Chapter 371: Package and sell IBM, PC business
"Sell your PC business?"
Cindy looked at Chen Jiayi and felt very puzzled, "IBM, as the leader of global business jets, has his unique status and culture, and we at IBM have never thought of selling the PC computer business. ”
IBM's PC business is generally business machines. The price is relatively expensive, and it is basically used for office use. Moreover, IBM's PC business has been growing for decades. In the past, it has always been a product that is against each other. It can be said that IBM's PC business has brought a very strong advertising effect to IBM.
If it weren't for IBM's PC business, I'm afraid a lot of people wouldn't know that there was such an IBM company. After all, his other products, aimed at groups of individuals, are relatively few. Therefore, IBM has always attached great importance to its PC business.
Although Cindy didn't know what Chen Jiayi had in mind, she resolutely rejected Chen Jiayi's suggestion.
"That would be a shame."
Chen Jiayi stretched out his hands and expressed regret.
"Okay, Chen, I know what you mean."
Cindy saw Chen Jiayi's expression, and connected with the words just now, but she understood. The guy in front of him is really a good person.
"Actually, selling the PC business is actually very beneficial for you IBM."
"How?"
Cindy was a little disappointed and was about to get up to say goodbye. Unexpectedly, Chen Jiayi seemed to see through his mind and said another sentence.
"I would like to ask you about the profitability of your PC business in recent years."
IBM's PC computer, although it has always been praised by others, is considered the king of business jets. However, it is not because the computer is good that IBM can make a lot of money. On the contrary, IBM has been in a state of loss for nearly two years.
"This ......"
was asked by Chen Jia one by one, and Cindy was speechless for a while.
Anyone who has read IBM's statements knows that in the past two years, IBM's PC business has been in a loss-making situation. Moreover, the losses are relatively large. After it was sold to Lenovo at the end of 2004, IBM's PC business lost about $1 billion.
"Carrying a PC business that doesn't make money, just to make this brand? In fact, IBM's current fame is known all over the world. Even without a PC business, IBM's reputation would not diminish much. Moreover, the main profit business of your company is not an individual, but a corporate ......"
Although IBM's PC business, in the very beginning, brought a lot of popularity to IBM. In particular, the advent of PC computers in the 70s simply mythical to IBM. However, time is moving, and so are things. IBM's PC business now no longer has the influence it had in the past. It can even be said that IBM's PC business is gone. Now IBM is very mature, and there is no need to rely on the PC computer business at all, so as to expand its reputation.
"So, I think IBM should sell its PC business quickly."
Whether it is now or in the future, IBM's PC computer business has not only not generated any profits for IBM, but has been dragging down IBM's various decisions. As a result, he could not devote himself to the development of the software business and the hardware business consistently.
"What do you think, my friend?"
Chen Jiayi talked a lot, from IBM's brand to IBM's profitability. From IBM's profitability to IBM's plans for the future. And said that if IBM still attaches so much importance to its PC business. Then, even if IBM has some innovations, I am afraid it will not bring much glory to IBM. In fact, IBM is also innovating every year.
"Sounds like there's some truth ......"
Now Cindy has slowly become hesitant from the resoluteness at the beginning.
Yes, IBM's PC business has been losing money for nearly two years. Until now, the company has not been able to come up with a specific plan. This means that if IBM does not find a case to control the loss of the PC business. Then, next year and even in the future, IBM's PC business will continue to be in the red.
Is it worth losing hundreds of millions of dollars a year for the sake of this fame?
"Well, yes, your company does need to think about it. Still, as an outsider, I think. You're thinking about the same thing that Apple was thinking about a few months ago. ”
At this time, as soon as Chen Jia finished speaking, he looked at Jobs.
After more than a month of Apple computer sales, Jobs seems to be happy, and he also enjoys his company's products and can be liked by the public. It's a lot more interesting than innovation, and of course, Apple will always be creative.
"Yes, Chen is right. In the first two months, the problems we encountered at Apple were actually the same as those encountered by IBM. ”
Both companies have very similar cultures, and they value their own culture, their own brands. It's just that when they value their own brand, they are also burdened by their own brand value. If Apple hadn't been told by Chen Jia, I'm afraid Apple would still be innovating for the sake of innovation, and even if it launched a 64-bit computer, it would not have much value. Jobs looked at Cindy, a former marketing manager at IBM who is now a vice president of IBM.
"Okay, thanks, I'll think about it."
Cindy pondered for a moment, and seemed to be a little moved. However, the purpose of his coming to Chen Jiayi today was not achieved. So he looked at Chen Jiayi, and then asked, "So, what about the future development of IBM, Chen, what do you think?" ”
"I think, I've already said it."
Introducing IBM's PC business, Chen Jiayi plans to say it directly.
Even if Chen Jiayi doesn't say it, if IBM's PC business drops a few more times this year, I'm afraid IBM will have to throw away its own hot potato.
"Oh...... I see. ”
Hearing Chen Jiayi's answer, Jobs and Cindy suddenly realized.
"Chen, seeing you today is the happiest thing I have ever done this year."
Cindy stood up excitedly and gave Chen Jiayi a friendly hug.
"Haha, so am I."
Chen Jiayi also laughed, he knew that IBM's sale of the PC business had basically been done.
……
IBM Headquarters.
"Ladies and gentlemen, in 1978, our PC computer achieved an immortal glory, even in the face of Apple's competition, we are not afraid. However, decades later, Apple has long lost its former glory. And our IBM, too, has lost the market of the year. Even, we have to face the fact that the PC business is losing money. Yesterday, the company's finance department budgeted that the loss of our PC computer department this year may reach 500 million US dollars......"
IBM's CEO "Pehr" looked at the IBM executives sitting with a serious expression, and he hoped that this meeting could find the most appropriate way to deal with it.
"Jim, come on, what do you think?"
"I think the reason for the big loss in the PC business this year is the use of some parts with technical problems, which caused most of the computers to be repaired. After this year, by 2004, it will be relatively better. However, I also advocate saving some unnecessary expenses, which may improve the current situation. ”
IBM is a service-oriented company that pays attention to high investment and high return on products.
IBM's PC business is a representative of high investment. So, we see. In the PC business, IBM has invested a lot of money, not only in technology, but also in other aspects, which has caused a lot of management waste. In the past, when IBM sales were very good, I probably didn't think it was anything. Available with Dell, HP ...... After the emergence of a series of the world's big brand computers, IBM's sales share is getting lower and lower.
This year, in particular, IBM has found that several technical parts of IBM computers have gone wrong. Although there are no major problems with these parts, IBM, which has always pursued high quality, still recalls a series of IBM computers and replaces them. And this move is the flashpoint of IBM's large losses.
However, Tom's answer was not agreed by everyone, and one of the executive managers said, "I think even if there are no problems with PC computers next year, coupled with the tightening of expenses, it will still be difficult for our PC business to improve." After all, the loss of up to 500 million US dollars is not caused by a single factory repair, but also the gradual degradation of the market. ”
"Okay, Lawth, what do you say?"
Tom asked directly, in exchange for a wave of embarrassment from the other party, in fact, Lauth didn't know?
"I thought, maybe we can sell the PC business?"
At this time, Cindy was on the side, but she put forward Chen Jiayi's suggestion to him.
"Sell...... NO,NO,NO……”
Many spoke out against it, even though Cindy was a vice president at IBM.
Cindy, they think, is simply insane.
"Guys, listen to me."
Cindy thought for a long time after Chen Jiayi's words.
Indeed, today's IBM is no longer the IBM that sold computers in the past. If IBM wants to develop in the future, it can't always maintain its original thinking. If you always want to think about the glory of the PC in the past, perhaps, in a few years, it will be the end of IBM. Isn't Apple also under its own conservatism and has become a niche product?
He felt that Chen Jiayi's strategy was very right, although he was reluctant to IBM's PC brand.
"Just yesterday, I had a conversation with Mr. Chen Jiayi, the president of Tang Dynasty Company......
Cindy was the original, and gave out all the strategies that Chen Jiayi said. And, add to that his knowledge of IBM. His explanation is more convincing than what Chen Jiayi said. Even, he made bold predictions. If IBM continues to insist on this PC business, then IBM's software business will be surpassed by other companies.
……
A few days later, Chen Jiayi, who had returned to China, received a call from Cindy.
"The board of directors has reached a preliminary agreement to sell IBM's PC business."
"yes, I think, IBM made a wise decision."
Chen Jia smiled, he knew that IBM would definitely do this.
Then, next, for yourself, it is ...... to do this business all-inclusively.