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Extraordinary Genius
Chapter 873 - Finding another way
Norio Ohga was sitting in his office,smoking a cigar. Sony had gone through a rough patch but had recovered now. Itis the same as Norio Ohga. He had been suspended for a while but was rehired bySony as the President.
Who else can do a better job than NorioOhga? During Norio Ohga's suspension, some shareholders and higher managementfought over the position of President, and Chairman Akio Morita stopped theinfighting by getting Norio Ohga back.
Sony's PS game consoles are selling well,and although the Walkman and CD players are on the decline, Sony had foundanother way to make money. Sony is currently pus.h.i.+ng their MD players and hadmade some progress. Also, this product had won AIWA!
Sony's PCs, digital camera, mobile phones,and other electronic products were doing better and Columbia Pictures' debt wasalmost cleared. Next year, Sony has hopes to see high profits and who woulddare to criticize Norio Ohga again?
The progress of all these products made NorioOhga happy, but what made him happier was hearing no US local distributors arewilling to sell Wind and Rain mobile phones in the US!
Norio Ohga was overjoyed when he heard thisinformation.
Hahaha… Serve you, right!
Sony had many compet.i.tors, and some of itscompet.i.tors used underhand methods against them. But there are only a fewpeople whom Sony and Norio Ohga hates. One of them is China's Feng Yu!
If not for this person, AIWA will still beunder Sony, and Sony will always be the leader in the portable music playermarket. Sony's profits will not drop if AIWA had not competed with them,causing their sales and profits to fall.
Also, Feng Yu had made Sony suffer ma.s.sivelosses in the DVD player compet.i.tion, and China's Lenovo, which Feng Yu hadshares in it, caused Sony's PC sales to come to a halt.
Sony's development over the past two yearswas slow and the main reason is Feng Yu!
Now, Feng Yu wants to enter the mobilephone market and had hit a wall. You really think your Wind and Rain brand isinvincible? When it comes to branding, how can you all compete with Sony?
Furthermore, we have been manufacturingmobile phones for years and look at the number of phone models. You all onlyhave one model of phone, and you dare to launch it in the market?
You all can sell your phones in China isbecause the Chinese are ignorant and protective of their own domesticcompanies! Try selling your phones in j.a.pan. If you can sell more than 10,000units, I will immediately resign!
You all still want to enter the US market?You all can't even walk out of China!
We, Sony, have factories all over the world,and not only we have the most advanced technology and branding, but we can alsostill control our production cost. These are what Wind and Rain Electronicslack.
We will not only get back the top positionof the portable music player market, but we will also suppress your mobilephones!
……
"Mr. Silva, nice to meet you." Feng Yusmiled and extended his hand for a handshake. This old man, with white hair, isPhilips CEO for the North America Region.
"Mr. Feng, nice to meet you too. I alwayswanted to meet you, but I was overwhelmed with work."
Silva had wanted to meet Feng Yu becausePhilips and Wind and Rain Electronics are partners, and Feng Yu is a Microsoftdirector, who is also a super tyc.o.o.n that controls the whole Chinese market.But Silva didn't have an excuse to meet Feng Yu.
Now, it's different as Feng Yu was the onewho invited him over.
"Mr. Silva, I had invited you over is toask a favor from Philips."
"We will do our best to help you." Beforecoming here, Silva had received instructions from his headquarters to establisha good relations.h.i.+p with Feng Yu. Feng Yu is an important partner, and Wind andRain's patented technologies had helped Philips much.
"I heard that Philips have some factoriesin North America."
"We have two big production plants and 3small factories," Silva replied. This is not a secret, and anyone can find outif they want.
"Can your factories spare some a.s.semblylines to help us manufacture some electronic products?" Feng Yu asked.
Philips had helped Wind and Rainmanufacture Super VCD players in the past, and currently, their factories inEurope are still doing it.
"Manufacturing products for you? Althoughour factories have lots of orders, we should be able to squeeze out someresources to help you. What are you going to manufacture?" Silva was hintingFeng Yu that Philips will be sacrificing a lot to help him.
"Mobile phones. We hope your factories canhelp us manufacture a batch of Wind and Rain brand of mobile phones. Thequant.i.ty should be around 100,000 units. How much are you all charging?" FengYu asked.
"I need to discuss with the factoriesbefore I can tell you the cost. But I'm afraid our charges will not be cheap."Silva replied.
"I understand. All I want is high-qualityproducts and I have confidence in Philips factories. If possible, please helpme pa.s.s a message to your headquarters that I would like Philips to help memanufacture a batch of phones in Europe."
This was the most straightforward andcheapest solution Feng Yu can come up with. He had thought of getting somesmall electronic factories or less expensive options, but he was worried aboutthe quality.
Also, some technologies in the mobile phonecannot be leaked to small factories. Although these technologies were notpatented or the core technology of the phone, small factories do not haveaccess to them, and it was not worthwhile to pa.s.s these technologies to them.
Don't think there are no imitations in theUS. The US is one of the countries that have the most imitations. How is itpossible that all counterfeits are imported? In Feng Yu's previous life, manyof the counterfeit factories flourished because of orders from the US.
The country that has the most copyright andpatent infringements is also the country that claims to have the mostprotection of copyright and patents. Every year, more than one company had beensued over patent issues in the US.
Due to these considerations, Feng Yufinally decided to get Philips to help him manufacture a batch of phones forthe time being, while he acquires a factory in Canada. It will take a fewmonths before the factory is ready for production.
Feng Yu had wanted to use the current modelof mobile phone to set up the distribution channels in the US. He will not askfor a specialized counter, and being able to sell his phone in the mobile phoneshops is sufficient.
Feng Yu is waiting for Wind and Rain tointroduce new phone models as the new phones will have better technologies anddesigns than all the existing phones in the market. The production cost willalso be lowered, and that's the time to start an aggressive marketing campaign.
Feng Yu and Fu Guangzheng had looked intothe mobile phone market and knew there will be no profits next year. But beforethe end of 1998, there will inevitably be returns and with new models, Wind andRain phones will be accepted by the consumers.
Feng Yu had lunch with Silva before Silvaleft. He will get back to Feng Yu after he consulted his headquarters.
Feng Yu stood in front of his office windows.He wants to create an Electronic empire and make all the big companies in hisprevious life, bow before him!
"President! Look at this report. Wind andRain Electronics had signed an agreement with Philips. Philips factories willhelp Wind and Rain Electronics manufacture a batch of mobile phones, and Windand Rain phones will be entering the Western countries' markets!"
"What? Why is a big company like Philipshelping others to manufacture phones? Also, how are they going to distributetheir phones? Are they using Philips' distribution channels?!"
Norio Ohga frowned. Philips might not be good in the telecommunication industry, but with their help, Wind and Rain Mobile phones might quickly develop in the overseas market!