541 dragged people into the water

"Let's start with threats. As I said earlier, due to the impact of the financial crisis, the yen and the won have begun to depreciate, which will lead to a decline in the price of machine tools in Japan and South Korea. In addition, in times of crisis, companies will lower their profit expectations, not to make money, but to preserve their capital, and in order to increase sales, they may also take the initiative to lower prices and compete with us. Lin Zhenhua analyzed.

"So, what about the chances?" Gu Jiahua asked.

Lin Zhenhua said: "The opportunity means that these companies are now facing financial difficulties, eager to recover funds from the market, and it is difficult to bear high losses. In this way, if they want to fight a price war with us, they will inevitably look ahead and dare not entangle with us to the end. We should grasp this psychology of the other party and put on a posture of being willing to fight with the other party to lose both, and the other party will naturally be frightened. This is our chance to regain lost ground. ”

Lin Zhenhua's words are very simple, but these people present are all pondering the market trend every day, and the drum does not need to be hammered, Lin Zhenhua broke it lightly, and everyone understood.

The current situation is like this, regardless of whether China's machine tool companies plan to reduce sales, Japan, South Korea, Taiwan's machine tool companies must be cut prices to grab the market. Rather than passively responding, it is better to take the initiative, and once you start competing, you must fight until the opponent is powerless.

"Hehe, Xiao Lin always sees problems better than others, admire, admire." Gu Jiahua slapped his face lightly and said.

Lin Zhenhua waved his hand and said: "See laughing, see laughing, I'm just throwing bricks and attracting jade." These points of view, our group marketing department put forward, by the way, the State Planning Commission of Huanggang Director also has such a view, on this issue, I specifically went to him to discuss, he also believes that this is a good opportunity for our Chinese machine tool industry. ”

"Huang Chu is Director He's proud apprentice, young and promising, and his knowledge is extraordinary." Li Mozi said, "Did he ever talk about the Planning Commission's views on the current economic situation? ”

After graduating, Huang Gang was retained at the State Planning Commission and was soon promoted to director of the Division in charge of policy research. It is said that he was the author behind many of the macroeconomic policies promulgated by the Planning Commission, so Li Mozi was particularly concerned about what Huang Gang's views on this matter were, because these views might eventually be expressed in the official documents of the Planning Commission.

Lin Zhenhua said: "There are many issues to be considered by the Planning Commission, and in addition to purely economic factors, they also have to take care of the country's foreign strategy. From a macro point of view, we are still implementing the principle of taoguang and nurturing obscurity, and we will not behave too much at this time. However, Huang Gang also said that the State Development Planning Commission will not oppose the adoption of some measures with the characteristics of individual trades, and may even provide some support. ”

Everyone knows the principle of Taoguang and cultivating obscurity. Due to the collapse of the Soviet Union, China has become the last major power in the Eastern bloc, and if it acts aggressively, it will inevitably invite the full containment of the Western camp led by the United States. Under these circumstances, the central authorities have put forward the principle of keeping the light in their heads and never coming out of the ordinary, trying to avoid provoking right and wrong, and striving for the maximum amount of time for stable development. The image of the so-called "harmless white rabbit for humans and animals" was formed during this period.

Lin Zhenhua's words relayed by Huang Gang revealed two pieces of information. The first is that during the Asian financial crisis, the state will not adopt aggressive policies from the macro level, but will adopt the attitude of a responsible major country to win the trust of countries in Southeast Asia and East Asia. The second is that the state does not object to certain industries acting according to their own conditions, of course, the proportions of action still need to be carefully considered. As an official of the ministry, Li Mozi naturally understands this kind of officialdom rhetoric the fastest, he nodded and said: "Since the Planning Commission has such a spirit, and Mr. Lin has just made such an incisive analysis for us, then the strategy of our machine tool industry is very clear." I believe that we should seize the opportunity, strike boldly, defy hardships and dangers, and fight a battle to turn around. ”

"I think it's fine!" Bao Guangming first echoed, and his emotions were also mobilized. At the beginning, when Lin Zhenhua proposed a 30% price reduction, Bao Guangming was quite painful, but after thinking about it carefully, he felt that this plan was not so terrible. If we can really squeeze Japan, South Korea and other companies out of the market, then the lost profits may not be able to be earned.

Price wars are often used in business. In order to defeat competitors, you can reduce the price of your products to the point of loss, as long as you can hold on, and wait until the opponent collapses, you can raise the price again, at that time your product is in a monopoly position, what price is not up to you? Of course, there is also a skill in raising the price after the price reduction, and you can't directly bring up the original product price, which can easily lead to customer dissatisfaction. You can discontinue the original product, launch an improved version of the product, and take the opportunity to raise the price. This kind of little trick is no stranger to everyone.

"Mr. Lin, you say, what should we do? We'll just do what you tell us to do. Meng Zhenya and the others also figured it out and said to Lin Zhenhua together.

Lin Zhenhua said: "I don't dare to give instructions or anything, I only have a little immature idea, let's discuss it together." We have analyzed before, now is a very good opportunity, if we seize this opportunity, it is possible to give a fatal blow to the machine tool companies in Japan and South Korea, so that they can not recover at least a few years.

My idea is this, all the CEOs here, after going back, work hard, carefully calculate the cost of the company's products, and estimate an affordable price reduction. Then, according to the results of the calculation, we will gradually reduce the price of our products in stages, squeeze the market of Japanese and Korean companies, and force them to fight a price war with us. ”

"Gradual price reduction? What does that mean? Bao Guangming asked a little puzzled.

Lin Zhenhua said: "Director Bao, what do you think, if we reduce the price by 30% in one step, what will Japanese and South Korean companies do?" ”

Bao Guangming said: "They must have directly admitted defeat." As I did the math, they can't afford a 30% drop anyway. ”

"That's right." Lin Zhenhua said, "If we reduce the price by 30% all at once, the other party will definitely not respond to the battle, but directly retract and let us sing a one-man show, so that we will suffer too much." We cut prices not only to grab the market, but also to drag our opponents into the water and let them drown half to death. ”

"I see." Meng Zhenya interjected on the side, "What Mr. Lin means, is it that we hold the hole cards and drop them by 5% or 10% first, so that the other party feels that it is possible to fight with us." They are definitely not willing to give up the market like this, so they will also follow us to reduce the price. When they're in place, let's take another 5% down to lure them to follow. In this way, they were dragged into the water by us. ”

"No, it's too dark, isn't it?" Bao Guangming also reacted.

According to Lin Zhenhua's idea, Japanese and South Korean machine tool companies are unable not to participate in the war. Chinese machine tool companies to reduce the price of about 10%, if the Japanese and South Korean companies do not follow the price reduction, the market is robbed by Chinese companies, and at such a price, Chinese companies can also maintain profits. In order to keep the market, Japanese and South Korean companies can only follow the price reduction, which begins to be set. ..., after Japanese and South Korean companies follow suit to reduce prices, Chinese companies will then reduce by another 10%, and then the other party will be embarrassed. If you continue to follow up, you may face a loss. But if you don't follow up, the results of the previous price reduction will be in vain. In this dilemma, if Lin Zhenhua plays some more tricks, so that the opponent feels that there is an opportunity to take advantage of it, and continues to go down with a fluke mentality, he will eventually be dragged into the water.

Compared with the one-step price reduction, Lin Zhenhua's idea is indeed much darker. If Chinese companies cut prices on their own, and Japanese and South Korean companies do not follow suit, then although Chinese companies can win a larger market share, they will inevitably give others the impression of low-end products. It's different to pull Japanese and Korean companies to reduce prices together, everyone is reducing prices, indicating that everyone's products are almost the same, and in the end, Japanese and Korean companies can't bear the greater price reduction, and quit halfway, which is a foil for Chinese companies in vain.

In addition, Chinese companies and Japanese and South Korean companies do not completely overlap in the product line, especially in terms of high-end machine tools, Japanese and South Korean companies can still retain some share. If Japanese and Korean companies reduce prices on low-end products, high-end products must also be expressed, otherwise it will cause customer dissatisfaction. Therefore, Lin Zhenhua's strategy is to force Japanese and South Korean companies to reduce product prices across the board, and when the dust settles in this price war, Japanese and Korean companies will find that they have not only lost the low-end market, but also the profits in the high-end market. This has reached the idea that Lin Zhenhua said that it is necessary to seize the market and let the other party bear losses.

Gu Jiahua is a government official, and he has not been in the business for a long time, so he can't understand these cats all of a sudden. However, there is no shortage of dedicated people beside him, and as soon as he said such and such things, Gu Jiahua figured out Lin Zhenhua's thinking. He pointed at Lin Zhenhua with his finger and said with a smile: "Xiaolin, I really can't see that you are such a ruthless person." ”

"This ...... It should be called resourcefulness, right? Lin Zhenhua replied unashamedly. In his heart, he is quite complacent about his plan.

"I remember, I hope the two of us won't be competitors in the future." Gu Jiahua said, "I understand, the most terrible thing in this world is to become an opponent with you." ”

"Mr. Gu, you still missed a sentence. There is nothing happier in the world than to become friends with Mr. Lin. Bao Guangming laughed and slapped Lin Zhenhua on the back.