Reborn Industrial Tycoon

Chapter 463 The beginning of the three-bounce era

In the conference room of Gufeng Group, Huang Baifa convened the group's leading cadres to discuss countermeasures.

After briefly describing the price reduction of Fukang Agricultural Machinery, Huang Baifa said: "This is the situation. Today's meeting is mainly to discuss whether our group should continue to invest in the rear axle assembly project."

Everyone lowered their heads and no one spoke. Huang Baifa could only name him and said: "Manager Wang, you are in charge of R&D. Please tell me first!"

The manager surnamed Wang coughed dryly and said: "The rear axle assembly of agricultural vehicles is a new project for us, and I have personally participated in the entire research and development process.

In order to develop the rear axle assembly, the group has invested more than five million yuan. The scientific researchers worked overtime and overcame many difficulties. Finally, they achieved phased results and successfully developed the first-generation rear axle assembly.

become.

Now our scientific researchers have begun to research and develop the second-generation rear axle assembly. If we stop investing in research and development, the second-generation rear axle assembly will definitely not be produced.

What's more critical is that all the technology accumulation we made when developing the first-generation rear axle assembly was in vain. The previous investment of five million was in vain, and the hard work of the scientific researchers day and night was all wasted.

"

Manager Wang is in charge of research and development, so naturally he doesn’t want the project to be axed.

Someone next to him said, "But this project can no longer bring profits to the group. The reason why the group was willing to invest in the rear axle assembly project before was because it hoped that this project could bring huge profits to the group.

Now Fukang Agricultural Machinery has reduced the price of the first-generation rear axle assembly by 30%, which is equivalent to selling it at cost price. At such a price, there is no profit at all, and it can only be regarded as capital preservation.

More importantly, the second-generation rear axle assembly of Fukang Agricultural Machinery is also sold at a 20% price reduction. Even if we successfully develop the second-generation rear axle assembly, it will no longer be profitable.

If you continue to invest in this project, it will be a waste of millions of scientific research funds, so I think this project should be suspended immediately and the losses should be stopped in time!"

With these two people offering advice, everyone expressed their opinions one after another.

"Five million has been spent on this project, but it has not brought profits to the group. If it continues, it will burn money. I think this project should be terminated." Someone said.

"Currently, it seems that research and development of the rear axle assembly is indeed burning money. This is mainly because our technology is not good enough. Once our technology is improved and reaches the domestic advanced level, we will definitely be profitable," another person retorted.

.

"Then we have to go through the hurdle of Fukang Agricultural Machinery first. Agricultural tricycles are made by Fukang Agricultural Machinery. They have been making rear axle assemblies for some years, and they have richer technology and experience than us."

"Yes, this time the price reduction of Fukang Agricultural Machinery is clearly aimed at us, causing all our initial investment of five million to be in vain."

"So as long as we catch up with Fukang Agricultural Machinery's technology, we won't have to worry about being stuck. As far as I know, the rear axle assemblies currently sold by Fukang Agricultural Machinery are only one generation more advanced than ours. We work hard.

, we can still catch up.”

"Really? But according to the information I have, Fukang Agricultural Machinery's latest agricultural vehicles are already using the latest generation rear axle assembly, which has much better performance than the second generation rear axle assembly they currently sell.

And I suspect they have a better rear axle assembly."

"Fukang Agricultural Machinery has been researching and developing rear axle assemblies for so many years. No one knows how advanced Fukang Agricultural Machinery's technology is. If their technology is really much ahead of ours, if we develop one generation of products, they will cut the price of one generation of products.

It’s always us who suffer.”

Everyone discussed for a long time and were roughly divided into two factions.

One group wants to continue research and development. This group believes that since the five million yuan in research and development expenses have been spent, if it stops now, all the previous investment in research and development will be in vain.

The other group believes that continuing research and development is losing money. Even if the research and development is successful and a new rear axle assembly is produced, once the price of Fukang Agricultural Machinery is reduced, Gufeng Group will still not make profits. Therefore, it should stop immediately to avoid future changes.

big loss.

After everyone argued for a long time, they finally turned their attention to Huang Baifa, who had to make the final decision on such a matter.

At this time, Huang Baifa had a plan in mind.

Huang Baifa let out a long sigh and said, "In this rear axle assembly project, the R&D department has indeed put in a lot of effort and achieved fruitful results. It can be regarded as a successful completion of the task delivered by the group."

Huang Baifa's words are equivalent to affirming the contribution of the R&D department and making it clear that project failure is not the R&D department's problem.

Then he changed his tone and continued: "However, this project did not achieve the expected benefits. I think this is mainly caused by the pressure of competitors, rather than the mistakes of the group's decision-making."

Huang Baifa's words directly threw the blame to Fukang Agricultural Machinery.

It has to be said that Huang Baifa does have some tricks. When he encounters setbacks, finding a foreign enemy to take the blame not only makes his subordinates breathe a sigh of relief, but also promotes internal unity.

Huang Baifa continued, "This time the pressure from our competitors came very suddenly to us, but I guess the opponent must have made sufficient preparations, so they took action.

As the saying goes, knowing yourself and the enemy means you can fight a hundred battles without danger. Now we cannot predict the situation of our opponents, but our opponents are well prepared. If we continue, the situation we face will definitely be very passive.

Our group is also building a tire production line, and the group's focus will also be on the tire business. So in order to avoid distracting energy, I think we can suspend the development of the rear axle assembly first!"

These few words from Huang Baifa are equivalent to finalizing the decision, confirming that Gufeng Group will suspend the research and development of the rear axle assembly.

…

What Li Weidong used was completely a conspiracy. Even though Huang Baifa had seen through Li Weidong's intention, he had no way to deal with it.

On the surface, it seems that Li Weidong is engaging in a price war, lowering the rear axle assembly to the cost price, so that no one can make money, which is equivalent to killing one thousand enemies and losing eight hundred to himself.

But in fact, Fukang Agricultural Machinery uses this method to nip future competitors in the cradle.

Once its competitors fall, Fukang Agricultural Machinery can continue to monopolize the rear axle assembly market.

This trick was indeed very effective. Seeing that there was no profit to be made, Huang Baifa terminated the research and development of the rear axle assembly.

As long as you can't build it, I will sell it at a high price and make a lot of money; but once you build it, I will immediately lower the price to squeeze you out and make your research and development go to waste. This is a common routine used by companies in developed countries.

When a certain technological product is monopolized by companies in developed countries, it will definitely sell at a high price.

High prices mean high profits, and this high profit will also attract other companies to enter this field.

It is precisely because the profits are high enough that companies that want to enter this field are willing to spend a lot of money on research and development.

Of course, the original monopoly will not sit back and watch the emergence of competitors, so when competitors achieve certain results in research and development, the monopoly will decisively reduce prices.

As a result, product profits will be greatly reduced. Those companies that spend money on R&D will find that their profits are no longer as high as before. It is more cost-effective to do their own R&D than to just buy them, so they will give up R&D and switch to purchasing.

Once you give up research and development, you will cut off the path to higher-end products, and you will have to continue spending money to buy them in the future.

Developed countries have used this trick to kill many R&D-oriented enterprises in their infancy.

For example, some South American countries and some Central and Eastern European countries are not considered poor countries to begin with, and have relatively high levels of compulsory education. They originally had certain research and development capabilities.

But in the end, the scientific research enterprises in these countries were all defeated by this trick in the process of growth.

Brazil, Argentina and Chile in South America, Serbia, Poland, Belarus and other countries in Europe all have good industrial systems. If you look closely, their industrial categories are quite comprehensive, and they basically have all the industries that should be included.

The education systems in these countries are also very complete, from compulsory education to higher education, and they are capable of providing corresponding talents for the country.

However, the manufacturing industry in these countries has always been second-rate in the world, and it is difficult to find a Fortune 500 manufacturing company in these countries.

Brazil, the largest country in South America, meets the conditions of a manufacturing power in terms of land, talent, resources, and industrial categories. However, when people mention Brazil, the first thing that comes to mind is iron ore and agricultural products.

Among the Fortune 500 companies in Brazil, there are three banks, one sells oil, one sells mining, and only one sells beef. It produces some canned sausages and hams, and can barely be linked to the manufacturing industry.

In fact, Brazil was once very strong in the fields of computers, electronics, and optical products. In 1995, medium- and high-tech manufacturing accounted for more than 50% of Brazil's manufacturing industry.

However, more than two decades later, Brazil has been reduced to burning the Amazon rainforest to grow soybeans.

The reason for this is because high-tech companies in developed countries do not want to see the emergence of competitors. For countries like Brazil, it is best to stay at the stage of mining and planting soybeans and not to get involved in the high-tech industry.

The reason why Chinese companies can move from low-end manufacturing to high-end manufacturing is closely related to state support.

In every five-year plan, the country will announce a large number of scientific and technological research projects, from the 863 Plan to Made in China 2025. Many scientific research projects seem to be completed by enterprises, but they are all led by the state.

For example, when talking about domestic lithography machines, people generally think of Shang Microelectronics, but most people don't know that behind Shang Microelectronics there are also the National Integrated Circuit Industry Base, the National Semiconductor Industry Base and the National 863 Information Achievement Industry Base.

The main purpose of state-led scientific research is not to make money, but to meet the needs of the country and the people, so it will not be abandoned halfway due to interference from external factors.

With the state leading scientific and technological research, companies can receive a large amount of resources and policy support, making it easier to achieve technological overtaking.

In contrast, foreign scientific research is mainly driven by economic interests.

Scientific research driven by economic interests does not consider strategic development, but only cares about whether it can make money. If it cannot make money, it will definitely not invest.

Many countries with good manufacturing foundations are always stuck in the middle stage of manufacturing and are unable to upgrade their industries. This is because they lack long-term strategic planning, resources and policy support, and they all rely on their own companies to do it.

, even if the order is changed morning and night, it will not move towards the high end.

State-led scientific research has inherent advantages in the system. This model may not be the most efficient, but it must be the most effective!

…

Du Jiahai walked in with a smile on his face and said, "Chairman, the order from Gufeng Group is here! What they are purchasing this time is the second-generation rear axle assembly."

"It seems that Gufeng Group has admitted defeat." Li Weidong breathed a sigh of relief.

After eliminating a competitor, Li Weidong felt better.

In fact, Li Weidong is also very worried. If he encounters a strong opponent, it will be quite troublesome to fight to the end.

However, this incident also gave Li Weidong a sense of crisis. As the market becomes more free and open, competition will become increasingly fierce.

If Fukang Agricultural Machinery wants to survive in the fierce market competition, it cannot rest on its laurels and must forge ahead.

However, Fukang's agricultural machinery background is too thin after all. In the field of traditional agricultural machinery, it has no advantages at all. It can only rely on emerging products such as agricultural vehicles to get a share of the market.

"Nowadays, the entire Fukang Agricultural Machinery business is centered around agricultural vehicles. The products are single and the market they face is also single. This is not suitable for the development and growth of the enterprise. To develop new products and open up new markets, we must

It’s on the agenda!”

Thinking of this, Li Weidong showed a firm expression.

Li Weidong has always wanted to make a product, but due to many considerations, he has never decided whether to make it or not.

Now that the Gufeng Group incident has occurred, it has affected the survival of Fukang Agricultural Machinery, and it has made Li Weidong determined.

Li Weidong took out the key, opened a locked filing cabinet, took out a folder, and handed it to Du Jiahai.

"Lao Du, I have a task for you. Modify our agricultural tricycle according to the design above and make a finished product!" Li Weidong said.

Du Jiahai took the folder and was slightly startled when he saw the drawings inside.

There were several drawings given by Li Weidong, but they all remained the same. They were all about modifying the cargo compartment of an agricultural tricycle from the original cargo box into a tin shed, with rows of seats added inside.

So Du Jiahai asked curiously: "Chairman, is this thing meant to attract people?"

"That's right, it's specially used to attract people." Li Weidong nodded, and then said, "It's time to start the era of Santengzi!"

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