Age Fubao: Be a group pet in the cannon fodder home

Chapter 965 Two methods
Little Rainbow suddenly understood.

Since the appearance is similar, I believe other functions are not bad.

In this case, the price difference between the two parties is so large, consumers will definitely choose Yuchuang's products instead of Longyun's.

This is aimed at a price war with them.

As we all know, Longyun Company has always disliked price wars with competitors.

Often through further technological leadership, differentiated competition.

However, Yuchuang, which has obtained foreign capital and also contacted foreign engineers through Capte, can choose to directly hit it with wealth and wealth.

Kong Si guessed: "Although our products have applied for patents, they should have made similar products through patent circumvention methods or using foreign homogeneous patents."

That is to say, it is a dead end for the other party to destroy the product through a patent infringement lawsuit.

Can only be forced to fight a price war.

Little Rainbow couldn't help but sighed, "It really doesn't count the cost."

Yes, half-price sales can never cover the cost, which is simply a money-burning behavior.

However, in order to seize the market, Yuchuang still decided to do so.

Cheng Qi analyzed: "I have studied some similar cases in foreign countries. This is usually after capital injection, and the use of price wars to quickly seize the market and drive out competitors."

"If we lose the market in a short period of time, the company's product backlog cannot be sold, and the company's capital reserves may be at risk..."

Cheng Qi didn't need to say what happened next, Little Rainbow Treasure could guess it.

After the collapse of Longyun Company, will the price of Yuchuang remain low?Obviously not.

Only because they have monopolized this market, they will launch a new generation of products that change the soup but not the medicine, and raise the price again.

Make back your lost money doubled.

Because there are no competing products, the price may be higher than before, but consumers have no choice.

This is not good news for the market.

But ordinary consumers are unlikely to be aware of this. Shop around and buy cheaper ones. This is the simple value of all Chinese people.

This time, he really met his opponent.

"In the price war, we will definitely not be able to beat foreign capital, so we can only find a way."

Little Rainbow was a little helpless, as expected, the opponent was even stronger than expected.

Although the method of burning money is simple and rude, who makes their money not as much as others.

Longyun Company can lower the price accordingly, but the profit must always be guaranteed.Otherwise, if it takes a while longer, I'm afraid I won't even be able to pay my salary.

Another way is to win this war, regardless of the cost.

Whether it is looking for new investors or asking for bank loans, you have to lose money and make money.

But Little Rainbow Dash has seen foreign capital with abundant funds.

Back then, she was able to offer her such a high price without blinking an eye, Little Rainbow Dash didn't think that adding external force could beat them.

Cheng Qi couldn't help but sighed, "Actually, there are two other ways."

"First: We upgrade the technology again, just like what we did before, open up a new direction, and put the company's sales focus on new products, and the other party should have no time to respond."

Kongsi shook his head immediately, "The research of every technology takes time, it is impossible to upgrade as soon as you say it, the progress of information technology often obeys Moore's Law, that is, within [-] months to two years, product performance will double. Doubling, it’s not something our R&D team can achieve technological upgrades with a single brainstorm.”

Of course, unless they can buy more advanced patented technology or have the help of other advanced teams.

But this is really difficult. Patented technology is not something that people are willing to sell just because they want to buy it.

There is a saying that rare goods can be lived in, and patents that can bring great progress have extraordinarily high prices.

The cost of research and development is too high.

Cheng Qi can only propose the second way, "We don't accept foreign capital, so we can also merge with large domestic companies, relying on big trees to enjoy the shade, and gaining their support, we may be able to win the price war."

(End of this chapter)