Chapter 1043: 1043
Chapter 1043 – We can also assemble
“Manager Feng, it’s been a while since we sat down for a chat . ” Liu Chuanzhi laughed .
Both men had been very busy over the past two years . Liu Chuanzhi was busy with expanding Lenovo towards the rest of the world . At the same time, Feng Yu had been busy with the financial crisis and investments after that .
“That’s right . It’s been a while since we chatted . I am impressed with Lenovo’s progress these two years . Lenovo is now China’s leader in the PC market . Your desktop and laptop had won those overseas brands . This is more successful than I expected . ”
Feng Yu is not sure if it was his influence or whatever reasons, Lenovo is growing much faster than his previous life .
Of course, Liu Chuanzhi and the management of Lenovo play a big part in their success .
“This is all because of you . Our cost for the optical drive is the lowest in the world and can get the Microsoft operating system at such a low price . All the expectations set by you had been achieved, and our sales this year might increase by 30%!”
More people are using PCs, and some companies and government agencies are starting to switch to PCs for work . In China, the first choice is Lenovo’s PCs .
“This is terrific . ” Feng Yu’s eyes sparkled . Lenovo’s success means the other PCs brands are suffering . But why is Liu Chuanzhi so confident? Is Lenovo going to introduce a more powerful model, or did he get a large order?
“Our sales should increase by more than 30% . ” Liu Chuanzhi said and took a glance at Feng Yu .
Feng Yu was surprised as he felt Liu Chuanzhi seems to be blaming him .
“Huh? What happened?” Feng Yu asked .
“Did your company develop that new online game that is launched a few days ago?”
“Yes . It’s developed by my company . NetEase is in charge of this games’ China operations, and they had bought the servers from Lenovo . ”
“I heard this game is fun, and many people are queuing up at the Internet cafes to play . But the internet cafes are packed, and some cafes started expanding . Some even open up new internet cafes as they felt the investment is low and can get fast returns . ”
“This is good . These people will need more PCs, and it can increase our product sales . ” Feng Yu smiled . Why is Liu Chuanzhi unhappy over this?
“We thought so at first . But a few Computer malls opened in various parts of China, and they focused on selling computer accessories, software, office equipment, etc . We supported these malls initially as these malls can boost our sales and provide a location for our after-sales services . But within these malls, there are a few shops that specialized in selling hardware, and they had become our biggest competitor!”
Feng Yu immediately understood what Liu Chuanzhi is talking about . He is facing competition from self-assembled PCs!
Self-assembled PC is referring to a customized PC . The customer will tell the shop owner the specs he wants for his PC, and the shop will calculate based on the parts .
Self-assembled PC is much cheaper because it does not include the brand value, and the parts are assembled based on user requirements .
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The branded manufacturer’s biggest advantage is the after-sales services . Still, these shops provided their own warranty for the PCs they assembled .
Those internet cafes require dozens of PCs, and if they can save 500 RMB per PC, their total savings will be tens of thousands .
The amount saved is more than enough to pay for the café’s rent .
“I had told you before that self-assembled PCs will appear in the future . Now, you should know that branding can be both advantageous and disadvantageous . ” Feng Yu laughed . “But who says Lenovo cannot do customized PCs?”
“Ah? Lenovo is going to sell customized PCs? Will this lower our brand value?” Liu Chuanzhi frowned .
“Absolutely not . In fact, we can even snatch the self-assembled PC businesses from those small shops . But we will only be doing bigger orders, and not assembling one or two units . Understand?”
Liu Chuanzhi understood what Feng Yu is talking about . Lenovo can use this strategy to get internet café businesses . Lenovo is currently Asia’s biggest PC manufacturer . Because of its scale, it can get hardware components from its supplier at the lowest rate . This will be their advantage over those small shops .
Also, Lenovo has retail shops in most counties in China, and have the advantage of their distribution channels . With their brand, Lenovo can snatch the orders from those small shops easily .
Lenovo is the leading wholesaler of PCs in China . Those governments and corporates had been buying PCs from them . But those companies they sold to do not have any requirements on the specs, and Lenovo overlooked this .
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All Lenovo needs to do is to set its sights on the gaming industry, and change the CPU, Ram, graphic card, etc . to better ones, and they can sell to the internet cafes .
Lenovo can also start selling customized PCs, or they are already China’s biggest self-assembled PC manufacturers . They can also use Lenovo’s casing and monitors for these customized PCs and promote their brand at the same time .
Those players who couldn’t get enough of playing at Internet cafes will start thinking of buying a PC . At that time, the first brand that comes to their minds will be Lenovo .
Yes . We can introduce a series of a gaming desktop, and it should be popular .
“But those small shops will still take away some of our business . ”
“Manager Liu, you are already getting the bigger slice of the cake, and you should leave some for others . If you really let them sell only PCs parts, how are they going to survive?” Feng Yu shook his head . If Lenovo even takes in the customized PC orders for a single PC, they will monopolize the whole of China’s PC market .
In Feng Yu’s previous life, once a company is about to monopolize the market, a competitor will appear out of nowhere, and this second company will get support from the government .
The Chinese government will not allow anyone to monopolize the market . Even the state-controlled industries like energy, finance, insurance, etc . have more than one state-owned enterprise .
“Alright . Then our desktop sales for this year might reach 40% if you can help . ”
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“What help do you need from me?” Feng Yu asked .
“For example, in your Legend of Mir game, can you add ‘Recommended to run on Lenovo PCs . ’”
When did Old Liu learn about built-in ads?! Feng Yu also owns Lenovo’s shares, and it’s not a problem to give them a hand .
“Alright . Ask your Lenovo’s marketing team to contact Wind and Rain games and just give a token sum for the advertising fee . I will tell them to help you all include this built-in advertisement . Oh, what is the progress of our software?”
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