Reborn Tycoon Rise

Of course, cooperation with Ueberroth cannot be finalized in just a few sentences. In order to determine the details of the cooperation, the lawyers prepared more than 60 pages of contracts regarding the agreement between the two parties, including the location of each stadium billboard and camera exposure. time, advertising in TV programs during breaks, etc.

Moreover, as the only electrical appliance sponsor, all electrical appliances in all Olympic venues and residences of athletes, journalists, and volunteers are Midea brands, including air conditioners that Midea currently does not have finished products.

Ten million US dollars was spent, but it was very cost-effective. As a turning point in the history of the Olympic Games, the 84th Olympic Games had a very obvious publicity effect on major sponsor brands. In addition to advertising reforms, the most fundamental reason is that it was held in the United States. The Olympic Games have attracted a lot of interest from the American people, and Americans are the largest market for almost any product in the world.

As for whether the price is high, Coca-Cola spent US$12 million and Fujifilm paid US$7 million. Whether it is a good deal or not depends on the effect of the advertising!

On the other hand, this is also the first time that the mainland has participated in the Olympics since the reform and opening up. The government attaches great importance to this. In the mainland, which is tired of entertainment programs, an Olympic Games attracts almost all the attention. Any brand advertising at this time will be a huge profit.

For example, Jianlibao spent 250,000 yuan to sponsor the Olympic Games in 1984, and then successfully developed. Ten years later, its market share ranked first in the country.

But this time, Xu Zhi took over almost all the billboards for the gold medal-winning events in the history of the Mainland. As long as the Olympics are over, the Midea brand will become famous in the Mainland!

…

After settling the matter in Los Angeles, Xu Zhi returned to New York. He Guoyuan had already arrived at the hotel. This time his mission in New York was to negotiate with RCA.

Although it was strange why Midea needed to purchase 3 million different color tubes at once, as an order with a total transaction value of more than 300 million US dollars, RCA was extremely cautious and sent the vice president of the company's electrical appliance department to discuss the matter.

After nearly a month of negotiations, He Guoyuan's negotiations with RCA have almost completed the details. 3 million 14-29-inch color tubes, with a total value of up to 370 million US dollars. However, for such a large deal, the final signature must be personally signed by Xu Zhilai Finish.

RCA is headquartered in New York. Xu Zhi personally visited the most innovative company in the United States. Wade Beltz, the head of the company's television business, also personally accompanied Xu Zhi to visit RCA's laboratory:

The first black and white television was born here!

The first color television was also born here!

The first solar cell!

The first military inventory management computer!

The first LCD screen

Too many firsts and too many honours. RCA's mainframe computers were once second only to IBM in the market. However, due to the wrong choice of strategic route, and in order to protect the profits of its own color tube market, it maliciously stifled the development of the LCD industry. Chance.

Although RCA is still one of the top 50 companies in the United States today, its edge has been lost and its diversified development has failed. The company's former main business, televisions, has encountered strong competition from its Japanese counterparts. The only company that is developing well is NBC TV station.

Wade Beltz took Xu Zhi and others around the building, and after returning to the reception room, he said: "Mr. Xu, we are very cautious in our cooperation with your company, but regarding liquidated damages, your company The requirements are really too high!”

"I think on the contrary, I think this liquidated damages is still too low!" Xu Zhi said with a smile: "Mr. Beltz, our company's products involve arcade machines. In recent years, arcade machines are an emerging market industry with very high profits. The main component of the arcade machine is the color picture tube. Originally, our company issued purchase orders to RCA, Hitachi, Sharp and other companies at the same time, but now in order to save procurement costs, we have decided to purchase exclusively from one company.

The main purpose is of course to save costs, but it also takes a lot of risks. Once the supply of color tubes is not available, our arcade production will stop, and the losses will be very large. In order to avoid this When circumstances arise, higher liquidated damages are a must. "

Wade Beltz nodded and said: "I can understand this, but your company also requires restrictions in the contract. It must only purchase color tubes from Wanwan Taoyuan Branch. This is why, we have several RCA locations around the world. Production base, quality is absolutely fine.”

Xu Zhi shook his head and said: "We only accept products from Wanwan because I don't believe in the work efficiency of Mexicans. I think Mr. Beltz should know better than me!"

Wade frowned. This was indeed a problem. From the late 1960s, Japanese TV began to rush into the American market. RCA's market share was declining day by day. In order to reduce the production costs in the United States, the company began to expand production in Africa more than ten years ago. Developed areas invest in building factories in order to reduce production costs.

RCA also chose Gulf, Mexico, and Romania for investment, but in the end the lowest production cost was the Gulf factory. Although Mexico is close to the United States, the local politics are corrupt, gangs are rampant, and the quality of the personnel is low. Not only does the cost not decrease, but it often happens Some quality problems have caused headaches for the struggling American executives.

Xu Zhi added: "Our order this time has fully taken into account the production capacity of your company's Wanwan factory. An average order of 1 million color tubes is placed every year. With the Taoyuan factory's annual production capacity of 5 million units, it is completely feasible." Of course, if your company is really unwilling, we won’t force it. I think Japanese companies are very willing to accept this order.”

"Mr. Xu, this order is not a problem at all!" When Wade heard that Xu Zhi planned to contact the Japanese company, he immediately said it without hesitation: "I personally agree with this contract. As long as it is approved by the board of directors of my company next time, we will The contract can be formally signed.”

"Nice, then I wish us a happy cooperation!" Xu Zhi said with a smile, stood up and shook hands.

"Happy cooperation!" Wade also stood up and shook hands, feeling relieved at the same time. Ever since he received such a large order contract from Midea, he had started negotiations with He Guoyuan non-stop.

With a total order volume of US$370 million, even if He Guoyuan lowers the price, the profit can still be as high as 10%. On average, the net profit is at least US$10 million a year.

For RCA's annual profits of more than 300 million U.S. dollars, this is nothing, but the company is currently losing money in a large number of branches, relying entirely on NBC TV station's huge profits to stop losses. If it can get a large order from this Asian customer , not only can the color TV department turn losses into profits, but more importantly, it can find a long-term partner in Asia. This is the most important thing.

It's just that the other party's demand for liquidated damages is a bit high: if RCA cannot provide color tubes on time, it will need to compensate half of the price of the color tubes.

Under normal circumstances, this kind of request is considered too high a compensation. However, considering the huge profits of the other party's arcade, if this happens, the other party's losses must be quite large. From this point of view, a high proportion of liquidated damages is not considered. Too much.

Xu Zhi glanced at He Guoyuan and said to Wade: "Okay, then I won't bother you. I'm visiting New York these days. I hope to get word from your company's board of directors as soon as possible!"