Replay 07: Opening the Temple of Learning

Chapter 397 How do you know if you don’t try?

"The FCC and public opinion have a knife on their necks. They can't take this risk."

"It's not up to us to decide whether to take risks or not, but we have to try." Wu Jun said in a steady tone, "It's absolutely not okay to just sit there and wait for death."

Marketing Director Li Wei couldn't help but ask

"Mr. Wu, you said we should try, but what bargaining chips can we use? AMD has already chosen a side, and they won't take any more risks."

Wu Jun narrowed his eyes and said in a low voice: "They took sides because they felt that the risk of cooperating with us was too great."

“If we can provide enough assurances so they see that the benefits of cooperation outweigh the risks, there is a chance.”

Technical Director Chen Jianwei quickly responded: "Mr. Wu means to bring them back with a bigger order?"

Wu Jun nodded: "That's right. AMD is a businessman. They can be suppressed by the FCC, but they also need money."

"If we can make them an offer they can't refuse, there's still room for maneuver."

"But how many months can our cash flow sustain?" Wang Shanshan, the financial director, asked worriedly, "What if they ask for too high a price? How can we afford it?"

"Find a way to answer it." Wu Jun's eyes were firm. "We can't be frightened here."

"If we can't make it through this time, not only will our high-end product lines, but even the company will go bankrupt."

Public relations director Zhang Tong said cautiously: "Mr. Wu, we can try negotiations, but we also need to be prepared for both scenarios."

"If AMD still insists on its stance, do we need to activate our backup plan?"

"Backup plan?" Wu Jun frowned. "You mean looking for other suppliers?"

"Yes." Zhang Tong nodded. "Although the whole world is trying to block Zemeng now, perhaps we can still find other potential partners, such as manufacturers in Japan, South Korea or Europe."

Technical Director Chen Jianwei shook his head: "It's difficult! Global giants are basically closely tied to the interests of the United States."

"Besides, high-end chips are not cheap. How can it be so easy to find alternative suppliers?"

Public relations director Zhang Tong sighed: "Having said that, we can't completely give up on this path."

"If AMD completely gives up, we have to have a way out."

Wu Jun raised his hand to signal the two to be quiet: "You are all right, but our first priority now is to talk to AMD first."

He knocked on the table hard and said firmly: "The first step is for the marketing and public relations departments to immediately draw up a negotiation plan to clarify our core demands and the concessions we can make."

"We need to tell AMD that the benefits of cooperation far outweigh the risks for them."

“At the same time, some specific measures were proposed, such as order locking, compensation plans, and even higher advance payments.”

"The second step is for the technical and production departments to immediately count the existing inventory and gain more buffer time."

“The third step is for the public relations department to manage market sentiment and issue announcements to appease customers.”

"It was made clear that our supply chain was being adjusted and would not be significantly affected."

There was a brief silence in the conference room.

A few seconds later, Technical Director Chen Jianwei spoke first: "Mr. Wu, I agree that we must speed up the negotiations with AMD."

Marketing Director Li Wei sighed: "Although the hope is slim, we can only try. After all, we have no other choice now."

Financial Director Wang Shanshan nodded and said, "I support the negotiation, but Mr. Wu, I still want to remind you that you must stick to the bottom line and not let the company fall into a bigger crisis."

Wu Jun nodded, his eyes grim: "Don't worry, I won't let the divine ship fall into a deeper pit."

"The meeting is adjourned." Wu Jun stood up. "Everyone, act according to the plan, the sooner the better!"

After the meeting, Wu Jun returned to his office.

He sat at his desk, staring at the screen of his mobile phone. After hesitating for a moment, he dialed Lu Shan's number.

"Mr. Lu, AMD has officially notified us that it will cut off supply and terminate our cooperation after the last batch of chips is shipped." Wu Jun said in a low voice with a hint of helplessness.

Lu Shan's voice on the other end of the phone was still calm: "I know. I had a hunch about this a long time ago. What are your plans on the Shenchuan?"

"I plan to personally lead the team to talk to AMD to see if there is any room for recovery," said Wu Jun.

Lu Shan smiled and said, "Okay, let's talk, but don't hold out too much hope. If you have any difficulties, feel free to contact me."

With the sun high in the sky, Wu Jun stood in front of the revolving glass door of AMD's headquarters. He looked up at the huge AMD logo with a complicated expression.

The accompanying assistant Xiao Zhang was very nervous and whispered, "Boss Wu, do we really have a chance? Their attitude is so tough..."

Wu Jun snorted coldly: "How do you know if there is a chance if you don't try?"

"Even if we have to kneel down today, we must make them give us a way to live!" After saying that, he strode forward.

The receptionist at the front desk had a professional smile on her face: "Mr. Wu, welcome."

"But I'm sorry, Mr. James is currently in a meeting, you may have to wait a while."

Wu Jun frowned and suppressed his unhappiness: "Okay. Please inform Mr. James that I have brought an important cooperation proposal."

Two hours later, the conference room

James Wilson finally arrived.

While adjusting his cuffs, he glanced at Wu Jun casually: "Mr. Wu, I'm sorry to have kept you waiting for so long."

"I'm short on time, let's make this short."

Wu Jun tried hard to suppress his dissatisfaction and forced a smile on his face:

"Mr. James, I came here in person this time in the hope of finding a solution that both parties can accept."

James smiled coldly: "Solution? Mr. Wu, I think you should know that this is not our choice, but the situation forced us."

Wu Jun knew what the other party meant. The FCC and public opinion had already put a knife to AMD's neck.

He whispered, “Mr. James, Shenchuan has always been one of AMD’s most important customers.”

"Last year, our purchases from you accounted for 15% of your revenue. This is a number you cannot possibly not care about."

James spread his hands: "Mr. Wu, of course I care."

"But you also know that no matter how big the market share is, it is not as important as the survival of our company."

"If we continue to supply Shenchuan, what do you think our shareholders and the FCC will think?"

Wu Jun gritted his teeth and lowered his tone: "We can make concessions. I am willing to increase the purchase price by at least 20%."

James still had an indifferent expression: "Sorry, Mr. Wu, it's not about the price."

Wu Jun was anxious and leaned forward slightly: "Mr. James, we can still pay in advance."

"You just need to confirm the supply and we will pay the full amount immediately after signing the contract! It's zero risk for you."

James smiled and shook his head: "Pay in advance? It sounds good, but as I said, the risk is too great."

"It's not just a business activity now. The entire industry and the government are watching us."

Wu Jun's forehead was covered with sweat, and his voice was trembling: "Mr. James, I'll add another 10%, so 30% increase, is that okay?"

"We can even sign a long-term contract to lock in the purchase volume for the next three years. This way, your revenue can grow steadily!"

James' smile was still perfunctory: "Mr. Wu, I appreciate your sincerity. But unfortunately, this is not something that can be resolved by price and contract."

Wu Jun's face became increasingly ugly, and the veins on his forehead were throbbing slightly.

He tried to make his voice sound more stable: "Mr. James, our Shenchuan products have always been the best demonstration of AMD chip performance."

"Without the divine ship, your influence in the Xia country market will be greatly reduced."

The smile on James' face finally faded a little: "Mr. Wu, do you think we still need the Xiaguo market?"

"It is now clear that the risks of continuing to supply you far outweigh the benefits."

He added icily, "Besides, AMD has no shortage of customers."

These words were like a knife stabbing into Wu Jun's chest.

He knew that continuing would only bring humiliation upon himself, but he still gritted his teeth and said:
"Mr. James, Shenchuan and Zemeng are indeed under great pressure, but you also know that the wind direction will change."

"By that time, can AMD really afford to lose us?"

James narrowed his eyes and said in a lukewarm tone: "Mr. Wu, I understand your difficulties, but AMD's position will not change. Let's end the negotiation here."

After saying that, he stood up and turned away without even saying a word of courtesy.

The sun was high in the sky, and Wu Jun stood in front of the AMD headquarters building, his face so gloomy that it seemed as if water was about to drip out.

He looked up at the towering AMD logo and a hint of anger flashed in his eyes.

The accompanying assistant Xiao Zhang looked at Wu Jun nervously, wanting to say something but not daring to open his mouth.

Wu Jun sighed, his voice so low that it seemed like he was talking to himself: "These people really don't intend to leave any room for us."

As he spoke, he looked down at his phone screen, which was full of news about "AMD supply cut."

"Mr. Wu..." Xiao Zhang finally couldn't help but speak, "Is it true that there is no chance for AMD?" Wu Jun glanced at him coldly, his tone revealing the undisguised depression: "Possible? Ha, they never intended to give us a chance from the beginning to the end!"

He paused, his eyes full of fatigue: "No matter how I negotiate, no matter how I compromise, James will only use the four words "too risky" to evade me."

"They were simply being pushed into playing chess, and they didn't even have the courage to break free."

The atmosphere in the car was deathly dull.

Wu Jun sat in the back row, staring at the street scene receding outside the window, his brows furrowed, and his fingers tapping on his knees intermittently.

James's cold tone in the conference room just now kept replaying in his mind.

"The risks of continuing to supply you far outweigh the benefits."

"And AMD has no shortage of customers."

These two sentences pierced his heart like needles, making him very irritated.

He rubbed his temple fiercely, gritted his teeth and whispered: "It's so damn unlucky!"

"Mr. Wu, why don't you take a break first?" Xiao Zhang asked cautiously.

Wu Jun snorted coldly: "Rest? They have a knife on my neck, how can I rest?"

He paused, and his tone became colder: "Not today, let's talk to James tomorrow. I don't believe AMD will really be willing to give up this big cake."

When Xiao Zhang heard this, he nodded but said nothing more.

Wu Jun came to AMD headquarters again early in the morning and was about to ask the front desk to help him make another appointment with James when he suddenly heard two employees next to him whispering.

“I heard that people from there also came last week and the talks went quite smoothly,” said one of them.

Another person nodded: “Yes, I heard that Lianxiang directly promised a large order and also agreed to cooperate with AMD’s promotion in the market.

"The key is that they have a good relationship with the FCC, much better than Shenchuan."

When Wu Jun heard the word "Lianxiang", he was stunned.

He immediately turned around and walked over to the two employees, and asked in a deep voice, "What were you talking about just now? Lian Xiang? Did they come to talk?"

The two were startled by Wu Jun's sudden action and felt a little embarrassed: "Uh... sir, this is none of your business, right?"

Wu Jun stared at them with a sharp look in his eyes: "I am Wu Jun, the CEO of Shenchuan, and I have the right to know the truth of the matter."

"You mentioned Lianxiang just now. Can you tell me clearly what they talked about with AMD?"

The two looked at each other, and finally one of them whispered:

"We just heard that Lianxiang seemed to have proposed some cooperation intentions, but we don't know the specific details."

"Intention to cooperate?" Wu Jun sneered, his tone full of anger, "Very good, very good!"

He turned and quickly left the hall, leaving the two employees standing there looking at each other.

Wu Jun sat in the car, his face looking even uglier than when he came down the mountain yesterday.

He punched the armrest of the seat, gritted his teeth and cursed in a low voice: "Lianxiang, these bastards, actually stabbed me in the back!"

Xiao Zhang was stunned for a moment, then asked in a low voice: "Mr. Wu, are you saying that Lianxiang took advantage of the fact that we couldn't reach an agreement and snatched our order?"

Wu Jun sneered, his eyes filled with cold anger: "Do you still need to ask? They did it on purpose!"

"When AMD says the risk is too great, isn't it just looking for a more obedient partner?"

"Lianxiang must have agreed to some conditions, and even took the initiative to flatter the FCC. Otherwise, why would AMD be so tough on us?"

Assistant Xiao Zhang gritted his teeth and said, "Lianxiang is too shameless! They can't produce high-end products themselves, so they want to take advantage of the situation!"

Wu Jun closed his eyes and tried to calm himself down.

He knew that now was not the time to lose his temper.

Sunlight streamed into the office through the floor-to-ceiling windows, but the atmosphere was suffocatingly depressing.

Wu Jun stood in front of Lu Shan's desk, his face gloomy and beads of sweat on his forehead.

"He put his hands on the table, and said in a low voice with a hint of anger: "Mr. Lu, this negotiation has failed."

Lu Shan raised his head, his eyes calm as water: "Be more specific."

The expression on Wu Jun's face became even uglier, and he gritted his teeth and said, "James didn't give me a chance at all. No matter how I compromised, he wouldn't agree."

"They used the excuse that the risk was too great and refused to give in at all."

"I proposed to increase the purchase price, pay in full in advance, and lock in a three-year order. I almost gave them my underwear, but James was not interested at all!"

Wu Jun became more and more angry as he spoke, and slammed his fist on the table. "They decided to give up on us a long time ago!"

Lu Shan's tone remained steady: "What do you think is the reason?"

Wu Junqiang suppressed his anger: "At first I thought it was pressure from the FCC, but later I found out that Lianxiang's gang of bastards had already gone there!"

"They talked to AMD, agreed to a bunch of conditions, and even took the initiative to approach the FCC."

He sneered, his eyes full of anger: "AMD must have felt that cooperating with Lianxiang was less risky, so they kicked us out directly!"

Lu Shan nodded, his tone calm: "Lian Xiang snatched the opportunity, this is expected."

Wu Jun frowned: "Boss Lu, are we just going to let them succeed? The problem with the Divine Ship is already very serious!"

"Be more specific." Lu Shan said lightly.

Wu Jun adjusted his breathing and began to report in detail: "The biggest difficulty now is that we have a lot of orders, but the chip supply has been cut off."

"Without the chips, subsequent orders simply cannot be delivered on time."

He raised his head, looking anxious: "The K2 flagship series of high-end computers can still hold out for a while, but the inventory of mid- and low-end product lines is very low and will soon be out of stock."

"Once there is a problem with supply, the consumer experience will be severely damaged and the market share will definitely drop sharply."

“Once Lianxiang takes advantage of the opportunity to grab the market, it will be very difficult for us to regain it!”

Lu Shan crossed his hands, leaned back in his chair, and looked calm: "In other words, your current problem is inventory and supply, and you can't keep up with the orders, right?"

"Yes!" Wu Jun said hurriedly, "The most important thing is that our existing chips can't support so many products."

"If we delay any further, consumer confidence will be gone!"

Lu Shan hesitated for a moment, and said calmly but firmly: "Cut off the mid- and low-end product lines, concentrate resources, and keep the flagship series."

"What?" Wu Jun raised his head suddenly and looked at Lu Shan in shock. "Cut off the low-end product lines?"

"That's right." Lu Shan's tone was calm, but his eyes were sharp: "Competition in the low-end market is already Lianxiang's home turf."

"Continuing to stick to mid- and low-end products will only waste limited chip inventory and lower the brand image."

He paused, his voice low but powerful: "Shenchuan must maintain its core competitiveness, that is the K2 flagship series!"

“Let consumers know that Shenchuan’s high-end products are still reliable.”

Wu Jun showed hesitation on his face: "Mr. Lu, the low-end market accounts for half of our sales. If we cut this part..."

"What is sales volume used for?" Lu Shan interrupted him in a sharp tone.

Wu Jun was stunned.

Lu Shan's voice was calm: "Sales volume is used to maintain market share, but now, your task is not to fight for market share, but to maintain reputation."

"As long as Shenchuan's flagship products are still there, consumers will not completely turn to Lianxiang."

"Otherwise, when the supply of mid- and low-end products is cut off and the flagship series also collapses, you will really be doomed."

Wu Jun gritted his teeth, the veins on his forehead throbbing slightly: "But even if we only keep the flagship series, the inventory won't last long."

"If we don't have enough chips, we can buy them on the market." Lu Shan said calmly, "Besides AMD, there are other channels."

Wu Jun frowned: "Market procurement? But the whole world is besieging us, and manufacturers in Europe and Japan may not dare to supply us."

Lu Shan smiled and said calmly: "Market procurement is not necessarily a formal channel, you know what I mean."

A glimmer of enlightenment flashed across Wu Jun's eyes: "You mean... through a non-public method?"

Lu Shan nodded slightly: "With sufficient funds, all resources can be purchased."

"Have your purchasing team keep an eye on the black market channels. It doesn't matter if the price is a little higher, as long as it can hold out for a while."

When Wu Jun heard this, his expression eased a little, but then became complicated again:

"Boss Lu, we may be able to maintain this in the short term through these methods, but what about the long term?"

"AMD's supply cut is a foregone conclusion, and other suppliers are unlikely to open their doors to us."

“Even if we survive this wave, we will still be in the same predicament in the future.”

Lu Shan's eyes were deep, and his tone was calm but sharp: "For long-term problems, of course you have to solve them yourself."

(End of this chapter)