newly formed Dongfang Systems (software company) for $300 million.

At the same time, two companies with the same valuation after the split will each take out 25% of the shares for cross-ownership. In other words, in the newly established Dongfang System (software company), Dongfang Technology Holding Company holds 50% of the shares. Oriental Applications (software company) and IBM each hold 25% of the shares. Dongfang Application's shareholding allows it to continue to enjoy the priority support of the East-DOS system for other software.

"That's right. Sir Hawke called before and said that he would fly to Hong Kong the day after tomorrow to have in-depth communication with you about the next development of the Aikang Company!"

"Oh?" Li Xuan smiled, "In the previous manager's meeting, Hawke had any plans to let Aikang Company also join the shareholder system?"

"Yes, Sir Hawke had such a plan at that time, but including Mr. Han, Dean Huo and others, they all thought that the problem of Aikang Company was not whether it was incorporated into the shareholder system, but whether the management of Aikang intended to distance itself from other Oriental companies in Hong Kong!"

Aikang has always been the company with the weakest control power in the entire Eastern Group. When Li Xuan acquired the British Aikang, he hurriedly listed on the London Stock Exchange before he had time to fully digest it. In order to be recognized by the British and European capital markets, Li Xuan chose most of the professional managers in the United Kingdom when forming the management of listed companies. Their personal communication with Li Xuan was far less frequent than that of the executives of other subsidiaries.

After the company went public, both the stock price and actual sales have risen all the way, which is very good, but it has also contributed to the pride of some executives. They believe that if the company had not aggressively chosen to disclose the technical information of the ABC-3 computer, Aikang's performance would have been better now.

Because since March this year, there have been ABC-3 computer compatible machines on sale. Although they are all unknown small brands that have not had much impact on the sales of ABC series computers, the management of Aikang has been able to meet the fierce competition in the future.

This also made some people dissatisfied with Hawke and Han Peng, who proposed to disclose the ABC-3 computer technical data. With the support of some minority shareholders, they demanded that iKang adopt a more independent development strategy, such as reducing its dependence on the Oriental Research Institute and expanding the size of the Cambridge R&D center.

When Li Xuan acquired the British company Akon, he merged the R&D team of Cambridge with the computer R&D team in Hong Kong, and the original ABC-1 series of computers was the result of the joint efforts of the two teams. However, iKang has been expanding the scale of the Cambridge R&D center recently, but it has been somewhat ignorant of the Hong Kong R&D center.

Albert Hawke, the CEO, has been appeased and compromised by these centrifugal forces within the company. Now, since he is going to come to Hong Kong to communicate with Li Xuan, it is time to deal with these little miscellaneous fish. If his thinking does not satisfy Li Xuan, Li Xuan does not mind using the rights of the controlling shareholder to change the entire management! (To be continued......