Rebirth of the Official Business Route

What are you discussing? Xie Wanqing opened the door and came in, seeing the prototype of the black panel and the projector on the meeting table, Is this the new prototype recently developed by the technology center?

Yeah, I'm listening to Lao Ding introduce the functions of the new prototype. I'm not proficient in technical things, and Lao Ding is very difficult to introduce. Why did you come here so early? Zhang Ke wanted to discuss the spin-off of the technology research and development center. For the establishment of the company, Xie Wanqing and Zhou You were invited to have dinner together in the evening. Unexpectedly, Xie Wanqing came over in a blink of an eye.

I received your call. I was planning to go back to the city, so I came here. Xie Wanqing pulled out a chair, It's a new model, and Lao Ding is waiting for you to come back to offer treasures. It’s been a while, and other people want to appreciate it in advance, so he calls back on the excuse of technical secrecy, after watching it, how do you feel?”

Ding Huai said discouragedly: After spending so much energy and money, the things developed are still far from what Ke Shao expected...

Who said that? Zhang Ke said with a smile, My expectations were not that high. I was quite pleasantly surprised to see the R\u0026D department come up with this, but I didn't express it with an exaggerated expression.

You said it's impossible to replace DVD? Ding Huai asked suspiciously.

There is still some gap between technology and DVD, Zhang Ke nodded and said, To be precise, it should be a transitional technology between DVD and DVD...

The dvd format standard was proposed by companies such as Toshiba and Sony at the end of last year, and mature models will be launched as soon as the middle of next year. We have invested so much money, but we have only come up with transitional technology, and the transitional technology The life cycle is so short, it should not be of much value. Ding Huai said.

From a technical point of view, I can't judge how much value it has; in terms of potential commercial value, it is still considerable, Zhang Ke said with a smile, Although mature DVD players will be available next year, the promotion of DVD When it comes to the large-scale application of DVD digital video discs, even if it is jointly promoted by the current international giants, it will not be popularized until 1998 at the earliest. According to past practice, these international giants must first invest a huge amount of research and development in the early stage With all the funds recovered, the price of the DVD in the early stage will not be too low, and the focus in the early stage should be on the European and American markets...

...What will happen in China during this period of time? Zhang Ke continued, From my personal point of view, the influx of many complete machine manufacturers and the rapid expansion of production capacity will eventually make the domestic DVD player market Disordered and chaotic, this time point should be around the middle of 1997. Machine manufacturers all produce homogeneous products, and there is no obvious technological gap between them. In a disordered and chaotic market, there is no dependence on The possibility of technological competition, in order to survive longer, there is only one way to go, and that is the way to quench thirst with poison...

Price reduction? Xie Wanqing asked.

yes,

Price reduction, knowing that the price reduction is to quench thirst, but it is unavoidable, dying immediately is not better than living two days longer and then dying, Zhang Ke said, Why can non-brand DVD players survive in the market? It is because those brand-name disc players are cheaper than brand-name disc players. At present, the market for branded disc players is not fully saturated, so they can maintain a relatively high price. Now, in order to establish the brand of Aida, we invested almost no cost in marketing promotion in the early stage, and we are fortunate to have achieved some success. What is certain is that our success will greatly encourage latecomers, and the market means are easy to learn from. I believe that it will not take long for more disc player brands to emerge. The brand disc player market is saturated, and secondary brands must survive. , or if major brands want to compete for market share, they may take the initiative to cut prices. This is an endless cycle. Because of the homogenization of products, if one company lowers its price, other manufacturers have to follow suit, and we are no exception. The price convergence will soon lead to a second round of price reductions. Machines that cannot effectively control costs Manufacturers will be the first to be expelled from the market, and the surviving complete machine manufacturers can only maintain meager profits... This process is very fast, and the time point is around the beginning of 1998. At this time, in order to pursue more profits and a larger living space, large-scale complete machine manufacturers will actively seek to reduce the price of upstream components, the price of the core will continue to decline, and the monopoly of decoder board technology is likely to be eliminated. Breaking down, all of these will lead to a continuous decline in the price of disc players...Let’s analyze these time points, dvd players will not be promoted in overseas markets until the middle or end of 1998, and at a relatively high price; while in Before that, in the domestic market, due to the price war, the price would drop to a relatively low position. The price gap between the two would make the dvd phase-out process in the domestic market relatively slow, and there would be quite a long time to go. Life cycle, not only in the domestic market, but also in developing countries. Of course, the survival of the disc player does not mean that the complete machine manufacturer will survive well. Intervening in the production and sales of DVDs and sharing the high profits of DVDs in the early stage is a more suitable choice for powerful disc player manufacturers. However, in terms of time, it will be delayed until the middle of 1998 at the earliest before getting involved in the production of DVDs, and it may not be until the end of 1998 or even later before the product can be introduced to the market, because it needs the peripheral disc market cultivation. Since the middle of 1997, the profit margin has been very narrow, but it was not until the middle of 1998 or even later that new profit points could be found, but the profit scale will not be too optimistic at the beginning. In the past one and a half years, as long as the timing is well grasped, the super commercial value can be fully discovered...

It's so... Ding Huai sighed, It's not in vain!

Even from the perspective of technology accumulation, any technological breakthrough is of great value, Su Jindong said, According to Ke Shao's analysis, this year the R\u0026D center will come up with mature models, and it will start slowly at the beginning of next year. When the price war breaks out, all manufacturers will inevitably be dragged into the quagmire. At that time, we will focus on promoting new disc players, using super as our new profit point, and then actively waiting for the arrival of the dvd era...

Zhang Ke nodded and said: There may be errors in the specific time point, and the market trend is not bad. I am looking forward to the smoke in the market. In order to prevent other disc drive manufacturers from having concerns about us, before the super market is launched, we must do Good secrecy work... Also, the video disc production technology must also mature at the same time. There is no market if there is a disc player, but there is no disc! Several times faster...

In the original historical track, the emergence of super can only be regarded as tasteless, and it did not bring much profit to the disc player manufacturers. The main reason is the timing problem. For the issue of standards, the dispute was not until the middle of 1998 that the Ministry of Information Industry formulated a unified standard. Although this standard later became a global unified standard, it has nothing to be proud of. It was already eliminated at that time. technology only. Ultra was launched at the same time as dvd, and even ultra discs are rare on the market (ultra can read discs due to compatibility), and how valuable is it? In the end, it can only be sold at the price of disc players, and cannot compete with DVDs in the high-end market. Waiting for the price of DVDs to come down, Super and disc players will be slowly driven out of the market together.

Zhang Ke also did not expect that the R\u0026D department could come up with a super prototype two years in advance, and within half a year, it would be able to come up with a mature model, which would have enough time for operation.

As for the issue of standards, Aida Electronics currently occupies 40% of the disc player market, and the technical specifications of Aida Electronics represent at least a sub-standard form, not to mention that Shao Zhigang and Sheng Qing directly control the huge pirated disc development, Production and sales network.

When Zhou You, Cai Yujuan and others came over, they didn't bring up this topic again, but discussed the matter of spinning off the technology center.

Authority is not formed in a day. Zhang Ke has enough prestige in this small circle at this time, which is proved by the miraculous achievements in the past two years. In the autumn of seven years, the Asian financial turmoil is about to break out. Xie Wanqing, Su Jindong, Ding Huai and others still quite support his plan.

The technology research and development center was spun off and a specialized technology company was established. The research and development of the DVD player will also be entrusted to the technology company.

In addition, Aida Electronics has a 50% stake in a joint venture with the research institute specializing in the development of DVD cores, which will also be placed under the name of the technology company.

Zhang Ke, Xie Wanqing, Su Jindong, Ding Huai, Zhou You and others' shareholding ratios in technology companies remained unchanged.

After dinner, the discussions were over. Zhang Ke and Wan Qing went back in the same car. In the car, Zhang Ke said to Wan Qing: It seems that the price war of disc players is inevitable. My original plan, Even if it is unavoidable, it is necessary to delay the time as much as possible. After all, it feels good to enjoy high profits. Even Kewang Electronics, a joint venture between Chint and Jincheng, will make money from it. There is no way, after all. In business and business, you can't hurt yourself for hurting others. I didn't expect Lao Ding to be able to make a super out of it. It's really surprising. I can't confess my crooked thoughts in front of Su Jindong and Ding Huai. Now it seems The sooner and more fierce the battle, the more valuable it will suddenly become. It’s really exciting, and now I’m worried that Chint and Jincheng’s investment in this place is not enough...

(to be continued) ()