After the ribbon-cutting ceremony, Lu Feng led a group of leaders on a tour of the factory area, introducing some of the machinery and production lines.
The first batch of parts has officially started processing. Today is the first day, so only one production line is open. A dozen minutes later, the first Weipuda TV officially rolled off the production line, and applause broke out on site.
It was almost noon when Lu Feng gestured for them to proceed, saying, "We have prepared some light drinks in the cafeteria. Please, leaders, take your seats!"
They call it cheap liquor? How could that be? The cigarettes are all Chinese brands, and the liquor is all cheap!
The local TV station's midday news broadcast the news, and it quickly spread. First, the local business community was in an uproar. Some distributors of other brands saw Zhang Fengxia introducing the TV on TV and said that it would bring a new wave of disruption to the industry and that they were confident they could capture the local market within a month.
Locals are more familiar with electronics factories, and there were all sorts of rumors circulating before the Lunar New Year. Some local distributors were also quite anxious. They knew how much profit they made from selling a TV and how much of that was in shipping costs. Privately, many people said that Jiafeng Electronics Factory would have an impact on the local market.
Because of the short distance, there are no transportation costs!
Jiafeng Electronics was already attracting a lot of attention, but today's ribbon-cutting ceremony and the announcement of Zhu Lidong joining the company are like a bomb being thrown into the sea.
In no time, phone calls and pagers were ringing non-stop across the country, with the main topic of conversation being Lu Feng poaching Zhu Lidong. They couldn't figure out just how much benefit Lu Feng had promised to persuade Zhu Lidong to leave Lenovo and join him in a newly established company.
Inside Lenovo's office, CEO Liu sat with a gloomy expression. Seven or eight people were sitting or standing in front of the desk, and everyone present remained silent. The atmosphere in the room was extremely oppressive.
"Very good, very good. This young man has a lot of ideas." President Liu patted the table and said, "There's nothing he wouldn't dare to do. Not bad, I really like his spirit of not giving up."
Those present exchanged glances, feeling that President Liu's words didn't sound like a compliment!
After finishing speaking, General Manager Liu picked up the phone on the table, thought for a moment, and dialed a number.
At the same time, Jiao Enfan also felt the pressure. He recalled the scene playing on the TV. This TV, called Weipuda, was very big and looked fierce. If the price was set low, it would really have an advantage in the local market.
Jiao Enfan knew that the market was polarized, and that there was little overlap between people who bought products worth four or five thousand yuan and people who bought products worth eight or nine thousand yuan. However, he also understood that the total market size remained constant at a certain point in time.
Televisions are not consumables; once purchased, they are not used again for several years. When one company enters the market, it squeezes out the market share of others, even if only one unit is sold.
This market is a zero-sum game, an either-or situation. Brands with weak competitiveness will be marginalized after market competition, then they will exit the market, and then go bankrupt.
Companies that occupy the market center enter a virtuous cycle: large sales volume, strong brand power, and considerable profits. After obtaining profits, they invest in the next round of technological research and development, thus achieving technological leadership. Technological leadership leads to a new market center position. Unless there is a disruptive technological revolution, this company will be in a semi-monopolistic advantageous position.
The current domestic TV manufacturers are vying for this future position, squeezing out other companies. What Lu Feng wants to fight for is to first establish a market position in the local market.
When other brands heard that Lu Feng said he would capture more than 50% of the local market within a month, it was definitely a challenge for them.
Jiao Enfan first contacted Konka's general manager, and after less than ten minutes of conversation, they finalized their plan to target Jiafeng Electronics in the Suzhou market.
A few hours later, the brands with the largest market share in the local market actually reached an agreement. Eight companies, including Konka, Panda, Changhong, TCL, and Enfan, formed an alliance through the Electronics Industry Association and issued a statement saying that they would adjust their business in the Jiangsu market starting tomorrow.
The specifics weren't detailed, but many people have already sensed something fishy going on!
By evening, Zhu Lidong had officially joined the company and signed the shareholding agreement. There were seven or eight printed statements on his desk, and everyone looked grim.
"It's only been a few hours. We just finished the ribbon-cutting ceremony at noon and saw the leaders off, and these people have already arrived."
"The pace is too consistent, the content is almost the same."
"This is outrageous! And it's a gang bullying us. We didn't even do anything!"
Several managers from other departments were muttering to themselves, completely baffled as to why their new factory was so hated.
“The companies that issued the statement hold more than 85% of the local market share. It’s like we’re already under attack before we even go public.” Zhu Lidong said with a serious expression, “President Lu, if we don’t win this battle, everything will fall apart.”
Lu Feng nodded and said, "I know!"
Just as Zhu Lidong was about to say something, there was a knock on the door, and a man pushed the door open and said, "Mr. Zhu, there's a phone call for you. It says it's quite important."
"Okay!" Zhu Lidong stood up and apologized, "It might be a call from home. My dad is in the hospital, so I'll take this call."
"It's alright, it's alright. Please take care of your uncle for a few more days while he's in the hospital. Why did you rush over here so urgently?" Lu Feng said politely.
After Zhu Lidong left, the office fell silent. Zhang Fengxia placed the folder in her hand on the table and said, "Now it's time for this General Manager Zhu to show his skills!"
Lu Feng could tell that Zhang Fengxia wasn't entirely convinced, and he could understand it. She used to be the one in charge, but now there were two of them, and in the future, there would be three or four.
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