541 dragged people into the water

"Let's talk about the threat first. (") I just said that due to the impact of the financial crisis, the yen and the Korean won have begun to depreciate, which will lead to a decline in the prices of Japanese and Korean machine tools. In addition, during the crisis, companies will lower their profit expectations, not seeking to make money, but seeking to ensure capital. In order to increase sales, they may also actively reduce prices and compete with us." Lin Zhenhua analyzed.

"So, what about the opportunity?" Gu Jiahua asked.

Lin Zhenhua said: "Opportunity means that these companies are now facing financial difficulties and are eager to recover funds from the market, and it is difficult to bear high losses. In this way, if they want to fight a price war with us, they will inevitably look forward to it and dare not get entangled with us to the end. We should seize the other party's mentality and act like they are willing to fight with each other and lose both ways, and the other party will naturally become timid. This is a good opportunity for us to recover lost ground."

Lin Zhenhua said this very simply, but the people present were thinking about the market trends every day, and the drums were not hit hard. Lin Zhenhua broke them lightly, and everyone understood.

This is the current situation. Regardless of whether Chinese machine tool companies plan to lower prices or sell, machine tool companies in Japan, South Korea and Taiwan will definitely have to lower prices to grab the market. Instead of being passively challenged, it is better to take the initiative, and once competition starts, they will have to fight until the other party has no power to fight back.

"Haha, Xiaolin is always better at seeing problems than others. I admire you, admire you." Gu Jiahua said with a light patting her hands.

Lin Zhenhua waved his hand and said, "When you laugh, you laugh, I'm just throwing a brick and sensation. These views were raised by our group's marketing department. By the way, Director Huanggang of the State Planning Commission also has this view. On this issue, I went to him specifically to discuss it. He also believes that this is a good opportunity for our Chinese machine tool industry. The temple."

"Chief Huang is Director He's proud disciple. He is young and promising, and has extraordinary knowledge." Li Mozi said, "Have he ever mentioned what the Planning Commission thinks about the current economic situation?"

After graduating from a doctorate, Huanggang was left to work in the State Planning Commission and was soon promoted to the director responsible for policy research. It is said that he was the author behind many macroeconomic policies issued by the Planning Commission, so Li Mozi was particularly concerned about Huanggang’s views on this matter, because these views may eventually be reflected in the official documents of the Planning Commission.

Lin Zhenhua said: "The Planning Commission has many issues to consider. In addition to purely economic factors, they also need to take care of the country's diplomatic strategy. From a macro perspective, we are still implementing the principle of keeping low profile and will not be too ostentatious at this time. However, Huanggang also said that some industries will not oppose some measures with industry characteristics, and may even provide some support."

Everyone knows the principle of keeping one's strength and keeping one's low-key principle. Due to the collapse of the Soviet Union, China became the last major power in the Eastern camp. If it acts frankly, it will inevitably lead to full containment from the Western camp led by the United States. In this case, the central government proposed the policy of keeping one's strength and keeping one's low-key policy and never step forward, trying to avoid causing trouble and strive for time for stable development to the greatest extent. The so-called image of "human, animal, harmless little white rabbit" was formed during this period.

The words of Huanggang reposted by Lin Zhenhua revealed two information. One is that during the Asian financial crisis, the country will not adopt macro-aggressive policies, but will win the trust of countries in Southeast Asia and East Asia as a responsible major country. The other is that the country does not oppose certain industries acting according to their own situation. Of course, the degree of action still needs to be carefully considered.

As an official of the ministry, Li Mozi naturally understood this kind of official rhetoric the fastest. He nodded and said, "Since the Planning Commission has such a spirit and Mr. Lin just gave us such an incisive analysis, then the strategy of our machine tool industry is very clear. "I think we should seize the opportunity, take bold measures, not be afraid of difficulties and fight a turnaround."

"I think it's okay!" Bao Guangming echoed first, and his emotions were also mobilized. At the beginning, when Lin Zhenhua proposed a 30% price cut, Bao Guangming felt a little painful, but after thinking about it carefully, he felt that this plan was not that scary. If Japanese, Korean and other companies could really be squeezed out from the market, the lost profits may not be able to be made back.

Price war is often used in business. In order to defeat competitors, you can reduce the price of your product to a loss. As long as you can hold on, you can raise the price again after the opponent collapses. At that time, your product is in a monopoly position. Don’t you have the final say on what price? Of course, there are skills to raise the price after the price is reduced. You cannot directly raise the price again, as this can easily lead to customer dissatisfaction. You can stop the original product production, launch an improved version of the product, and take the opportunity to raise the price. This trick is familiar to everyone.

"Mr. Lin, tell me, what should we do? We will do it according to your instructions." Meng Zhenya and others also figured it out and said to Lin Zhenhua together.

Lin Zhenhua said: "I dare not take it as a command. I only have immature ideas. Let's talk about it together. We have analyzed it before. Now it is a very good opportunity. If we seize this opportunity, it may give Japan and South Korea a fatal blow to the machine tool companies in Japan and South Korea, making them unable to recover their vitality for at least a few years.

My idea is this. After all the bosses here, they worked hard after they went back, carefully calculate the cost of the company's products and estimate a price reduction that they can afford. Then, according to the calculated results, we gradually lower the product prices in stages, squeeze the market of Japanese and Korean companies, and force them to fight a price war with us."

"Steply lowering the price? What does this mean?" Bao Guangming asked in confusion.

Lin Zhenhua said: "Boss Factory Manager, think about it, if we reduce the price by 30% in one step, what will Japanese and Korean companies do?"

Bao Guangming said: "They must have admitted defeat directly. I just calculated that they can't afford the 30% drop no matter what."

"That's right." Lin Zhenhua said, "If we reduce the price by 30% at once, the other party will definitely not respond, but will directly shrink back and let us play a one-man show, so we will suffer a lot. We will not only cut the price to grab the market, but also drag our opponents into the water and let them drown half dead."

"I understand." Meng Zhenya interrupted, "Mr. Lin means, is it that we should keep our trump card and reduce it by 5% or 10% first, so that the other party feels that it is possible to compete with us. They are definitely unwilling to give up the market just like this, so they will also lower the price with us. After they are reduced to the right level, we will continue to reduce it by 5% to lure them to follow up. After this, they are dragged into the water by us."

"No, this is too dark, right?" Bao Guangming also reacted.

According to Lin Zhenhua's idea, Japanese and Korean machine tool companies must participate in the war. Chinese machine tool companies reduce prices by about 10%. If Japanese and Korean companies do not lower prices, the market will be snatched away by Chinese companies, and at such a price, Chinese companies can still maintain profitability. In order to maintain the market, Japanese and Korean companies can only lower prices, and this is the beginning of trapping.

After Japanese and Korean companies lower prices, Chinese companies will continue to reduce prices by 10%, and then the other party will be in a dilemma. If they continue to follow up, they may face losses. But if they do not follow up, the results of the previous price reduction will be ruined again. In this dilemma, if Lin Zhenhua plays some tricks to make the opponent feel that there is an opportunity to take advantage of it and continue to move down with a lucky mentality, and eventually they will be dragged into the water.

Compared with one-step price cut, Lin Zhenhua's idea is indeed much darker. If Chinese companies reduce prices alone and Japanese and Korean companies do not follow up, then although Chinese companies can gain a larger market share, they will inevitably give others the impression of low-end products. It is different to pull Japanese and Korean companies to reduce prices together. Everyone is reducing prices, which means that everyone's products are almost the same. In the end, Japanese and Korean companies cannot withstand the greater price cut and withdraw in the middle, which is considered a foil for Chinese companies in vain.

In addition, Chinese companies and Japanese and Korean companies do not completely overlap in product lines, especially in high-end machine tools. Japanese and Korean companies can retain some share. If Japanese and Korean companies reduce prices on low-end products, high-end products must also be expressed, otherwise it will cause dissatisfaction from customers. Therefore, Lin Zhenhua's strategy is to force Japanese and Korean companies to lower product prices across the board. When the price war is settled, Japanese and Korean companies will find that they not only lost the low-end market, but also significantly reduced profits in the remaining high-end market. This achieves what Lin Zhenhua said about not only grabbing the market, but also allowing the other party to bear losses.

Gu Jiahua is a government official and has been in business for a short time. He can't understand these tricks at once. However, there is no shortage of people who are attentive. After saying this to him, Gu Jiahua then figured out Lin Zhenhua's ideas. He pointed at Lin Zhenhua with his finger and said with a smile: "Xiao Lin, I really can't tell that you are such a cruel person."

"This... should be called resourceful, right?" Lin Zhenhua replied shamelessly. In his heart, he was quite content with his plan.

"I remember, I hope that our two companies will not become competitors in the future." Gu Jiahua said, "I understand that the most terrifying thing in the world is to become opponents with you."

"Mr. Gu, you also missed a sentence. The happiest thing in the world is to become friends with Mr. Lin." Bao Guangming laughed and flattered Lin Zhenhua heavily.


Chapter completed!