C303 Alliance Strategy
C303 Alliance Strategy
In the past, Toyota had been targeted as a competitor for its model, but because of the decline in Toyota's price, toyota's Camry, Volkswagen Meteng, Toyota Accord, and Buick Junwei were competitors of the same level. Each of them had their own market share, and each of them had their own potential users. However, Camry's price suddenly dropped by more than 30,000. As for the other models... There was simply no way for them to compete with each other.
At this moment, General Group and Volkswagen Group were holding an emergency meeting. The center of the meeting was Toyota's price reduction measures. And they were simply unable to influence Toyota's own decision. So, they could only use their own countermeasures against Toyota's actions.
As Zhang Yunfeng expected, after Toyota announced that the price would be lowered... The other brands responded one after another. The response speed was so fast that it made people speechless. It was as if they had already made an agreement with each other, and there was a wave of discussion among the consumers all over the country. On the Internet, the latest model prices and matching preferential policies were exposed everywhere. And among the people, the topics of discussion these days were all focused on cars.
In the past, families and consumers who did not plan to buy cars or had plans to buy cars in the future... The rhythm of their shopping had been greatly improved. Now... They felt that the price of cars could not be missed, so they began to prepare to buy cars. As for their relatives and friends, the most discussed topic was which car they liked the most, how much the price of the car had dropped, and when it would be the most suitable time to sell it.
At the same time, Zhang Yunfeng and Long Xiaoyue walked into the building of the Business Department together. Today, the Business Department was going to hold an internal meeting. The theme of the meeting was related to the cooperation between Dongchen Automobile and other state-owned brands.
In this kind of occasion, Zhang Yunfeng still needed Long Xiaoyue to come out and support him. The position he put up today was no longer Long Xiaoyue's assistant, but the representative appointed by Long Xiaoyue.
Other than Zhang Yunfeng and Long Xiaoyue, there were also First Automaton, Second Automaton, Zhonghai Automotive Group, Yanjing Automotive Group, and North Automotive Group. These companies were all state-owned enterprises, and they had 100% effectiveness in implementing the policies. The reason why they did not inform the private companies about the participation of the Automobile Enterprise was partly because of their poor obedience. On the other hand, the Ministry of Commerce also wanted to keep the fertilizer from the fields, and first use the advanced technology of the Dongchen Automobile. They wanted to arm the state-owned brand. The private brand could be put aside for the time being.
During this meeting, the Ministry of Commerce issued a red head document. It would be classified as confidential. The other companies participating in this meeting were all the leaders of the companies. They did not even have the qualifications to be an assistant.
After the person in charge of the Ministry of Commerce gave a simple opening speech, he directly handed the matter to Zhang Yunfeng and said, "As for the specific plan, let's get Dongchen Automobile to represent Mr. Zhang to explain it to everyone."
The leaders of the companies present were mostly middle-aged men, and some of them had even entered the old age. However, the two people who came from Dongchen Automobile were very young. Long Xiaoyue was only 23 or 24 years old, while Zhang Yunfeng was dressed in formal clothes and was well-dressed. He also seemed to be the same age as Long Xiaoyue, but even so, it still made the leaders of these companies not used to it because of the structure and system of state-owned enterprises. It made them look at the young people as if they were looking at the younger generation.
Zhang Yunfeng opened the microphone in front of him and said calmly, "Everyone, the main reason why we are holding such a meeting today is... It's because Toyota's previous actions caused the entire market to drop in price. Now, everyone should be deeply affected by this. For the products produced by your companies, their original competitive ability was relatively weak. They could only rely on compressing the profit margin and maintaining a cost-effective ratio to protect their own market. Now, after these multinational corporations started to lower their prices, the survival space of the companies was infinitely compressed. If you lower the price according to their ratio, I'm afraid you won't have any room for profit, right?"
The leaders of these companies all had awkward expressions on their faces, but they could not refute it. The lack of competition in their products was an obvious fact. This was due to their backward technology. Zhang Yunfeng was one of Dong Chen's men, and their technical abilities were top-notch. Therefore, he had the right to criticize any car manufacturer in the world.
After Zhang Yunfeng said this, many of the people beside him also showed a look of agreement. After all, they knew very well that the profits of the products were small. They relied on low profits and high cost-performance ratio to enter the market. Now, other people lowered their prices, but they couldn't lower their prices anymore, lower their prices, lower their prices, lower their prices, lower their prices, lower their prices, lower their prices, lower their prices. When that time came, other people would sell a car to measure how much they earned. When they sold a car, they would measure how much they lost.
The First Automaton Manager said helplessly, "We are now in the domestic vehicle market. The best brand is First Automaton. Galloping Galloping Galloping was originally produced on the platform of First Automaton. Our chassis and engines... We use the technology of the Horse Galloping Galloping, and our price... It is a level lower than the Motors Motors Motors, so it is also because of this... It is guaranteed that there will be more than 100,000 sales every year. However... Now, Ma Zeda has also started to implement a price reduction strategy, causing our stampede to lose its competitive edge. In the few days that foreign companies have started to lower their prices, the sales of our companies have not exceeded 20 units per day. From the looks of it, we might not even be able to sell 10,000 units a year. We have already started to prepare to close off 80% of our productivity, reduce production, save costs, and reduce losses. "
Zhang Yunfeng nodded and said, "I think all the domestic brands are facing such an awkward situation now. Most of the consumers who bought the domestic cars were not able to afford the imported brands or joint brands of cars. Now, they have started to reduce the price by a large margin, which also reduced the competition of domestic brands. If this continues, I think it will take less than a year. Other than domestic brands that focus on the lowest end of the market, all other domestic brands will be defeated. "
"That's right." The leader of Zhonghai Automotive nodded and said, "Our own brand, Rongwei, is also facing such a situation. It's very awkward. If this continues, this brand will be finished. As for our Zhonghai Automotive Group, we can only produce joint vehicles in the future. "
Zhang Yunfeng smiled and said, "This is also the reason why this meeting is held today. Previously, when the Ministry of Commerce put down the documents, they did not tell you the main purpose of this meeting. The reason is that the content of this meeting is relatively confidential, so it is not suitable to mention it directly in the document. Since everyone is sitting together now, I will say it clearly. "
Zhang Yunfeng paused for a moment and said seriously," Due to the current situation, your companies have their own brands. I am afraid that in a short period of time, you will have to face a difficult choice. You will continue to sacrifice your meager profits. Or should we stop most of the production to wait and see and maintain our own strength. However, I can tell you very clearly that these two paths... Neither of them will work."
The others all had grim expressions. Zhang Yunfeng spoke again, "In the face of such a situation, the country has two ways to resolve it. The first is to use force to prevent these brands from lowering their prices to protect the survival ability of the state-owned brands. However, this will inevitably cause misunderstanding among the people, and it will be a large-scale misunderstanding. Therefore, this method could not be used unless absolutely necessary. Furthermore, even if it was used, it might not have a good effect. I'm afraid it will have the opposite effect."
"The second method is to find a way to increase everyone's competitiveness and allow everyone to gain a foothold in this flood of lowering prices. Today, I want to talk to everyone about the second method."
The person in charge of First Automaton asked, "Mr. Zhang, do you mean that Dong Chen wants to cooperate with us?"
Zhang Yunfeng nodded and said with a smile, "If it wasn't for the cooperation, we wouldn't be sitting together today." After saying that, Zhang Yunfeng paused and said, "Now, Dong Chen will give everyone a solution and see if everyone can accept it."
The eyes of the person in charge of First Automaton lit up and said, "Please speak."
Zhang Yunfeng smiled and said, "It's like this. We suggest that you temporarily stop production for at least 70% of the time being. We can use this to reduce the cost and expenditure to prevent a large amount of cash from being taken up by a bunch of cars that can't be sold. And 70% of the production that has been stopped is all used to manufacture for Dong Chen. "
"As for those who have their own engine production lines, they will give full authorization to Dong Chen to operate the production line. In return, Dong Chen will provide everyone with their own engines. Authorize all of you to use the Dongchen Engine on your own model, and we guarantee that... The engine that Dong Chen authorized everyone, in terms of price... It will not be more expensive than engines of the same level in the market. But... In terms of performance, it will increase by at least 15%. "
This sentence made everyone's eyes light up. Dong Chen's engine? This was good news! If combined with Dong Chen's engine, their fuel economy. incomparable to other brands, even though other brands were selling at a lower price. However, if the domestic brands' cars had a huge economic increase, then it could naturally make up for the gap caused by the other brands' lower prices. After all, buying a car was only a temporary effort, but raising a car was a continuous expenditure of at least a few years. If it could reduce the use and maintenance costs, in comparison... The latter was more worthwhile.
At this time, the person in charge of the Yanjing Automobiles asked, "Wouldn't there be a conflict in this case? First, we have to give 70% of the production capacity to Dong Chen, and then we will change into his engine. Our own competition will be guaranteed, so we will have our own brand's demand. It might even rise, leaving only 30% of our production capacity for us. It's also very difficult for us to meet the market demand. "
Zhang Yunfeng smiled faintly and said, "This is the condition for cooperation. After all, Dong Chen will not give the authorization to everyone to use the engine for free. Moreover, it was not higher than the price of other engines of the same grade in the market. Dong Chen made a concession. Your company naturally needs to make a certain concession and sacrifice in order to be called a cooperation. "
Zhang Yunfeng said, "Actually, we can settle some accounts. Your car production line. None of them can produce 100% of the production line. Basically, all the production lines are slowing down. The production capacity used will not exceed 60% of the original production line's maximum capacity. I will take 70%, the remaining 30%, and you can start production at full capacity. The output will only be reduced by half, but you will be able to regain market competition. It is much better than being pushed out by foreign brands, right? "
Everyone was silent. Zhang Yunfeng was right, but they still found it hard to accept Zhang Yunfeng's request.
It was as if they had fallen into the water with their net worth. Someone was rowing closer. Say, give me 70% of what you have on you. I'll let you board the boat, but for them... They still had a glimmer of hope that they could swim to the shore by themselves. However, they were unwilling to think that if they fell into the water and drowned... The outcome would be even worse than this.
Zhang Yunfeng said, "I want 70% of your productivity, and it's not for nothing. This 70% is given to Dong Chen, and you guys will be in charge of it. Dong Chen will guarantee your profits for this part. When the time comes... Compared to you, 30% of your productivity will be managed by yourselves. The remaining 70% will also have a sizeable income. You will not be able to close down most of the production lines and reduce the number of employees. "
Zhang Yunfeng immediately said another condition and said, "I will not occupy 70% of your production capacity for long. As long as we start working together. After signing the agreement, starting from the first day of production, after every quarter, I will take the initiative to reduce by 5%. That is to say, after the first quarter of cooperation is completed, I will change the ratio from 70: 30 to 65, after three months, it will be 60: 40, and I will take 70 points from you. I will return 5 points every three months, and 20 points per year. In three and a half years at most, Dong Chen will not use your production line anymore. At that time, you will still be able to obtain Dong Chen's engine supply. Furthermore, what I can promise you is that if we cooperate happily... Dong Chen can consider authorizing other technologies for you to use. "
These words caused a ripple in the crowd. If they felt that they were facing a selling contract just now, but now... They were much more rational and more comfortable... This method of cooperation that was constantly regressing was still acceptable to them.
In fact, what Zhang Yunfeng needed was still a time difference. He could not perform magic now. It was illogical and irregular to produce multiple car production lines all of a sudden. Even with the Super Learning System, he still had to eat bit by bit. Now that Toyota was leading the drop in price, he needed to increase production capacity in a short period of time to occupy the market. On the one hand, he avoided the market and the potential market being snatched away. On the other hand, it also made the consumers more confident in Dong Chen.
As for the production lines of these state-owned enterprises, even if they let Zhang Yunfeng use them all the time, Zhang Yunfeng would never agree. What he really wanted was... His own production line, his high production capacity, and now... He needed these production lines to buy him some time, and the time he needed to win... He would be able to drive and build his own production line.
At this time, the person in charge of the Yanjing Automobiles asked, "Mr. Zhang, the engine that Dong Chen authorized us, you promised to be 15% stronger than the current engines of the same level. But from what we know, the strength of the Dongchen Engine... Compared to the performance and fuel consumption of engines of the same level, there is a 30% and 40% improvement. The difference between the two is one fold. Can I interpret it as... What Dong Chen authorized us is only an emasculated version? "
Zhang Yunfeng nodded without hiding anything, and said, "Dong Chen's own core competitive ability naturally cannot be given away to others. But even if it is an emasculated version, it is enough for everyone to increase the market's competitive strength. Moreover, our other core technologies can also be authorized to give you an emasculated version. For example, our transmission system."
The person in charge of this meeting in the Ministry of Commerce said, "Mr. Zhang's suggestion is very beneficial to all of you. First of all, your production capacity is being wasted, and you are also facing huge competition pressure. As for the brand changing Dongchen Engine, it also needs to continuously accumulate the market's reputation. Therefore, the gradual return point proposed by Mr. Zhang was very reasonable for everyone. If the return point was too much, you would get extra production power in an instant. However, the market was unable to digest it, and it would still affect you. If you return less points, you will not get more production. And then... It's not good for your competition. "
Everyone nodded their heads repeatedly, as if they were deep in thought. At this moment, Zhang Yunfeng... In the next city, he said, "What we need to do now is not just to cooperate. It's not as simple as that. Facing the impact and monopolization of foreign brands for decades, it is also time for domestic brands to launch a counterattack. As for Dong Chen, he is willing to be the vanguard of this counterattack. If everyone reached a consensus today, then we will no longer be a few car Manufacturing Enterprise. We will be an alliance and a united front."
The eyes of the person in charge of the business department lit up, and he said, "Mr. Zhang's idea is very good! Why don't we just create an alliance, just like the Sky Harmony Alliance and the Star Sky Alliance. We will introduce a common brand in the future. Everyone's products, apart from their own brands and logo, the logo of an alliance will also be added. With that, the overall competition will be even more obvious! "
These words moved everyone present, and everyone immediately started discussing amongst themselves. Zhang Yunfeng thought that this might not be a bad thing, so he said, "Since that's the case, I agree with this idea. After we reached an agreement, " We will announce to the public the establishment of an automotive alliance, with the exception of our brands, in the future, we will be able to attract more domestic brands to join us. Push the overall competition of domestic cars to the top! "