Rewrite the Technological Landscape

Obviously, it is completely incomprehensible for Dafeng Group to launch a price war, especially after Dafeng Group lowered its price, BOE and other companies also began to lower their prices. Regarding the price advantage, one thing that everyone is sure of is that as long as there is a price war, mainland China companies will definitely suffer a great crime.

Logically speaking, mainland China companies can drag on for a day, and it is best not to fight a price war forever.

So Dafeng Group took the initiative to fight a price war. Is it courting death?

Regarding this matter, we have to go back a few months. One month after the establishment of the joint venture company Hualong Optoelectronics, the company's overall system and personnel are almost in place. Meng Qian held the chairman of each company to hold a board of directors and talked a lot about Hualong. Optoelectronics, and also talked a lot about China's LCD screen industry.

Among them, Meng Qian mentioned one of the most practical problems, "Everyone knows in their hearts that once China's 6th-generation and 7th-generation lines start, price wars are inevitable. Smart factories can help us solve certain production capacity problems, but now we still have to One question is when will the price war start.

From the perspective of Samsung and LG, there are two choices. One is to wait until our 6th generation line is ready to receive orders, and directly use the price to prevent us from receiving orders, or start a price war early on in the small and medium-sized end. , directly driving our Huaxia enterprises to death, what do you think they will do? "

The general meeting of shareholders was held in May. At that time, no one cared about the subprime mortgage crisis. It was more based on the current situation. Most people thought that Samsung and LG were unlikely to wait for Huaxia to build the 6th generation line. To make a move, this is tantamount to letting Huaxia develop the 6th generation line first, then what if the Huaxia government intervenes to demand that domestic home appliance companies have high prices and support domestic LCD screens?

But it’s too soon, and everyone thinks there is no such rush. The factory will take a year to build, and more importantly, the 2008 Olympic effect is here. Samsung and LG should wait until the beginning of 2008 to determine whether the Olympic Games can be activated. What a big market, anyway, at that time China's 6th generation line had not yet been built.

But everyone is just guessing like this. No one knows when people will start to cut prices, and no one knows what the future demand will be. Maybe the demand will skyrocket in the future. What if the market drives up prices? So guesses are guesses, no one will consider taking the initiative to take action, after all, the future is unpredictable.

However, Meng Qian knew what would happen in the future. Regardless of whether Samsung and LG made a move in 2008, the price of LCD screens in 2008 would have plummeted due to demand problems. If you want to consider suppressing the mainland and also consider destocking, Samsung and LG will definitely crush the mainland to death. At that time, the decline in LCD screens may not be affordable for mainland companies.

Therefore, the loss of domestic LCD screen manufacturers next year is a certainty, and no one can change it, but the use of prophets can still buffer the wave. Therefore, Meng Qian proposed this scary idea, taking advantage of the current demand. The predictions are hot, so hurry up to cut prices and pull a batch of orders. Once the demand-driven price cuts start at the end of the year, Samsung and LG will definitely not be able to leave a way for mainland companies to survive, because they are price cuts caused by demand, and they have to get rid of inventory, otherwise they will Overstocked.

And because the price reduction does not mean that it is decided today that it will start to drop the next day. The mainland will lower the price first. Korea and Nihong will definitely be confused for a while, just take advantage of how much they can sell and how many orders they can win. Take as many orders as you want.

Logically speaking, there is nothing wrong with this approach. I know there is going to be a price war. I will jump first and use the price to make a fortune first. a loss.

The premise is that you have to know when the price will start to fall, but other entrepreneurs do not know when the price will fall. If the price started to fall at the beginning of 2008, it would be profitable. If the price war was launched in the middle of 2008, it would be It is suicide.

Sure enough, when Meng Qian proposed this plan, almost everyone opposed it.

Faced with opposition from most people, Meng Qian had no way to explain the future, so he chose a tough attitude, because Dafeng Group has a fifth-generation line, which can make panels from 8 inches to 32 inches, which happens to involve The three popular sizes for price reduction in the future are 17 inches, 22 inches and 32 inches, so Meng Qian said very strongly, I don’t care if you do it or not. Anyway, Dafeng Group plans to do this. I’m here to talk to you today. After all Now that everyone is an ally, it is impossible for me to do this behind everyone's back.

If you don't want to do it, I don't force it, but you don't want to stop me either.

Many people feel very uncomfortable with Meng Qian's attitude, but Meng Qian is determined to do this, everyone can only follow, because as long as Dafeng Group fires the first shot, the price war will definitely start, if you don't follow, Then you won’t be able to get anything, and you’re really waiting to die. This is the first. The second is that after the establishment of Hualong Optoelectronics, Dafeng Group has actually become the leader in the domestic LCD screen industry. It depends on Meng Qian, and even the 8th generation line depends on Meng Qian. The decision-making power of Hualong Optoelectronics in the future is in Meng Qian's hands. Everyone dare not speak out at this moment.

After using his power to suppress, Meng Qian did not forget to give everyone a candy, "I admit that there is a gambling element in doing this, so I bought an insurance for everyone."

Meng Qian put a document in front of everyone, which is a promise from the state.

Before negotiating with them, Meng Qian first went to talk to the government leaders. Faced with the leaders, Meng Qian said impassionedly, "We private companies are now under great pressure to build 6th and 7th generation lines. When Korea suppresses us, the country can’t sit idly by, China is the world’s largest LCD screen market, and the autonomy of LCD screens is of great significance, the country should give some support.”

The leader said, "Didn't we give you subsidies when you built the factory? There are also low-interest loans and tax breaks. What else do you want?"

"Isn't that the price war is already something that has to be faced on the bright side, and the price war may last for a year or two, at least before the completion of the 6th generation line, will the country give Support and support, even a little subsidy for losses?"

"Mr. Meng, you don't know how big the country's investment gap in the technology industry is. It's not so easy to subsidize so much in one field."

"No, we have to take a long-term view. Once Huaxia raises the level of self-reliance of LCD screens, I won't talk about exports. It's just a domestic market. How much tax do you calculate every year? Will you be able to subsidize it later? What about other fields?"

"I can't tell you capitalists, come to me again when the price war really starts."

"That won't work. You want the horses to run and don't feed the horses. The soldiers are going to the battlefield and you don't even give a guarantee. What if everyone starves to death on the battlefield?" After getting acquainted, sometimes Meng Qian would play a bit of a rogue.

As the saying goes, children who cry will have candy to eat, and the leader has no choice but to be annoyed by Meng Qian, so he finally had to agree, "Okay, okay, let's have a meeting later to think about specific policies."

"Okay, the leader is wise, let's have dinner together tonight."

"No, I beg you not to come to me in the future if you have nothing to do."

Meng Qian persuaded the country to increase support, and once again let other entrepreneurs see Meng Qian's influence. Everyone's heart was complicated, but this matter was settled like this.

This is the necessity of winning the position of the leader of the domestic LCD screen alliance, otherwise, with Meng Qian's dictatorial appearance, it may be easy to cause internal strife.

At least for the long-term development now, everyone is willing to give Meng Qian more face, and will not directly turn their faces and break the alliance for one or two things.

The time returns to October.

After finishing talking with Yin Zhonglong, Mikio Katayama naturally dialed Meng Qian immediately, "Mr. Meng, what are you doing?"

"Huh? What?"

"Why did you suddenly drop the price?"

"Price reduction? Are you talking about the LCD screen?"

"if not?"

"Many of our products have been reducing prices recently. The impact of the subprime mortgage crisis has become more and more serious. Recently, many of our orders have been cancelled. Now we are worried about inventory issues, so we have started to cut prices. Why, has the subprime mortgage crisis not affected you? "

Katayama Mitsuo suddenly froze, Meng Qian's words, you say he is justified, listen to the inexplicable nonsense, you say he is talking nonsense, it seems that this is indeed the case

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