The results of Starcom are still very bright, before Zhang Chen's investment landed, Starcom used the form of imported parts for domestic assembly and OEM sales in China, so in four months last year, Starcom had a turnover of more than 30 million US dollars and a net profit of more than 4 million US dollars, which is still the result achieved in the case of removing a large amount of asset investment expenditure. Gross margin is more than 50%.

Wu Ying cleared her throat: "Now let's enter the stage of directors' proposals, Zhao Xue has sent the proposals to be voted on at this meeting to your mailboxes on February 3, and Zhao Xue has just printed out five copies, one for each of you." Shaoning, let's start with your proposal and give you a brief introduction. ”

Zhou Shaoning nodded: "Please take a look at the seventh page of the materials in your hand, I have three proposals, first, I propose to invest eight million US dollars to build a new ICD R&D center, the location is 。。。。。。 Footprint。。。。。。 After the R&D center is built, there are two R&D goals in the short term, first, to complete the technology transformation and upgrading from PHS to PAS within the year, and second, the research and development of AN2000 replacement products, which is expected to complete the program-controlled switch with a capacity of 5,000 doors within one year. As for the expected costs and benefits arising from this, you can turn to annex II on page 37。。。。。。 ”

Zhou Shaoning graduated from Fudan and went to Princeton to study for a master's degree, the level is naturally not bad, and the three proposals put forward are very far-sighted in Zhang Chen's opinion, and the data are also very detailed, so Zhang Chen voted in favor when he raised his hand to vote.

Subsequently, Wu Ying invested 23 million US dollars, and the proposal to set up a dealer incentive mechanism was also unanimously approved, and the only point of dispute was only a few people on the selection criteria and assessment criteria of dealers, but they were also resolved.

Zhang Chen coughed twice: "I have two proposals, first, I hope to reach a comprehensive strategic cooperation with Qualcomm within the year." At the same time, to buy out the authorization of Qualcomm CDMA technology in China, at least a ten-year license period must be obtained. ”

Several people looked at each other, they had all seen Zhang Chen's proposal, but they were not optimistic about entering the CDMA market.

They are all engaged in communication, and they naturally know about CDMA.

Qualcomm has been developing CDMA for several years, and has previously gone to the mainland to promote CDMA, but due to various reasons, including the mainland's commitment to GSM, Qualcomm's CDMA technology has not been used.

Everyone knows that CDMA technology is good, but after all, there is no first-mover advantage of GSM, and there are now less than one million users.

With GSM almost dominating the world, it is really not too optimistic about how much potential CDMA can have.

Zhou Shaoning first raised his own question, the current Starcom's main work is still in PHS, followed by the telecommunication switching system, if part of the energy is divided to do CDMA, there is no doubt that Starcom's energy will be distracted.

The technical principles of the two are fundamentally different, and the corresponding equipment research and development is also different, which can be said to affect the whole body.

Zhang Chen smiled: "Qu Tu Migration salary, take precautions, it is precisely because I am optimistic about the short-term development of PHS in China that I will invest in Starcom, and naturally I will not dig into my own corner." In fact, we all know that after the establishment of Huaxia Mobile, Huaxia Unicom will be listed as the two largest operators in China, and in the field of mobile communications, there will be no change in the situation of two heads in the short term. ”

"PHS, in fact, is an alternative product, I know that we have carried out a comprehensive pilot in Lin'an, the results are not bad, at present, only Lin'an users have more than 60,000 households, and now the country's fixed-line users are increasing at an annual growth rate of more than 30%, as a PHS that follows the development of fixed-line telephone, it seems that the future is indeed bright. ”

But in the midst of this, there is a deep crisis. I know it's probably too early to talk about the crisis, but if we don't pay attention to it, it will be too difficult for us to turn around in three years' time. ”

"Now the main operating income of Starcom comes from fixed-line network switching equipment, in essence, we are now a supplier of equipment, and maybe this model will still bring us a lot of cash income in two or three years. But please note that in the field of equipment, the competition is the fiercest and the most brutal. At present, our gross profit margin can still be maintained at more than 50%, because the current competition is not enough, but within five years, the competition in this field will reach a white-hot level, and the gross profit margin will decline at a rate of 10% per year, which is inevitable in any manufacturing industry. ”

Zhou Shaoning hesitated: "Mr. Zhang, isn't it a little alarmist?"

Zhang Chen shook his head: "Mr. Zhou, for example, the current communication equipment industry is a blue ocean, and every shark living in this ocean can get enough food. But as the sharks multiplied, and there were still a large number of sharks in the outside sea that discovered this fertile sea, they all swam over. ”

"Well, at this time, due to the influx of a large number of competitors, this sea area will inevitably enter a fierce battle, and the blood will stain the whole sea red. At this time, this sea becomes a red sea. ”

Everyone showed a thoughtful look, Zhang Chen's description is very appropriate, any industry, will experience the process of changing from the blue ocean to the red ocean, and how to laugh to the end in this competition, dominating the entire sea area, is the biggest challenge faced by every enterprise.

Lu Hongliang groaned: "Mr. Zhang, it is precisely because PHS is now a blue ocean that we have to concentrate on occupying this sea, so that when we reach the stage of the Red Sea, we will have enough strength to fight and survive to the end." ”

Zhang Chen said with a smile: "In the face of the Red Sea, it seems that we have two choices, the first is to kill all homogeneous competitors and dominate the entire sea area, this difficulty can be imagined." The second is to retreat from this sea when the blue sea turns into the red sea. But this choice also seems to be problematic, abandoning an already dominant market is too much to lose, and not every company can get out of it immediately. ”

Zhang Chen looked around for a week: "In fact, there is a third kind: constantly opening up the blue ocean. ”

Lu Hongliang's eyes couldn't help but light up: "Open up the blue ocean?

Zhang Chen nodded: "Innovation, technological innovation, management innovation or marketing and business model innovation, relying on innovation, constantly opening up new blue oceans, and even driving industrial upgrading, this is constantly opening up the blue ocean." ”

"But the development of the blue ocean is based on the effectiveness of time, and there will soon be followers in the newly opened market, so there will be a red ocean situation again, so we must keep ahead, continue to surpass ourselves, continue to discover new blue oceans, and maintain a profitable level. As long as we can always stand at the forefront of the industry, then we will always have a blue ocean in front of us. ”

"That's why I proposed to work with Qualcomm. ”

Listening to Zhang Chen's words, everyone was greatly shocked.

Zhang Chen threw out the Blue Sea and Red Sea Theory seven or eight years in advance, of course, he would have stunned these young Junyan.

You must know that after the Blue Ocean Strategy book was written, Korean Jin Weican became the world's top management scientist, and he got soft on royalties alone.

Wu Ying hesitated: "But the future development of CDMA is really not easy to say, until now there is no large operator in the world to adopt this technology. ”

Zhang Chen said with a smile: "There is no doubt about the technological advancement of CDMA, and there is actually another reason why I value it, that is, it represents the future development direction." ”

"Where is the development direction?" Zhou Shaoning looked questioning.

Zhang Chen nodded and said: "Yes, the upgradability potential of CDMA is huge, I believe that the upgradability of the next generation of communication technology is too small, it is estimated that it will not take two or three years, and the major operators will start the research and development of the next generation of communication technology." ”

"You can take a look at Annex 5, which is a CDMA technical analysis report that I did with a team at Stanford, and it made a very profound analysis of CDMA technology. ”

"Qualcomm is still very young, and the importance of CDMA has not been taken seriously by major operators, and now is the best time to obtain a patent license for it. If we miss this opportunity, we may have to pay a hundred times the price in the future to squeeze into this market. At that time, we were faced with a sea of blood red. ”

Fortunately, several people understand technology, although there are few people in the US headquarters of Starcom, there are still a few technical experts, and a few people occasionally have something they don't understand.

Wu Ying touched his beard: "Okay, let's raise our hands to vote, if you agree with Zhang Chen's proposal, please raise your hand, I agree." ”

This is already a formality, after Wu Ying agreed, the number of votes has already exceeded half, although Zhou Shaoning still hesitated slightly, but he only had one vote, so he also hesitated and raised his right hand.

Zhang Chen smiled: "Thank you, the second proposal I want to make is to promote the implementation of PHS in Bincheng and Guangdong as soon as possible." ”

As soon as Wu Ying heard this, he came to the spirit, he was just about to tell Zhang Chen about it, Zhang Chen had a relationship in Bincheng Wu Ying knew, it was Zhang Chen who introduced Deng Xianlin to him, and he took the order of Bincheng 110.

After PHS landed in Lin'an, Wu Ying wanted to use Zhang Chen to operate Bincheng as a pilot city for PHS. He can do the work in the Ministry of Telecommunications, but the local work still needs the support of local connections.

Now Zhang Chen took the initiative to mention this matter, which shows that he is confident in settling the local relationship.

Ben Cheng is not surprised at all, but what is the situation in Yuehai?

Could it be that Zhang Chen can also play a role in Yuehai?

Wu Ying couldn't help but get excited, the population of Bincheng is more than 10 million in many places, but Guangdong is a large province with a population of more than 80 million.

Not only is it a province with a large population, but also a province with a large economy, if PHS can gain a firm foothold in Guangdong, there is no doubt that PHS will be counted!

Old flowers, old flowers, I hope you don't get dizzy, you still say that people have no background, does this seem like no background?