When I am reborn, I just want to be a top student

Deep city.

DJI headquarters, crisis control room.

At this moment, the atmosphere in the room was extremely heavy.

There are only a handful of people who can be here.

But they are all core components of DJI.

"I'm sure you all have some guesses about why I called you all here today."

"I think you are all well aware of the company's situation, but I still want to mention it again here."

"In the consumer market, we currently only hold a 34% share, but our peak share was 78%."

"The cancellation rate for agricultural drones has reached 46%, which is nearly half. Especially recently, more than 80% of customers want to cancel their orders."

"Whether it's our high-end products or our mid-to-low-end products, sales have declined to varying degrees."

"However, the global drone business is still growing."

“根据前瞻产业研究院发布的《2014-2018年中国无人机行业市场需求预测及投资战略规划分析报告》数据显示，全球无人机研发和采购的市场规模每年约为50-60亿美元，未来10年这一规模将以年均10%的左右的速度稳步发展。”

"Everyone knows that the drone industry is still developing, but our market share is shrinking."

"The reason is clear to everyone."

"That is Galaxy Technology!"

As Wang Tao uttered the name, the expressions of everyone present became extremely serious.

Initially, they didn't take Galaxy Technology seriously.

I only noticed them because the team from Tangdu Jiaotong University won first place in the National College Student Competition for their drone technology, which was indeed very impressive.

By that time, DJI had already become one of the leading companies in the field in China.

Although their drone business wasn't very large back then, they had enough confidence to look down on those students at Tangdu Jiaotong University.

Out of respect for talent, they specifically sent people to recruit and secure talent.

But unexpectedly, they returned empty-handed.

From then on, Galaxy Technology officially began its drone business.

Drones are a strange product; they seem to have high barriers to entry, but in reality, they only involve two core technologies.

However, if the technological barriers are not high enough, many companies want to enter the market, try it out, but ultimately have to give up.

Therefore, they didn't take Galaxy Technology seriously when it entered the drone business.

However, they soon regretted it.

Galaxy Technology is incredibly powerful.

Upon entering the market, their first product successfully opened up the market.

Subsequent developments went even more smoothly and effortlessly.

Seeing Galaxy Technology's smooth development in the drone field and its increasing market share, DJI has also taken many countermeasures.

For example, business practices such as price reductions.

However, Galaxy Technology is wealthy and powerful, and is not afraid at all.

Furthermore, they collaborate with universities and vocational schools to train professional drone pilots.

At first, DJI mocked Galaxy Technology's approach, saying it was a waste of money and effort.

However, who could have imagined that drones would develop so rapidly and have so many applications?

Wedding photography, tourism, adventure, plant protection, transportation, etc.

Some simple operations are fine.

However, large drones must be subject to strict standards.

Galaxy Technology's performance is nothing like that of a newcomer; it's more like that of a pioneer.

DJI, on the other hand, followed closely behind Galaxy Technology.

Therefore, the current market share is, to some extent, entirely reasonable.

"Today, I've called everyone here not to reopen old wounds, but to seek a solution."

"Given the current situation and the speed of Galaxy Technology's development, I think everyone is quite clear about how much longer we can hold on."

"It can be said that we have reached a critical moment of life and death."

“Every choice we make will affect ourselves and everyone in the company.”

After Wang Tao finished speaking, everyone present became extremely serious.

indeed!

DJI was originally a leading company in a niche industry, and the capital market was extremely optimistic about it.

Even a unicorn in a niche industry is still a unicorn.

Moreover, drones are still developing and the market is expanding, so there are still many stories to look forward to for investors.

If it were to go public, its market value could be significantly increased, generating huge profits.

But now, there is nothing.

Let alone going public, just being able to maintain the brand is already quite remarkable.

Previously, they had fallen behind Galaxy Technology and lost half of their market share due to issues with flight control systems, supply chain costs, and design concepts.

Now, Galaxy Technology has developed the Xuanwu Battery, a powerful weapon.

This would be a true catastrophe for DJI.

Even Apple has to reluctantly purchase batteries from Galaxy Technology because of battery life issues.

This is especially true for electronic products like drones that have extremely high battery requirements.

Other companies' drones can fly for an hour, but theirs can only fly for twenty minutes.

Even if the former is more expensive, the heartache caused by the higher price will be compensated when you use it.

If you actually buy a phone with a short battery life, aside from being happy about saving money at the time of purchase, you'll probably experience a lot of dissatisfaction for the rest of the time.

Why didn't I spend a little more money to buy a better product? Otherwise, the battery life wouldn't be so bad.

A good businessman not only needs to produce good products, but also needs to be able to market them.

DJI did consider incorporating the Xuanwu battery into its products, but all its cooperation requests were rejected.

indeed!

With real business competition, it's naturally impossible to have a product like the Xuanwu Battery.

DJI had considered this when it made the cooperation request.

In the end, I decided to give it a try.

The result is no surprise.

And the other side.

Because of their knowledge of the performance of Xuanwu batteries, many potential consumers are waiting.

When Galaxy Technology launches drone products equipped with Xuanwu batteries.

Even some consumers who had previously purchased the product wanted to return it and save it to buy Galaxy Technology's drones.

This is a major reason why DJI drones have recently experienced a high return rate.

The room was quiet; no one spoke.

Wang Tao understood what everyone was thinking.

Faced with this situation, no one really had any good solutions.

Even he himself was the same. If there were a way, he would have done it long ago; why would he have convened this conference?

However, at that moment, a voice rang out.

"I think we can change our mindset and reposition our products. Since we don't have Xuanwu batteries, then we won't use Xuanwu batteries."

"Given the cost of Xuanwu batteries, even if they were to be listed on the market, they would definitely be priced high."

“We can take advantage of the launch of Galaxy Technology’s drones equipped with Xuanwu batteries to position ourselves as a drone brand that ordinary people can afford.”

"We will lower the price of our products by about 10% from the current level."

"Furthermore, through intensive media promotion, we will market ourselves as the first drone for young people, affordable and the best choice for beginners to practice with."

"By occupying the low-to-mid-end market and reducing profit margins, although it sounds unpleasant, in my opinion, it is a good way to help us stabilize our market share."

Hearing these words, everyone in the conference room fell into deep thought.

This statement may seem long, but its core is actually quite simple.

That means positioning ourselves in the low-to-mid-end market and leaving the high-end market to Galaxy Technology.

If you can't compete, just give up and hand over the high-end market.

Although the profit margin in the low-to-mid-end market is low, as long as advertising is done well, the market share may not be small.

Small profits but quick turnover can also lead to big profits.

Wang Tao's expression remained unchanged, and he did not offer any opinion on the proposal.

"Giving up the high-end market and consolidating the mid-to-low-end market is easier said than done."

"What if Galaxy Technology doesn't intend to let go of the low-to-mid-end market? What if Galaxy Technology starts mass-producing Xuanwu batteries, reducing costs and driving down prices?"

"Consumers know that Galaxy Technology's drones are more stable and have longer battery life. How can we get them to buy our products?"

"There are too many uncertainties; we can't take such a big risk."

Immediately after the suggestion was made, some people voiced their opposition.

"I would like to remind everyone not to forget that in addition to the domestic market, there is also the overseas market."

"The same drone costs 2,000 yuan in China, with all costs totaling 1,000 yuan, but overseas, the price and cost are at least five times higher."

“When the domestic market was declining, we started to try overseas markets.”

"And the result was quite good."

"The overseas market is vast and has high profit margins."

“We can definitely focus on overseas markets, and even move our factories overseas and expand our international routes.”

The head of the sales department offered his suggestions.

Wang Tao's eyes lit up slightly, but he still didn't say anything.

"I think this approach is fundamentally unworkable. If we can't even hold onto our domestic market share, then we'll definitely be the same overseas."

"It's impossible that we're the only ones paying attention to overseas markets while Galaxy Technology is oblivious."

"Although Galaxy Technology has not conducted business overseas in the past two years due to sanctions."

"But as far as I know, Galaxy Technologies has not given up exports. Last year alone, its export volume reached more than 30 billion US dollars."

"Among them are products such as Evergreen Liquid and drones."

"In addition, if we continue to stick to our current development path, we may still have a chance, but if we abandon our current development strategy and go for a low-price strategy, I estimate that we will collapse by the end of the year."

“Our products have never been positioned as low-end products from the beginning, and our costs are what they are.”

"We won't make flying tractors," is a phrase that Mr. Wang has always said.

"Now, if the company changes course, the resulting chaos will be the best opportunity for Galaxy Technology to launch an attack."

Listening to the speeches of many senior executives, Wang Tao remained calm, his heart as still as water, undisturbed.

He had already made up his mind before the meeting even started.

The reason for holding this meeting was simply to see what everyone was capable of.

After everyone had finished speaking...

Wang Tao spoke up.

"Can we develop the Xuanwu Battery?"

Everyone was silent and speechless.

"Or rather, can our R&D team develop a product that is close to the Xuanwu battery?"

Still no one speaks.

"Okay, putting aside the Xuanwu battery, how long will it take for us to catch up with Galaxy Technology in terms of flight control systems?"

Wang Tao changed the subject and asked aloud.

"Since no one else is saying it, I will. With increased investment, let's be optimistic and think we can catch up in two or three years."

"But if we maintain our current R&D investment, to be pessimistic, we may have no chance at all."

"Because Galaxy Technology invests more in research and development than we do, they have more talent, and even our research and development talent are trying to switch jobs to them."

"This is a very regrettable and pessimistic reality."

"Galaxy Technology has entered a positive cycle, which is basically unsolvable."

"Now, we seem to have many paths in front of us: overseas markets, low-price strategy, and special supply strategy."

"It seems like a lot, but in reality we have no choice at all."

“If Galaxy Technology catches up, we will have no competitiveness whatsoever.”

"Therefore, we only have two choices: either persevere to the end and go bankrupt and be liquidated."

"Either it gets acquired by Galaxy Technology!"

When Wang Tao uttered his last words, everyone was shocked.

No one expected Wang Tao to say that.

As the founder of a company, he actually said that his company was acquired by someone else.

This is tantamount to handing your own child over to someone else.

They all knew how much effort Wang Tao had put into DJI and how much he valued it.

Although they had such thoughts in their minds, they never showed them.

At DJI, they were executives, but at Galaxy Technology, they weren't.

The former may achieve financial freedom, while the latter, although offering good benefits, lacks appeal.

Hearing the news of the acquisition coming from Wang Tao immediately spurred everyone on.

Originally, he wanted to voice his opposition or persuade Wang Tao to reconsider, but he swallowed his words.

DJI is already in this state, barely alive.

If things continue like this, the most likely outcome is bankruptcy liquidation, or being acquired by Galaxy Technology when it's on its last legs.

Even these executives won't be financially independent by then.

But what if it were acquired by Galaxy Technology now?

Based on its current market share, it can be sold at a high price.

At the thought of this, their hearts began to pound.

Wang Tao observed everyone's reactions.

A strange sense of sadness welled up inside her, but she quickly regained her composure and continued, "Everyone, please think this over carefully!" (End of Chapter)