Extraordinary Genius
Chapter 865 - The wolf is here
Schnepp arrived at work the next morning and is having his usual morningcoffee as he checks his emails. Emails are his main communication tools withMotorola"s headquarters. He seldom calls the headquarters on the phone unlessit is something urgent.
Motorola"s headquarter is pleased withtheir last month"s China"s mobile phone sales and wanted Schnepp to keep an eye on it. Motorola pagershave a disadvantage in China and the importation taxes for electronic devices arevery high. Although Motorola uses efficient a.s.sembly lines to lower theirproduction costs, when the pagers are shipped to China, the cost becomes higherthan Aiwa Pagers.
Also,many pager manufacturers appeared in China last year and their pagers were muchcheaper than Motorola. Although Motorola pagers were still doing well, that"safter they had a price cut. Also, lesser people are buying numeric pagers andMotorola would be overtaken by Aiwa Pagers this year.
Theprofit from pagers is not high, and Motorola rather uses the marketing fees forpagers on their mobile phones. This will increase their profits. But this onlyapplies to China. In Europe and other developed countries, mobile phones hadalready started to replace pagers.
Schnepphad prepared in advance and got consent from the headquarter to build a factoryin China. This is the reason why their mobile phones can get high profits. Ifthe Chinese factory, which manufactures Motorola pagers for them, renewed theircontract with Motorola, Motorola pagers will also be profitable.
Althoughthe headquarters did not pin the blame on Schnepp, Schnepp felt this was allAiwa Electronic"s fault. If Aiwa Electronic had not entered the pager market,they could continue to profit from their pagers for at least 5 more years!
You allmanufacture mobile phones now? This time I will teach you all a lesson. I willlet you know how powerful Motorola is!
Untilnow, Schnepp is still confident that Motorola phones are the best in the world,and Aiwa phones and Wind and Rain phones are at least 3 years behind them!
Schneppwas confident that he will be promoted to Asia-Pacific Regional President ifeverything goes smoothly in China. He might even get the opportunity to enterthe board of directors.
Knock,knock…
"Comein."
"Mr. Schnepp,this is the report on Aiwa phones, and Wind and Rain phones" specs from ourtechnology department. Please have a look." The person-in-charge of the Chinabranch technology department pa.s.sed a file to Schnepp.
Schnepplooked at the facial expression of the other party and suddenly got a badfeeling.
Hequickly opens up the file and starts reading it. The more he reads, the moreshock he was.
How is this possible? How can China"selectronic factory produce such phones? These phones are even better thanMotorola"s phones, and it is also installed with Lenovo"s Pin Yin method oftyping, which is more user-friendly than what they are using.
Their phones" screens are bigger and brighter.The casing is metallic, b.u.t.tons are sensitive, the signal is strong, and the battery"scapacity is bigger. Their phones even come with an original spare battery!
The exterior design is beautiful, and thereare a variety of colors to choose from. The specs of these phones had won Motorola!
Other than the exterior designs, Wind andRain"s phones and Aiwa Phones had the same specs and used the same technology.
That"s right. There are rumors that Windand Rain Electronic and Aiwa Electronic have the same shareholder, and bothcompanies often cooperate.
"Mr. Schnepp, Mr. Schnepp?"
"What?" Schneppreplied impatiently.
"Shouldwe ask the HQ to allow us to sell the latest model of phones in China?"
In thepast, the phones sold in China"s market were older models and were at least 6months behind other developed countries. This was because China is backward. Outdatedphones are already the best phones in China, and Chinese manufacturers use oldtechnologies. Only Nokia phones from Europe can compete with Motorola. ButNokia had entered the Chinese market much later and is no match for Motorola inthis market.
It can besaid that the Chinese market is a place for these overseas companies to cleartheir leftover stocks. But this is the past. With Aiwa and Wind and Rainintroducing their mobile phones, these companies will be courting death if theycontinue to do this!
Thechanges to the market will affect these overseas companies" strategies. Theycould no longer produce phones in large numbers as they have no markets toclear their old stocks.
If thesemobile phones have to sell their latest products in China, then they must findanother market to clear their old stocks. But where can Motorola find anothermarket as big as China?!
……
"President.w.a.tanabe, these are the figures from our tests on Aiwa and Wind and Rainphones. Their phones are better than ours, and our market share will shrinkfurther. After the distribution and marketing cost, we will not have anyprofits!"
PanasonicChina"s person-in-charge, Junji Watanabe, heard the report from hissubordinate. Why is it Aiwa and Wind and Rain again? Why are they alwaysagainst us?!
These twocompanies had never developed mobile phones before, and their first phones areoutstanding. How is this possible?!
……
China"sperson-in-charge for Nokia was also staring at the findings. Nokia had preparedto enter the Chinese market with their mobile phones and thought they only haveto watch out for their main rival, Motorola.
But Aiwaand Wind and Rain suddenly appeared from nowhere, and their phones" specs arebetter than all the phones sold by Nokia in China. The exterior designs are morebeautiful and are domestic brands. With their brand awareness in China, thesetwo companies will surely hold significant market shares. How can Nokiaoutperform the rest?
On thisday, companies like, Ericsson, Sony, NEC, Siemens, etc. who were selling theirmobile phones in China, knew their biggest rival is no longer Motorola orNokia. It should be Aiwa and Wind and Rain.
AiwaPagers had only appeared in the market for 3 years, and they caught up withMotorola. This showed how strong Aiwa Electronic"s R&D is.
If theydid not strategize well and allow Aiwa and Wind and Rain to develop theirmobile phone business, they would have no chance in the future!
The wolfis here!
First,these companies must cooperate. The j.a.panese companies had just returned toChina after the j.a.panese and Chinese Governments signed some treaties.
j.a.panesecompanies no longer have advantages in the industries now. Their main productswere mobile phones and digital cameras. But now, Aiwa and Wind and Rain hadlaunched their own phones!
Thej.a.panese companies know the strategies for these two companies well. They are goodat s.n.a.t.c.hing market shares, especially in China. Once these two companies heldthe majority of the market share, the j.a.panese companies will be kicked out ofthe Chinese market!
This must now happen again!