Chapter 116: The Strike

After Longteng Electric received a deposit from Samsung, Philips and other companies, it began to open new factories in China! Like most companies with rapid development, Longteng Electric's expansion speed surprised everyone! In 1987, Longteng Electric opened a new factory every month, but by 1988, it was shortened to one week. By 1989, it had reached the exaggeration of opening a new factory on average!

Now Longteng Electric has more than 100,000 employees in Shenzhen alone, and countless downstream companies have developed rapidly because they have received orders from Longteng Electric.

Many companies in the Longteng Group, as well as other small companies that rely on the Longteng Group to survive, require a lot of labor like a dry sponge absorbs water.

Labor shortages occur in Shenzhen and even surrounding counties, because the development of the Longteng Group is in line with the direction guided by the Party Central Committee. Most of the economic development goals and plans of the Shenzhen City and Guangdong Provincial Government are in line with the expansion of the Longteng Group.

When Longteng VCD and Wanyan VCD were the first to be launched on the market, it soon received a large number of orders in China. With the support of Longteng Film Company and a large number of entertainment resources, many genuine and cheap VCD movie discs are sold in China.

Compared with the videos that cost hundreds of yuan per disk, the vcd disc is very cheap, and the authentic vcd movie disc is only 20 yuan.

The main things to buy vcd videos are video rooms and video halls. Ordinary people will not spend more than 1,000 yuan to buy vcd videos, and then spend 20 yuan per disk to buy CDs and watch them home. At this time, most mainland citizens had a monthly salary of only about 200 yuan, and their consumption desire was not very strong.

However, the saying of China's great land and wealth makes sense. When the average GDP of domestic people is only 2,000 yuan, more than 1 million VCDs were sold. Among them, 800,000 were Longteng VCDs, and the remaining 200,000 were Wanyan VCDs.

The sales of so many units cannot be digested by video rooms, which also means that a large number of people are already rich.

In Hong Kong, since Hong Kong itself is a relatively high-priced area in the world, the average GDP of local citizens exceeds HK$50,000. Except for people who have high requirements for picture quality or karaoke, they continue to use ld laser video discs, and the cheap and fashionable vcd CDs quickly defeated the mainstream VHS video tapes.

VCD is easy to carry and cheaper than LD, and its image and sound quality is slightly higher than that of standard VHS video tapes, which is enough for ordinary users.

Longteng vcd's revenue is exported overseas. Due to the influence of Longteng movies, Longteng vcd can easily become a product that replaces video recorders.

In the United States, Microsoft invests in factories to produce VCD optical drives. Because their compatibility is much better than CD-ROM optical drives, and it is compatible with most PC hardware.

Now the vcd disc uses mpeg-1 compression technology and can only store about 600mb of information. Although the vcd disc is not as suitable as the dvd disc, it is cheaper than the floppy disc and has better compatibility than the cd disc. Moreover, Microsoft's various software has launched the vcd disc version, and part of the new game of Longteng Game Company is sold in the form of a vcd disc, which is quickly accepted by the market.

After the VCD product appeared, the management confidentiality measures were done well, but other companies shamelessly developed the VCD product with patents registered by Longteng.

Now the laws in China are not very sound. The most important method of patented technology is to keep it confidential by yourself. Technology that is too easy to be cracked by others can easily make researchers lose all their money.

Longteng Electric Appliances and other companies jointly contributed funds to the government, demanding strengthening the crackdown on piracy industries and patent infringement.

Longteng vcd pays great attention to keeping technology confidential. Unlike Wanyan vcd in his previous life, it has no unfathomable taste at all. Some manufacturers can easily buy a few vcds and find some technicians to disassemble it and crack the technology. However, it does not mean that Longteng's vcd technology is difficult to crack, so the crackdown on patent infringement must continue. However, for companies that directly violate the law, have not obtained Longteng Electric's patent authorization, and use Longteng Electric's registered patents to pirate VCD products, they still cannot be prevented.

If the new technology invested by most companies and patents are easily shamelessly plagiarized by others and the interests of investors are constantly damaged, then technological innovation will naturally be deeply hit.

Soon, Zhang Bixuan realized that there were too many experts in China. Although Longteng Electric had made the technology very complicated, it was still cracked.

Longteng Electric Appliances made Lei Feng a living, "taking the most ruthless thing in the world" sued thousands of factories that plagiarized patents and made pirated vcd CDs, and deeply taught the people of the whole country a course to popularize the common sense of "patent law"!

"It turns out that lawsuits can still be fought like this!" Many companies with new patents suddenly realized and followed Longteng Electrical Appliances to sue hostile companies that infringe on their patents.

Soon, the court ruled that all companies that illegally used other people's patents were severely punished, and the amount of fines exceeded several times the illegal income.

...

A stock in the stock market has risen sharply in the short term. What is most needed is the theme of speculation, or to draw big pie for investors to see, making people think that a project of the company is promising in the future.

Longteng Electric's after-tax profit of more than HK$1 billion in the previous year, but its total market value is only 5 billion. The reason is that the household appliances produced by Longteng Electric are very ordinary and there is no concept of hype.

When VCD, MP3 and other products emerged, many institutions and dealers' eyes lit up. This is a relatively new thing, and as soon as VCD was launched, sales were very hot. Not to mention, Longteng Electric established a standard for the VCD industry, and all companies that want to participate in this industry will be exploited by Longteng Electric. Third-rate companies sell goods; second-rate companies sell technology; first-rate companies sell standards.

Longteng Electric Appliances is a first-class company that sells standards!

Patent licensing fees alone can earn billions of US dollars in revenue. Who dares to say that Longteng Electric is not a first-class company?

However, first-class companies must have stock prices that match it! Originally, Longteng Electric had a total share capital of 300 million shares, and 100 million shares were circulated in the market, with an average of less than 20 yuan per share.

Many institutional dealers believe that the stock price is seriously incompatible with the status of Longteng Electric Appliances Company. A large amount of funds have crazily bought Longteng Electric Appliances stocks, from 20 yuan, 30 yuan, and 50 yuan, to a sky-high price of 400 yuan per share!

Zhang Bixuan was a little stunned, but he highly praised the US dollar that Lei Yaobang, president of Longteng Electric Appliances, for extorting more than 3 billion yuan. If it weren't for this blackmail, how could Longteng Electric Appliances' stock rise so vigorously!

Nowadays, Lei Yaobang often travels between Hong Kong and Shenzhen to report to Zhang Bixuan. After all, he did not meet on the phone to report to his country.

Lei Yaobang said: "Boss, I have good news and bad news!"

Zhang Bixuan smiled and said, "Tell me the good and bad ones together!"

"The good news is that in addition to core companies such as Samsung, Philips, Wanyan, and Microsoft, tens of thousands of companies around the world have applied to join!" Lei Yaobang said with a smile.

Longteng Electric stipulates that only the VCD forum is approved to organize members to produce VCD products. The core members will pay a fee at one time to obtain patent authorization. In the future, the core members can continue to research new VCD products based on the authorized patent. Instead of the core members, they will pay a membership fee of US$100,000 per year. For each VCD production, the organization will have to pay a patent fee of US$100,000 to the organization! This patent fee is naturally divided by the core members.

"Continue talking!" Zhang Bixuan urged.

Lei Yaobang put away his thoughts of keeping a secret and immediately answered honestly: "The bad news is that many large Japanese companies jointly boycott our VCD products. They do not sell vcd in the mall, and they cannot see vcd CDs in the market. Many small factories are not planning to join our VCD forum organization, so vcd failed to enter Japan!"

Because Longteng Electric refused to authorize the VCD patent to Japanese companies, the domestic entertainment and film industry jointly boycotted any VCD products, and some consortiums with strong influence announced that Lian Longteng Electric's planned DVD products will continue to boycott!

Zhang Bixuan thought that Japanese people could install B for a few more months. After a few months, over the past tens of thousands of bankrupt companies in Japan each year, and a large number of them were acquired by foreign companies, layoffs, laid off workers, and other extreme phenomena would appear one after another. In the 1990s, the number of poor people in Japan increased several times, and these people even had difficulty in basic living. At that time, the economic benefits were not good, so naturally there were factories asking Longteng to give them some projects.

Since the 1980s, Japan's economy has performed two extremes. In 1986, Japan's economic trend was stable, driven by industries such as automobiles, electronics, integrated circuits, and gradually increased its strength. At the end of the year, the Economic Planning Department announced another prosperity, that is, the 4-year-old "Heisei Prosperity". By the end of the 1980s, Japan's automobiles had dominated the world, and Japan's industries were blooming everywhere in Western Europe and Latin America, and almost all countries were forced to fall under Japan's strong economic strength.
Chapter completed!