Rebirth Starts From 2006

Looking at Mr. Wu who seemed a little excited, Chen Yang smiled and said meaningfully,

"Whether it's technology, industry, trade or trade, industry and technology, Lian Xiang has their own ideas. However, I would like to hear what you think of the impact of their acquisition of the ibpc division?"

Since Lianxiang acquired the ibpc business unit, it has often regarded itself as a national brand hero, and there are endless posts touting it on the Internet, which has greatly boosted the sales of Lianxiang products.

From the perspective of Chen Yang's later generations, one can easily conclude that this is hype.

However, Lian Xiang’s approach is similar to his strategy of revitalizing national brands.

However, their example has also played a bad leading role.

Chen Yang wanted to know if the military commander in front of him could see the hidden dangers.

After hearing what Boss Chen said, Mr. Wu immediately said seriously,

"Dr. Chen, I want to correct something here. Rather than saying that Lianxiang acquired ib's PC division, it is better to say that two IT manufacturers have reached a strategic cooperation.

Lianxiang Group invested US$1.25 billion, including US$650 million in cash, and a continuous investment of approximately US$600 million based on the closing stock price on the last trading day before the deal was announced in December 2004. Think about stocks,

In addition, Lenovo will also assume net liabilities of approximately US$500 million from ib.

This equals the total price paid by Lian Xiang, which is US$7.75 billion.

After the acquisition is completed, the Chinese shareholder Lianxiang Holdings will own about 45% of the shares of Lianxiang Group, and ib company will own about 18.5% of the shares of Lianxiang Group.

Combined with the background and motivations of this merger, it is not difficult for us to see the key.

What was the situation at that time?

On the one hand, Lianxiang, which has occupied a leading position in the market for many years, has been facing strong challenges from local manufacturers and foreign companies in the domestic PC business field.

In the domestic market, due to the continuous vicious price war, the profit margin of the PC industry has been squeezed thinner and thinner. If Lianxiang Group wants to gain more space in the PC business and find new profit growth points, then , it is imperative to go abroad,

At that time, before acquiring ib's PC business, about 3% of Lianxiang's revenue came from abroad, but mainly from Southeast Asian countries.

If they want to fully penetrate the European and American markets, they may not be able to do so on their own, or given the characteristics of their products.

Therefore, Lian Xiang is eager to find an internationally renowned brand as a ticket to enter the high-end market.

Looking at ib again, everyone thinks they are geckos with their tails docked, but this is not the case.

According to data released by authoritative companies, Lianxiang occupied 2% of the global PC market in 2004, ranking ninth, between Gateway and Apple Computer.

What is ib's market share?

Fully 5.6%, ranking third after Dell and HP, more than double and nearly three times that of Lianxiang.

It can be seen that ib's PC business is not as unsustainable as the world says.

The reason why they want to abandon the PC business is because they want to transform into a high-end IT consulting service provider.

For ib, the PC business with relatively low technical content is no longer the main profit point. It has instead focused on computer services, software, servers and storage, as well as computer chips with higher technical content and greater profitability. Strong high-end market,

Therefore, selling off the PC business and concentrating resources on developing high-profit businesses such as servers and services has become an excellent choice for ib."

Mr. Wu spread his hands and said seriously,

"Getting rid of the PC division will allow ib to go into battle with ease. However, their purpose is to transform, not to bid farewell to the industry.

So, it is undoubtedly a very good option to become a strategic partner of the PC manufacturer in the world's largest market through this PC division that was originally planned to be abandoned.

After the transaction is concluded, for ib, through this identity, they can continue to provide higher-profit services to Lianxiang, successfully develop upstream, and occupy a leading position in the industry.

For Lianxiang, they only paid part of the shares and got the ticket to enter the foreign market in the way of She Tunxiang, and became the top three PC companies in the global market share. By the way, it can also improve the domestic market. share, propelling them to become number one in the world,

That's why I said that this acquisition is actually a strategic cooperation between two Chinese and American IT vendors, rather than a simple merger. "

"Well,"

Chen Yang smiled and nodded,

Frankly speaking, at this time, everyone in the industry and outside the industry had a positive attitude towards Lianwan's acquisition of ib's PC business. It was not like ten years later, when everything became clear and many experts emerged after the fact and were concerned about this matter. The analysis of the acquisition case was clear and logical.

Mr. Wu can say these words, which shows that he does have unique insights and is not the kind of person who just follows what others say.

Of course, although there are not many people in the industry who have this opinion, there are still many. Occasionally, you can still see some similar analysis, but it is just submerged in the praise of hydrology without making any waves.

Otherwise, President Wu's value will be even higher.

However, where there is an opinion, there is an opinion. Unfortunately, this is not what Boss Chen wants to hear.

He looked at Mr. Wu and smiled, "What then?"

Then?

Only then did Mr. Wu remember that what Boss Chen asked was his opinion on the impact of the acquisition, not the incident itself.

This was not a problem for him. After hesitating for two seconds, Mr. Wu said,

"I think this matter can be viewed in two, with both pros and cons."

Chen Yang nodded, leaned on the sofa and looked at him, waiting for him to continue,

Mr. Wu took a sip of tea and then said, "First of all, from the perspective of brand influence and marketing, this merger and acquisition case of Lianxiang can be said to be very beautiful. It not only created the limelight of a national brand, but also gained huge actual benefits,

Judging from the results in the past few years, they have completely achieved the results they originally expected. "

After a pause, he continued, "But that's where the problem lies."

Seeing that Boss Chen was still smiling but silent, Mr. Wu sighed secretly. It was really hard not to praise him.

There is no other way, so just say it alone.

Then he coughed dryly, raised his voice slightly, and said seriously,

"As I said just now, it's a question of whether to pursue technology, industry and trade, or trade, industry and technology.

Before the acquisition of the ibpc division, there was considerable controversy within Lianxiang. Some insisted on the original idea and wanted to carry the banner of the national computer industry and strive to develop computer-related technologies, rather than treating themselves as an ordinary profit-making company. company,

Others believe that as a company, the first priority is to make profits. Only after making profits can there be funds to support research and development.

Moreover, this group of people also believe that the development of computer technology itself is not just a matter for one company, but an issue that should be considered by a higher level.

Enterprises should do what enterprises should do. If a company wants to strengthen research and development, it must be because of the needs of the enterprise, not for certain tasks.

Originally, the two views were on equal footing, but after the two companies reached a strategic cooperation and after several years of development, the voice of Mao, Gong, and Technology clearly overcame the voice of Mao, Gong, and Mao,"

Having said this, Mr. Wu straightened his back and his expression became more serious.

"Normally speaking, which route to take is an internal issue within Lianxiang Company, and outsiders should not comment too much on it. However, as the largest PC company in my country at present, and an enterprise developed from a state-owned enterprise, their development This method has become the target of imitation by many peers and even companies in other industries.

A high-tech enterprise does not pay attention to technological development, but achieves success through market mergers and acquisitions.

So does this show that other companies can also succeed through this path? "

Mr. Wu spread his hands and said with a wry smile, "This is what I'm worried about. With Lianxiang's social influence, this possibility not only exists, but is also very large.

If things go on like this, a very bad trend will be formed within high-tech companies and even the whole society, that is, not paying attention to the iterative development of products.

Perhaps after gaining a certain market position through a flagship product, corporate decision-makers will shift their focus to the market. For peer companies, they will either suppress or acquire them.

This kind of culture is very unfavorable to technological development! "

After a pause, he may have felt that what he said was a bit too broad, so he brought the topic back and said,

"Looking at the two companies Lianxiang and ib, once Lianxiang determines the trade, industry and technology route, it no longer attaches importance to independent research and development of technology, but hopes to acquire it through mergers and acquisitions or licensing.

I'm sure that in the near future, they will be controlled by foreign companies, especially ib companies that provide them with IT consulting services.

According to the laws of enterprise development, there is absolutely no second possibility! "

Chen Yang pursed his lips and took a deep breath.

There is no doubt that President Wu’s prediction later became a reality.

But this has nothing to do with Chen Yang. He has never thought about taking the initiative to change anything. He should be himself. After his influence is large enough, he will naturally be able to change something.

Didn't Lianxiang lead other companies astray? It doesn't matter. After companies like Damai, Zhanrui, and Dajiang become successful, these companies will find that they need to be strong themselves in order to forge iron.

If you want to gain a foothold in the fierce market competition and occupy a favorable position, you cannot obtain it by relying on market competition alone. Instead, you must first be strong yourself. Only with core competitiveness can you have the ability to let the market follow you.

At this moment, he heard Mr. Wu say again, "Actually, when Honggu Capital acquired Zhanxun, I originally wanted to leave the company and start my own business.

However, later I found out that it was Honggu Capital, which controlled Damai, so I decided to stay and take a look.”

Mr. Wu smiled and said, "DaMai spends 20% of its revenue on research and development every year. This has spread throughout the industry. Which company's technical engineers do not envy Damai's generosity? Naturally, I am the same.

Later, the situation in Zhanrui turned out to be as I expected. It was precisely because the decision-makers paid attention to R\u0026D that our management and R\u0026D teams were able to devote themselves to scientific research without any worries.

I believe that as long as we are given enough time, Zhanrui’s future will be better than Lianxiang’s,”

After a pause, he said again,

"Not only Zhanrui, but also companies such as Damai and Dajiang that value R\u0026D will be better!"

Chen Yang looked at him and smiled and said,

"Mr. Wu, I invited you here today for this reason."

"oh?"

Mr. Wu immediately showed a curious look, leaned forward and said, "I would like to hear the details."

Seeing him like this, Chen Yang immediately gave a thumbs up secretly.

This kind of conversation is interesting, unlike Wang Tao, who just nods and shakes his head blankly, and doesn't know any skills in complimenting.

Then he coughed dryly and said seriously, "I have a piece of news here. You just need to know it yourself. There is no need to spread it to others."

Mr. Wu nodded without hesitation, "Understood."

Chen Yang said, "In view of the development achievements of the past 30 years, many private enterprises have grown and developed. It has been decided to select a few representative or strategically important enterprises to allocate resources according to the standards of state-owned enterprises. Provide support.”

Upon hearing this, President Wu immediately blushed and said, "Who is this She Zhanrui!"

There may be a few companies engaged in chip research and development at present, but companies that combine chip research and development and production are definitely rare. Coupled with the identity of a private enterprise, if you look at the country, Hays, which is just a flower, may be worth something.

But Hayes has been established for so many years. Except for some achievements in security chips in the past two years, the rest is completely unsatisfactory.

On the contrary, Zhanrui was formed on the basis of the original Zhanxun and Ruidike, and naturally inherited the technical achievements of these two companies. For now, it is a proper domestic leader.

Except for Zhanrui, no one else is thinking about this quota.

Besides, since Boss Chen called him over, it was obvious that there was something going on.

Sure enough, Chen Yang nodded with a smile and said, "I got confirmation from the leader that Zhan Rui was indeed on the list.

Therefore, starting from next year, the higher authorities will provide targeted support to Zhanrui. You can sort out what needs you have, summarize them, and submit them together when the time comes. "

Mr. Wu nodded repeatedly, "I understand. I will do this myself when I get back."

Chen Yang nodded, then his smile faded, he leaned forward slightly, and said in a serious voice, "Mr. Wu, here, there are two things you need to pay attention to."

"Um,"

Mr. Wu's expression changed slightly, "Please tell me."

Chen Yang said, "First of all, this support is not disclosed to the public, otherwise it will have a bad impact. Even if it is guessed, it cannot be confirmed. You have to remember this."

President Wu immediately said, "Don't worry, I guarantee that I am the only one who knows about it in Zhanrui."

It means that if the news leaks from you, it is none of my business.

Chen Yang smiled nonchalantly and continued, "Second point, you must also pay attention to keeping a low profile when acting. Although Zhanrui's main market is the mainland, products equipped with Zhanrui chips will be exported. to foreign countries,

If these cooperation arouse the vigilance of some foreign parties, it may cause unnecessary trouble. "

Hearing this, Mr. Wu's heart tightened slightly. After pondering for two seconds, he nodded solemnly, "I understand. I will pay attention to how I work."

Later, the two exchanged views on Zhanrui's development plan for next year. Especially after receiving new resources, certain tasks will need to be adjusted accordingly.

For example, in terms of research and development, it is no longer a matter of doing things behind closed doors. Several top related research and development institutions in the country can help Zhanrui.

Although cooperation cannot be carried out in a big way, just a part of top-secret information, or the other party's help in solving a few key problems, is a great help.

These specific details need to be implemented one by one after President Wu returns.