On the surface, business war is about everyone trying to lower the selling prices of their products, and through this suicidal competition, they are squeezing the opponent's living space.
Any product has a price red line. If it is outside this red line, it means it is profitable, and if it exceeds the red line, it means it is a loss.
Business wars test the manufacturer's ability to withstand pressure, its own technical strength, economic strength, brand appeal, etc.
If a manufacturer's products have no advantages in these areas, then it will basically not be able to withstand the price cuts of its competitors and will eventually go bankrupt or be acquired by its competitors.
The market will naturally be occupied by competitors, who will then recover their previous losses by raising prices.
This is what you can see on the surface, and it seems very legitimate.
In fact, there are countless unknown activities happening behind the scenes, such as spreading rumors, slander, defamation, kidnapping and murder, etc.
This kind of business war, which is like real swords and guns on the battlefield, is very common, especially during the reshuffle period, and is bloody and cruel.
During this period, small manufacturers were eliminated, and resources and markets were eventually concentrated in the hands of a few companies.
After the reshuffle period, there will be a stabilization period, and only two big giants will remain in the market, which occupy 80% of the market.
Most of the business wars during this period were at the stage of action rather than words. On the surface, everyone was talking nonsense to each other, but secretly they were working together to make money.
Compared with Motorola, Huaguang is inferior to its competitor in economic strength, technological reserves and brand appeal.
Judging from the literal meaning, Huaguang must be the loser.
Panasonic has also joined this dimensionality reduction attack. How should Huaguang respond to the siege of two giants?
Wan Feng’s strategy is very simple, just one word: do it!
Isn’t it just that you give me a lower price and I give you a lower price? What’s the big deal?
The only thing he couldn't understand was that Motorola didn't fight for such a good market before the New Year, and now it's in a bad mood after the New Year?
Huaguang responded decisively by immediately reducing the price of its digital machine to 800 yuan, which was more direct than Motorola's 900 yuan price reduction.
A little-known newspaper in Hunan and Hong Kong called Juhua Daily published a piece of news on its front page.
In response to the joint efforts of Motorola and Panasonic, mainland China's Huaguang pager company caused pager prices to plummet, dropping by 800 yuan.
Unexpectedly, this originally ordinary piece of news suddenly became a hit. In one morning, the sales of Juhua Daily, which originally had a sales volume of only a few hundred copies, soared to 5,000 copies.
Although Huaguang pagers have very good sales in Hunan and Hong Kong, they are in a contradictory situation where the products sell well but the manufacturer is not getting any attention.
This news brought Huaguang Company into the sight of many people.
The next day, the tabloid published another piece of news about pagers: the president of Huaguang in mainland China said that the price of pagers might still go down.
The meaning of this news is very clear. The boss of Huaguang said that the price reduction of pagers has not ended yet.
This made more people from Hunan and Hong Kong know about Huaguang.
The price reduction of Huaguang pagers prompted Motorola and Panasonic to join forces and lower the price to 780 yuan.
This is another headline published by Juhua Daily: Huaguang’s CEO said frankly that he is not afraid of the suppression from the two giants Motorola and Panasonic, and Huaguang pagers were reduced in price again by 50 yuan.
The pager price war broke out on February 14th and lasted until February 17th.
In just four days, regardless of whether the pager market had a winner, Juhua Daily and Huaguang became two names known to many people in Hunan and Hong Kong.
The sales volume of Juhua Daily has reached 20,000 copies, and Huaguang pager has become a household name in Hunan and Hong Kong.
Lin Lairong, the owner of Juhua Daily, was at a loss whether to laugh or cry. Last year, she didn't understand why that cunning guy wanted her to publish a newspaper, but now she knew.
Businesses should indeed have their own voices, which not only help them make money but also speak out for their own business and guide public opinion.
Wan Feng had no idea what Lin Lairong was thinking, and he couldn't predict how long the price war for pagers would last, but it would be over if it started.
He is ready to fight to the end with the digital machine.
Unless Motorola and Panasonic make peace, they will divide the market 31:33.
"Motorola and Panasonic seem to be planning the next round of price cuts. What are your plans?"
"What's the plan? If they lower it by twenty, I'll lower it by fifty. If they lower it by fifty, I'll lower it by a hundred. I'll fight them to the end, until they can't fight any longer."
"How do we report the news? I forgot to tell you, but the newspaper I run now has a circulation of over 20,000 copies, and we're starting to get advertising. Also, Huaguang's popularity seems to have increased quite a bit. Now, many people in Xianggang who didn't know Huaguang before now know about it."
This is inevitable, otherwise why would you have to report on it in lengthy articles in newspapers?
"Just make up the news as you see fit. By the way, how much are the Motorola mobile phones selling for in Xianggang now?"
"Twenty-five thousand!"
In 1992, one hundred Hong Kong dollars was exchanged for seventy-one and a half Chinese yuan, which was equivalent to eighteen thousand Chinese yuan.
"Okay, I understand. If you have any situation, please contact me immediately."
After hanging up the phone, Wan Feng leaned his head against the back of the sofa.
Compared to other people's extremely tense business wars and the chaos in the company, it was as if nothing had happened here at Wan Feng.
Unlike others who hope that the business war will end quickly, Wan Feng now hopes that Motorola and Panasonic can fight for a longer time.
This is equivalent to free advertising for Huaguang, and the growth effect achieved is impossible to achieve by spending money on TV.
Why wouldn't he want to live longer?
If the fight can last for two months, people in Hunan, Hong Kong, Dongguang Province and even Taiwan will know about Huaguang Company, and then it will produce huge benefits when the big brother is listed.
There was a knock on the door.
"Come in!"
The person who came in was Geng Yu, the lead singer of Nanshanxia Band.
"Boss Wan! We've finished rehearsing the song 'Bubugao'. Would you like to come and have a look?"
"Have you finished rehearsing? I'll go check it out."
The place where the band rehearses at the foot of the Nanshan Mountain is an activity room in the Nanwan Group Youth Activity Center.
When Wan Feng arrived, there were many employees on shift watching the fun.
Wan Feng sat in the middle and began to watch the rehearsal at the foot of Nanshan Mountain.
Although he was not satisfied with the instruments Wan Feng bought, they were obviously a hundred times better than those of the original Nanshanxia band.
Especially the addition of the electronic keyboard makes the music less monotonous.
The prelude music was good, but as soon as the lead singer opened his mouth, Wan Feng began to frown and made a pause gesture.
"These two lines: Success or failure, who can predict it? The blood is destined to burn. I have to sing with emotion and momentum. I can't sing it mechanically like you do. This way..."
Wan Feng sang it again.
"That way, the chorus will flow naturally into the atmosphere you created in the previous line. Got it?"
"clear."
"Do it again."
Wan Feng listened to it twice before nodding with satisfaction.
Continue read on readnovelmtl.com
