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Chapter 397: PC Chaos, Comprehensive Encirclement and Suppression

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    After the meeting, Michael returned to Dell's headquarters.

    At this time, Dell is also sorting out some of the problems and drawbacks that have emerged in its competition in the global market in the past few years, and trying to reform them.

    Because Dell knew it very well.  With more and more competitors in the global pc industry.  Dell must give full play to its own advantages in order to stand out in such fierce competition.

    Now Microsoft, Intel, and amd have reached a long-term cooperation with Dell for their own platform. This is Dell's confidence.

    In particular, Microsoft has promised that within the next three years, Dell's products will be free when using the WindowsXP system, which will greatly reduce Dell's costs.

    Under this premise, Dell also feels that the market must undergo a thorough reform before it can gain a firm foothold in the entire PC industry.

    After all, it is still too difficult to rely solely on the hardware products of Changtian Technology to stand out from the encirclement.

    One is that it is unreliable and not accepted by American capital, and the second is that Changtian Technology has no intention of sincerely cooperating with itself, and it has given a large number of products and markets to Shenzhou.

    After analyzing the reasons for its sluggish sales, Dell found that the current price of Dell's sales end is too expensive is an important reason.

    The main reason for this is that Dell invests a lot of costs on third-party sellers, so the price reflected in the hands of consumers will also be quite expensive.

    But in fact, Dell does not make too much money selling a computer, and most of the money is earned by the channel dealer.

    Michael has carried out reforms in some cities in the United States, and all computers are directly operated by Dell instead of handing over to third-party distributors.

    In this way, the channel cost can be greatly reduced, and the price is the same.

    Since then, Dell has a very advantageous price, which is not only lower than IBM and other brands, but also much lower than Lianxiang, which is famous for its low price from Xiaguo.

    Michael decided to promote this direct sales model globally, including Europe and Xiaguo.

    In the pc industry in June 2002 two major events took place.

    The first thing is that Dell has changed its global sales system, from agent and franchisee sales to direct sales, and the sales prices of all series of Dell computers worldwide have been reduced by more than 20%.

    Overnight, Dell became synonymous with cost-effectiveness and became the world's most cost-effective PC manufacturer.

    The second thing is also related to Dell. Dell has fully embraced Microsoft's windows xp system in the European market. Dell's latest PC will not be equipped with any Changtian technology hardware devices, and will be equipped with genuine windows xp system.

    At the same time, Dell will stop purchasing carbon crystal memory and carbon crystal hard drives from Changtian Technology, and will not continue to purchase motherboards from Onda.

    In the Xiaguo market, Dell began to exert its strength crazily. Because it adopted the direct sales model and saved the cost of the Windows XP system, all models of PCs in the Xiaguo market began to cut prices by more than 20%.

    In less than a week, the sales of Dell's directly-operated stores are extremely hot. Some relevant industry insiders have made a simple assessment. According to Dell's sales growth rate, it is very likely that this year it will surpass Lianxiang and become Xiaguo's flagship store.  The king of sales.

    Michael was also surprised by this effect after the reform.

    He did not expect that what consumers care about is not the performance of the computer but the price.

    As long as your computer is cheap enough, even if your performance is a little bit worse than other brands or comparable to other brands, consumers will definitely choose you.

    Dell's sudden force caught PC manufacturers all over the world by surprise, especially Xia Guo's Lianxiang, Shenzhou and other manufacturers were amazed.

    In order to expand its market as soon as possible, Lianxiang handed over all sales channels to third-party sellers.

    In order to make sellers more actively help Lianxiang sell computers and expand the market, Lianxiang made huge profit concessions to these sellers, so despite the high price of Lianxiang's computers, the profits allocated to Lianxiang are not compared to other companies.  How high is the brand.

    And Dell's move really caught Lianxiang off guard.

    At the same time, consumers in Xiaguo have also tasted the sweetness from it. Not only are the computers cheap, but they can also use the genuine Windows XP system.

    For this new system, Xiaguo's consumer response is genuine fragrance.

    At this moment, Chen Xiao, Wang Xiang and others are negotiating with Wu Jun on equity in Shenzhen City.

    Everyone also knew the above news for the first time.

    Ang Da's boss, Li Da, couldn't sit still at first, and immediately gave?? Xiao made a phone call.

    At present, Changtian Technology is Angda's major shareholder. According to the equity structure and company structure, Li Da can also be regarded as Chen Xiao's subordinate.

    When encountering such a major emergency, Li Da must report to Chen Xiao as soon as possible.

    "Mr. Chen, I have just received news that Dell has canceled a motherboard order worth 50 million yuan, what is the situation?"

    Li Da is very anxious, after all, 50 million is not a small number for the whole Onda, and Onda's plan for this year is to include Dell's procurement budget.

    Therefore, whether it is in the procurement of raw materials or in the expansion of the factory, Onda has already done the preliminary work and a lot of investment.

    Now that Dell suddenly canceled the order, Angta was caught off guard.

    Chen Xiao said: "Dell not only canceled the order of Angda, but also canceled the order of Changtian Technology. Their current computer equipment no longer uses the hardware products of Changtian Technology, and of course they will not use the motherboard of Angda.  "

    "Ah?!" Li Da was stunned. He hadn't thought of the cooperation agreement reached by Shuangfa at the end of last year. Dell broke the contract only half a year later. "What's going on?"

    Chen Xiao said casually: "It's because it couldn't withstand the pressure of the genuine system in Europe, and had no choice but to compromise with Windows XP."

    "The European market is different from the Xiaguo market. In the European market, although Dell can also deal with the use of pirated Windows XP systems through technology, the European legal department does not allow multinational companies like Dell to do so."

    "If Dell dares to use a pirated system in Europe, he may be fined and bankrupt."

    There is another reason for Dell's sudden rise, which Chen Xiao didn't tell Li Da.

    From 2001 to 2003, due to poor global sales, Dell conducted a system analysis and changed its sales system again.  Carried out a complete sales system reform.

    Directly throw away third-party operators and distributors, but use the direct sales model.

    In this way, the reduced sales cost of Dell is reflected in the price of the terminal, which is extremely friendly to consumers.

    Chen Xiao remembers that around 2002, Dell's sales volume in the global market became the number one, and it also surpassed Lianxiang to become the number one in the Xiaguo market.

    This trend was not reversed until Lianxiang acquired IBM's personal pc department in 2004.

    I didn't expect to be reborn.  Dell rejected Changtian Technology's hardware and carried out sales reforms. These two things happened at the same time by chance. This is funny.
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