Rebirth of the Strongest Tycoon

Huo Jianning looked a little dignified and said slowly: "The first problem is the cost problem. The production process requirements of CD discs and CD players are very high, and the production cost cannot be reduced for the time being."

"The production department has made detailed calculations. If the annual output is set at 100,000 units, the cost of each CD Walkman will be $162, which is very close to that of Tiangong SP-S1 Walkman. Wholesale price!"

"Considering a series of uncertain costs such as the company's operations, follow-up technology R\u0026D investment, and marketing, the ex-factory price should be controlled at US$575, and the unified official retail price would be around US$760. ."

"The price is too high, more than three times that of the Tiangong SP-S1 Walkman."

"Such a high price will seriously hinder the development of the CD Walkman market, and the sales prospects are also uncertain."

"So now the company can't make a conclusion, whether to launch it now, or to develop it for a period of time for the cost problem, and then commercialize it after the cost is reduced."

After speaking, Huo Jianning looked straight at Xia Yu, waiting for his opinion.

The inability to reach a consensus within the company actually means that he is still hesitating. If he, the company president, has made a decision, how can the people below dare to object?

Bringing a product to the market is not so simple, especially since this product is used for the first time to open up the market.

Even if it is successful, it is not a matter of sitting back, because the high price will limit the number of customer groups, even if it occupies an early advantage, as long as similar products can be sold at low prices, they can quickly seize the market.

What Huo Jianning is considering is whether to continue to reduce costs, and then try to seize the market at one time and occupy an absolute leadership position, so that even in the face of later competitors, he can deal with the competition calmly and calmly.

Xia Yu thought for a while, narrowed his eyes slightly, and said in a deep voice, "I know your worries, but since the product has been developed, don't waste your time."

"It doesn't matter if the price is high. There are low-price marketing models at low prices, and high-price marketing methods at high prices. The key is how to market. There is no shortage of rich people in the world, and some of them are Walkman fanatics. Aim at this group of people to make a fuss."

"As long as our products take these people down, they will naturally help us promote it, and our market position will be able to occupy first."

"The window period before other competitors launch the same product is the time for us to work hard to reduce costs. This requires Dr. Lu and you all to work harder."

"After our peers have launched similar products, we will launch a second offensive to bring cost-reduced products to the market and continue to seize the mid-to-low-end market."

Hearing this, Lu Chao said resolutely, "Chairman, I will definitely do my best!"

Xia Yu looked at the thoughtful Huo Jianning again, and suggested, "Jianning, let me give you an idea in terms of marketing, you can ask the dealers around the world to investigate all the Walkman fans, and when the product is released, , in addition to the response of media resources, it is also necessary to specially invite these influential fans to the scene, they are the spreaders and fermenters of our word-of-mouth."

Huo Jianning nodded and said, "Chairman, I understand, I will do as you say."

Xia Yu nodded with a smile and asked casually, "What is the second question?"

Huo Jianning suppressed the smile he just showed, took a deep breath and said: "Chairman, this second question is about CD records. CD records are a brand new market, unlike the vinyl record market that already exists, so we develop At the same time as the CD Walkman, the CD record market must also be developed.”

"There is not enough supply of CDs, and consumers can't use the CD Walkman they bought."

Hearing this, Xia Yu already understood what Huo Jianning meant, and his brows could not help frowning.

This is indeed a big problem.

He thought for a while and asked, "Since you have considered this issue, you should have thought about how to promote CD records, right?"

"Chairman, we have analyzed it."

"This has to be linked to the current global music market. There are two modes of record production. The first is asset-light management. Music companies do not have their own record studios, but entrust albums to professional record studios. The second is the asset-heavy management method. The music company operates the entire industry chain. The music company has its own record recording factory, which produces and distributes its own albums. Your Universal Music Company is the second model.”

"Because of the technical issues with CDs, a recording device costs five times more than a mature vinyl recording device, and CDs cost more than vinyl tapes."

"So in the case of an uncertain market, other music companies and record production companies may not necessarily invest a lot of money to buy CD recording equipment from us, or even deliberately fight. After all, CD records are competitors of vinyl records, and we have violated the interests of the original stakeholders.”

"Your Universal Music company will definitely support it, but Universal Music's music copyright is very limited, and our Mandarin and Cantonese songs are not listened to in Europe and the United States."

"Actually, this is the most critical issue, and it is very difficult for the company to solve this issue."

"The most obvious thing is that Polygram International Co., Ltd., the world's largest music giant, is now suppressed by Universal Music in Hong Kong, but its music library is much stronger than Universal Music."

"I have made a special investigation. The predecessor of Polygram International Co., Ltd., DGG/PPI Group, was formed in 1962 by the merger of Philips Records under Philips and the world's most famous classical music record under Siemens. In 1980 In 2008, it acquired Decca Records, a famous classical music company in the United Kingdom. Originally, Philips Records merged with Macrae Records in the United States. Therefore, Polygram International Limited’s influence and music library are all over the world.”

"Now Polygram International Limited has only two major shareholders, one is Philips of the Netherlands and the other is Siemens of West Germany. Philips is our main competitor, so we dare not go to Polygram International Limited, As long as we find it, Philips will know it, and Philips will definitely not let PolyGram International Co., Ltd. cooperate with us. When the news is known to them, we will be extremely passive."

After Huo Jianning finished speaking at one time, he suddenly felt a sense of relief.

This problem has been in his mind for a long time, but the chairman Xia Yu has never come back, and the CD Walkman has not been developed before, so he waited until now to tell Xia Yu.

In his opinion, at this level of problems, only the chairman can solve them, and he is helpless.

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