Chapter 1390 - Cooperation and plotting
Chapter 1390 – Cooperation and plotting
“I’m happy, I’m happy, three thousand dollars is going into my pocket….”
“Ahem!” Feng Yu stood behind Wu Zhigang and cleared his throat. “You are so happy because of three thousand dollars? Who dares to give our Tai Hua Holding’s Deputy President such low-value gift?”
Wu Zhigang smiled embarrassedly. “Boss, are you not happy about this? Microsoft Office is finished! Someone had developed a universal activation code generator, and their original version’s sales had plunged. From what we gathered, their sales fell by more than 90%, and I estimate it will fall to zero in a few days!”
“Do you think our office software is sellable when they can’t sell their Office software? Everyone is going to use the free version, and we are also affected. This is a double-edged sword. Don’t forget that we had also invested a lot in marketing.” Feng Yu reminded.
That’s right. Microsoft’s Office had suffered a devastating blow, but Lenovo Kingsoft is also affected. Other countries’ piracy is not as serious as China. Not many users will buy or download pirated software.
In Feng Yu’s previous life, very few people use free software overseas. First, it’s troublesome to download. Secondly, they are concerned about security. In China, it is the opposite. Very few people use paid software because why should they pay if they can get it for free?
If someone sold the pirated software, Microsoft could get the local government to take action. Profiting from pirated software is against the law.
But piracy also has an advantage. It will eliminate those smaller office software developers. These companies will not profit from their products, and users will not even use them when free.
Smaller companies will not have sufficient funds to take this blow, and they will be kicked out of the market. This is fine if it’s only a few months, but the current situation will last for at least two to three years.
Microsoft’s losses will be the greatest, followed by Lenovo Kingsoft and Softbank.
Softbank had invested in many IT-related companies, and many of them are office software companies. No one will be using these companies’ products, and they might even go bankrupt.
Feng Yu and the rest know that they and Microsoft will dominate the market in the future.
When the World’s No. 1 and No. 2 start fighting, the rest will suffer massive losses. For example, Coca-Cola and Pepsi fought over the Chinese market in Feng Yu’s previous life. Both companies advertised aggressively and launched all sorts of promotions.
This caused Fen Huang Cola, Fei Chang Cola, and other Chinese Cola brands to disappear. During the time when Jia Duobao and Wang Laoji fought for market share, a local beverage brand, Qizheng, also disappeared.
This is like squeezing the people behind you out and raise the ladder. Those companies without sufficient funds will fall and might even disappear.
“Alright. We had already spent on advertising, and we should continue with it. Maybe many people will try both software. After all, our software is cheap, and they will not use the free Microsoft Office for too long because they might download trojans. Those who use original software will continue to buy original copies, especially those companies. They will be worried about security.” Feng Yu said.
“Yes. We think so too. We will try to get more users these two to three years to gain the upper hand when they and Microsoft launch new office software versions then.”
Gain the upper hand? Quite ambitious. Users had gotten used to Microsoft Office for more than ten years. They had set the standards for at least five years, and it’s not realistic to beat them so easily.
Microsoft has a reserve of technologies and is very powerful. They had caught them off guarded and spent lesser on R&D this time. But two years later, Lenovo Kingsoft employees’ wages will increase, and they will lose their cost advantage.
Luckily, Feng Yu had thought about this before. Tai Hua Holdings and Wind and Rain Holding have a long-time partner, Tata Group, and they are a super conglomerate in multiple industries. They are also India’s biggest conglomerate.
Tata Consultancy Services is also very strong in software. India is one of the top countries in the IT industry.
How are they going to drag the leader off his throne? The easiest way is to work with the rest to drag him down and share the loot.
Most importantly, Feng Yu has many cooperations with Tata Group. Automobile, electronics, IT, trade, chemicals, etc. As India’s top conglomerate, they have business in the same industries as Feng Yu. They have around 100 subsidiaries, and this is more than Feng Yu.
Feng Yu does not have any suitable partners in the US. He had wanted to work with Bill Gates, but it seems it is impossible.
Feng Yu need to look for a new suitable partner. He is partnering with Philips, Thomson, etc., in Europe. Although these companies are not in as many industries as Tata Group, they are the best in their respective industries.
Bill Gates felt Feng Yu’s roots are not deep, and the latter will prove him wrong.
Tata Group’s Tata Communication had bought India’s Karbonn Mobile shares, but their mobile phone technologies are slightly outdated. Nokia is No. 1 in India’s mobile phone market, followed by Samsung, Motorola, Karbonn, Wind and Rain Mobile, and Sony Ericsson.
But Tata Communications want to establish their brand, and they entered into a cooperation with Tai Hua Holding.
They are interested in Wind and Rain Mobile’s supercheap phone and smartphone technologies. The cheap phone technology refers to low-cost production and materials, and Wind and Rain Mobile cooperated with Karbonn Mobile.
The title of World’s Factory will shift from China to India in the future. Foxconn, the world’s top contract manufacturer, will also shift its factories because of low labor costs.
Feng Yu plans to use India as China’s contract manufacturer. The Chinese should not focus on manufacturing and should focus on R&D.
One day, those developed countries will manufacture for China.
Feng Yu only knows of one company that had achieved this. Galanz, the leader in the microwave industry. Wind and Rain Electronics had researched microwave and convection ovens. But later, they used their technologies to invest in Galanz directly.
Galanz quickly moved out of China, and become the World’s top-selling home appliances, and redefine microwave. They lowered the microwave oven from 2,000 to less than 500.
This company impressed Feng Yu because it had hired a Japanese firm as their OEM. They paid this Japanese company 5 USD per oven produced. All along, the Japanese brands hired Chinese factories as their OEM, but Galanz did the opposite.
Feng Yu also want to let Japan, the US, and other countries by China’s OEM.
“Manager Feng, Ballmer is calling.”
Translator’s notes: Wu Zhigang is singing something from a popular cross-talk.
Tata Consultancy Services