Super Tycoon

Liu Yuan looked at Zhang Yang helplessly: "You say you are regulating the market? Excluding other competitors is regulating the market?"

"Liu Buzhang, your understanding is a bit off. I just want to ask a few questions, and I hope Liu Buzhang can give you an answer. First, are we actively applying to join the WTO, so will the import and export trade surge in the future?"

"Secondly, are electronic manufacturers from island countries, South Korea, and even Europe and the United States all aiming at the Chinese market and starting to deploy their industries in the Chinese market?"

"Third, Liu Buzhang believes that the small workshop model or the big factory model, which represents the future?"

"Fourth, are we talking about a market economy now? Then what is the essence of a market economy? Administrative intervention?"

Liu Yuan was silent, and he also fully understood Zhang Yang's meaning. To put it bluntly, if the Zhiduoxing Group does not lower prices, then after other companies enter the mainland market, they will also encircle and suppress those small electronics companies from other aspects, and they will not be able to bear it.

Moreover, those small enterprises are small in scale and their competitiveness is inherently weak. Rather than being defeated by foreign manufacturers, it is better to stand the test now. If you can bear it, you can continue to make progress and have the opportunity to grow into a big company. If you can't bear it, you can transform as soon as possible, and you will save yourself from losing even worse in the future.

The market economy is inseparable from market competition, and it is also an economic situation of internationalization. At this time, it was proved to be the most advanced, and developed countries basically adopted this economic situation.

Of course, there are some differences in different countries. For example, the United States is more free, the economy is in the hands of some big conglomerates, and the government rarely interferes.

Some developed countries in northern Europe are social market economies, part of the economy is handed over to more mature consortiums, and some emerging economies are assisted and guided by governments.

Island countries, France, etc. are another type of market economy guided by administrative management. The government formulates a basic national policy and then uses the policy to guide the market economy.

There are also many big consortiums in the island country, but those big consortiums are more closely related to the government.

China's market economy, called the socialist market economy, is different from the three current mainstream market economies, but it does not mean that China's market economy must be completely dominated by the government.

In fact, Huaxia has never given much support to the electronics industry. Zhiduoxing Group can develop more because of its own efforts and special times, and there is no replicability.

If other small electronics companies want to learn from the model of Zhiduoxing, they will inevitably fail.

Mainly because of rising prices,

Technological talents have higher requirements for salary. The market is gradually opening up, and some international electronics giants are flocking into the Chinese market. It is difficult to have a low-cost, high-profit, but explosive electronic product.

For example, many people can see that BP machines are going downhill, and mobile phones are bound to flourish in the future, but the entry barriers for mobile phones are too high.

It seems that a person who can make a walkie-talkie can make a mobile phone, but in fact there are many differences in technology. Duan Yongping mentioned to Zhang Yang before that the computer learning machine market is gradually shrinking, and he wants to try making a mobile phone.

Zhang Yang also agreed, and signed Duan Yongping to form a research and development team, planning to launch a mature product within two years.

Many of those small electronics factories are really no different from small workshops in Zhang Yang's eyes. The number of workers is small, the equipment is aging, and some electronic components or electronic products are produced that are on the verge of being eliminated.

There are still companies producing 8-bit game consoles, and Zhang Yang doesn't even know what they think.

Once some electronic components or electronic products are really eliminated by the market, those small workshops will not even have the opportunity to transform. The result is bankruptcy. Except for the land, everything else may be of no value in the eyes of investors.

Some old workers with mediocre skills are not wanted by investors. Old factories, no. Old equipment, don't. In other words, those small factories may not even be able to sell them!

Why many companies advocate large-scale production, because this can reduce production costs, improve efficiency, improve the rate of good quality, and enhance the competitiveness of enterprises.

Enterprises want to make more money, there are two ways to increase revenue and reduce expenditure. Open source is to sell more products, and throttling is to reduce costs.

This cost includes production cost and sales cost. It is difficult to reduce the cost of sales. If you do not advertise, the product will not be famous, and dealers and retailers are unwilling to purchase.

The profit you give to dealers and retailers is low, and they are unwilling to do it. Selling the same product, other brands make more money, why should I sell yours?

There is also the transportation cost in sales, which is why many factories like to build in the southeast coastal cities, because of the convenient logistics, how many factories have you seen built in the western region? Even if there is, it is not a big factory, and it must be supported by government policies.

Reducing production costs is the main way for many companies to save money. Including improving production efficiency, reducing material costs, reducing labor costs and so on.

Many large companies will lay off employees when their revenue decreases or they are in a loss. This is the most direct way to reduce labor costs.

It's just that in the Mainland, there have been no large-scale layoffs by large companies in recent years. It is also because of this that many state-owned enterprises had the instinct to tide over the difficulties before, but they were eventually dragged down.

Liu Yuan took out the cigarette case, pulled out one himself, and pushed it towards Zhang Yang. Zhang Yang waved his hand and drank tea from a teacup.

"Mr. Zhang, what you said is very reasonable, but what you are doing now will not only hit some small companies, but also some medium-sized companies. They have the opportunity to grow into large companies."

"Foreign electronics companies are indeed entering the country in a big way, but they don't know enough about the Chinese market, and they may not be able to gain the upper hand when competing with local companies."

"Besides, the prices of many foreign companies' products are very high, and domestic electronics companies have some room for survival. Now this space has been compressed by Zhiduoxing. If you were me, what would you do?"

Zhang Yang shook his head: "I'm not Liu Buzhang, and I don't know much about the whole industry. But please pay attention to Liu Buzhang. At present, our Zhiduoxing products are in two directions, one is video game consoles, and other small factories in China It was going to be yellow, and whether I cut the price has nothing to do with their yellow stalls, we are targeting other companies in the island country."

"Our second category of products is educational electronic products, including learning machines, electronic dictionaries, repeaters, etc. These are the first products that we, Zhiduoxing, started to produce and sell in China. It can also be said that this market is discovered and opened by us."

"There are so many companies that they can imitate. Why do they have to imitate Zhiduoxing? If they imitate, can they stop making rough products and show some of their own characteristics?"

"Together, the annual sales and profits and taxes of those small businesses that have gone bankrupt are not half that of our Zhiduoxing Group. Just because our Zhiduoxing Group is developing well, we must be restricted? What's the reason?"