When will I have a long tassel?

Tuo was brought down by the New Jingwei Company.

Before making the decision to close the China office, Tuo's senior executives did not believe that they would be dragged down by a sloppy Chinese company. But when the company's revenue dropped off a cliff for two consecutive years and the profits on the financial statements turned from positive to negative, Tuo's management had to admit that they had been careless...

New Jingwei Company has only one means to challenge Tuo's hegemony, and that is open source.

Before New Jingwei, there were already more than a dozen open source software in the industrial software market, but none of them had any visible impact on the entire market. These open source software have relatively single functions and lack good after-sales service. For cash-strapped students, it doesn't matter if they use such software to do some coursework. Companies will not use this software just because they are free, because the time wasted in the use process is far less valuable. More than the cost of purchasing a piece of commercial software.

Huaxia CAD launched by New Jingwei Company on the open source market is a fully functional software that has the ability to replace commercial software such as Tuo. The most important thing is that New Jingwei's open source business is not a one-time deal, but a continuous release of new modules. The functions of these new modules are very powerful. If users want to purchase the same modules from Tuo, it will cost tens of thousands of dollars, but New Jingwei Company has put them on the free platform, which makes users unable to refuse.

From the beginning, Tuor did not think that New Jingwei would be a strong opponent. They believed that New Jingwei launched such a suicidal charge just to vent their anger because there was no hope of competition. Tuao has lowered the price of some software and also provided some free function modules to users to offset the impact of Huaxia CAD's open source.

According to the thinking of Tuao's management, New Jingwei is simply unable to maintain the open source model, let alone launch more functional modules without any profit. As long as Tuao stabilizes its business, New Jingwei will have spent all its money. Naturally, it went bankrupt. At that time, Tuo will find some ways to raise product prices to make up for the shortfall during this period, and it will still be able to become the dominant player in the industrial software market.

What Jean Tuo did not expect was that New Jingwei Company was extremely resilient and showed no signs of running out of funds. As the resources of Huaxia CAD on the network platform become more and more abundant, many amateur programmers have also joined the ranks of developing functional modules for Huaxia CAD. You know, these people all bring their own dry food to work on a voluntary basis. What they want is only the pleasure of programming and the sense of accomplishment brought by having the modules they compiled are downloaded.

Once an open source software enters this state, it will have a virtuous cycle, and it will get better and better, leaving commercial software on the market with no place to stand.

What Tuao doesn't know is that the reason why New Jingwei Company dares to compete with it is because there are two powerful pillars behind it. One is the human resources of China's major universities and scientific research institutes, and the other is the group headed by the Science and Technology Commission. Strong funding for substantive departments.

While Tang Zifeng proposed the prescription of open source to New Jingwei Company, he contacted the Ministry of Education, Science and Technology Commission and other departments, and obtained a policy from them, that is, modules contributed to open source software can be included as the results of scientific researchers. Among the conditions for professional title promotion.

Professional titles are hard currency in the scientific research system, and this hard currency has no cost. Countless scientific researchers are tempted by the cake of professional title promotion and spare no effort to devote themselves to the cause of developing special modules. In order to distance their results from their peers, these people have read through the literature and integrated the latest research results in the industry into software modules. Their response speed is even pursued by the big guys in the Tuo Technology Department. Not available.

The Science, Technology and Industry Commission and other departments have gained visible benefits from New Jingwei's open source. Many military industry departments used to spend a lot of manpower to develop special software modules. Now many modules have been developed by volunteers. They only need to make some small changes before they can be used in design practice. The manpower and financial savings saved are immeasurable. number.

In order to combat New Jingwei, Tuao lowered the price of some software, which also allowed many domestic companies to save a large amount of software procurement expenses. Under Tang Zifeng's lobbying, the Science and Technology Commission and other ministries and commissions agreed to place R\u0026D orders with New Jingwei Company. In fact, they used part of the money they saved to fund New Jingwei Company to maintain the open source business.

The intellectual and financial resources of a country cannot be matched by just a Tuao company. Tuao's management is looking forward to the bankruptcy of Xin Jingwei every day, but Xin Jingwei is getting more and more prosperous, without any signs of decline.

Time passed in despair. Tuo's customers continued to lose. Those customers who reluctantly stayed also made strong demands to Tuo, claiming that if Tuo could not lower the price of software and services, they would consider starting from Tuo. I found an open source software online to use.

Faced with the severe situation, Tuao made several rounds of price cuts on its products, finally bringing itself to a serious loss. The report submitted by the marketing department also alarmed Tuao's senior management. The report stated that Huaxia CAD's market share in the global market has approached Tuao, and it is only a matter of time before it eventually surpasses Tuao.

Tuo has taken a series of self-rescue measures, including complaining to some international trade organizations about unfair competition by New Jingwei and increasing the extent of profit concessions to customers, but all these measures failed to reverse Tuo's decline.

"It's really not our fault that Tu'ao is in this situation today." Li Kejia said with a smile, "It's because they are too greedy. The price of software is rising every year, and the price of supporting modules is too high to make sense. We at New Jingwei When it was open source, many customers told us privately that they supported us in defeating Tuor, and we could no longer let Tuor lie on them and suck their blood.

"To paraphrase an old saying, 'The world has been suffering from Qin for a long time.' We are just the ones who call out the princes and generals to Xiang Ning."

"Actually, Tuo was very humble when he first started his business." Liang Zile interjected. He studied business administration and knew more about these things. He said: "At that time, some industrial companies developed their own design software, and there were a large number of small software companies on the market that could provide these companies with cheaper design software. Tuo relied on low prices and high-quality services, and gradually The elimination of small software companies also changed the usage habits of industrial enterprises, making these enterprises dependent on Tuao's software.

"After that, Tuo began to collect monopoly benefits. Because there are no similar companies in the market that can compete with it, users can only accept its software even if its price is relatively high.

"Tuao would rather use the profits earned for advertising and channel promotion than lower the price to give profits to customers. Under the influence of Tuao's publicity, customers also recognized its high price and felt that the high price represented High quality, this is the effect of commercial brainwashing.”

Xiao Wenjun said: "Actually, those of us who work in design know that Tuao's software is not worth so much money, and at least 70% of its price is false."

"That's what Senior Brother Tang calls the IQ tax, right?" Bao Nana commented with a smile.

Xiao Wenjun smiled and said: "You can say that. However, Tuao software is indeed better than Huaxia CAD. This must be admitted, but its advantages are not worth the price difference. If I paid for the software myself, I’m afraid I won’t be able to bear to buy Tuao Software.”

Wang Zijie said: "Professor Xiao is right to the point. It is precisely because the money to buy software is not spent by engineers themselves, so they do not care about the cost-effectiveness of the software. For those large enterprises with annual turnover of dozens or even tens of billions A set of software that costs several thousand dollars is not worth mentioning. In addition, the technical department often has a relatively large say in the enterprise, so the problem of the unusually high price of Tuo software does not matter. "

Li Kejia said: "What Zijie said doesn't matter is based on the premise that Tuao has no competitors. As soon as we open source, everyone will have a comparison. Enterprises don't care about software worth several thousand dollars. A plug-in worth tens of thousands of dollars , companies need to think carefully.

"Tuot charges people tens of thousands of dollars, but we provide it for free. It's impossible for customers not to have some ideas. Over time, everyone will think that Tuot is not honest, and once they have this idea, customer loyalty will It just went down.”

Liang Zile said: "So I saw some articles in the West saying that China is a disruptor in the international market. Of course, these articles are not aimed at Tuao, but at the impact of many Chinese industrial products in the Western market. It has defeated its local counterparts and forced them to either go bankrupt or suffer serious losses, which has never happened in the past.”

"We are facing this problem now." Su Hua said, "The minimum price of a home-grade drone in the U.S. market is US$3,000, which is equivalent to 25,000 yuan. And our drones are even better than theirs. Fortunately, the price of one unit is only over 3,000 RMB.

“When we first entered the U.S. market, American users did not believe in our products and thought that the quality of such a cheap drone must be very poor. But after some people used it, they found that the quality of our products was no better than that of the United States. The products were inferior, so everyone came to buy our products.

“Some time ago, several drone companies in the United States jointly filed a lawsuit against us, saying that we engaged in dumping, and the term they used also said that we were a spoiler.

"To be honest, the cost of drones is actually very transparent. Even if our drones are sold for 3,000 yuan, there is still a high profit. I really don't know how those drone companies in the United States dare to mark the price. To 3,000 US dollars, this is really what Sister Bao just said, charging American consumers an IQ tax."