In 1978, I was admitted to Harbin Institute of Technology

Chapter 148: International giants are about to enter, has the pit been dug?

After communicating with the two of them, Xie Wei was very tired.

Tired.

There's no way. The two of them simply don't understand how fierce the real market competition is.

It's no use relying on him to explain.

Some things require them to experience them themselves in the future, and they will naturally understand them after they are exposed to them.

People cannot teach others, but things can teach people, once is enough.

"Why? Didn't the principal bring back a large number of orders? Why are you so sad? Is it because the principal doesn't plan to share the profits with the school-enterprise office?"

Seeing Xie Wei appearing in front of him with a tired face, Yu Guofeng was a little puzzled.

Usually, Xie Wei always studies and works strictly according to his own schedule. Even if his schedule is disrupted sometimes, he will quickly adjust after sorting out the work at hand.

This is the first time I see Xie Wei with a tired face.

"No."

Xie Wei shook his head, "It's about the development of the school-enterprise office."

"As for the market economy, I think only the Ministry of Commerce, where some people who often deal with international trading companies, understand it... Currently, our export ratio is not high, so there is still time to learn."

Yu Guofeng comforted Xie Wei.

Xie Wei did not explain, or rather, he simply did not know how to explain.

In an era when basic supporting facilities are not up to par and even talents cannot be recruited from the talent market, let alone high-end talents found through headhunting companies, there is always too much for one person to worry about.

"Should we speed up the progress of our microcomputer project?"

Yu Guofeng changed the subject.

The calculator has been successful. According to its current functions, it is simply used for calculations and does not require much improvement or design, unless technology develops and the original electronic components are replaced with more advanced and lower-cost ones.

"Let's just stick to the current progress."

"???"

Yu Guofeng looked at Xie Wei in confusion.

The functionality of microcomputers and calculators has been improved exponentially. The calculator was initially developed to provide training for the team. The calculator has already received a large number of orders and the profits are considerable. Why don’t they increase investment in research in this area?
"Most of the profits belong to the school..."

Knowing what Yu Guofeng was thinking, Xie Wei could only explain with a wry smile.

"What? How could the principal do this! Even if he helped with the sales, he couldn't let the school-enterprise office have no profit at all! The R&D funds were invested by the school-enterprise office, and the production factory was built with a loan from the school-enterprise office..."

After hearing this, Yu Guofeng felt like the sky was falling.

Although he didn't understand why Xie Wei gave up most of the profits, he didn't blame Xie Wei, "No, I have to go find him!"

Immediately, Yu Guofeng went to the principal's office.

"Why are you doing this?"

At night, Du Guowang looked at Xie Wei in confusion, his brows knitted together, "Millions of profits, all given to the school, but the school-enterprise office has no money, how can we carry out the subsequent projects?"

He specifically called Xie Wei home.

Wang Zheng was busy during the day and couldn't persuade Xie Wei, nor could he understand what Xie Wei said. Anyway, he knew that he couldn't give all the profits of millions or even tens of millions to the school.

I found Du Guowang, hoping that Du Guowang could persuade Xie Wei to change his mind.

"Because of the battery's capacity?"

Liang Hongbin's brows were also knitted together.

Xie Wei had met with him alone before because the current dry batteries stored too little electricity. Even with the single-function calculator developed by the school, which used two No. 7 dry batteries, the maximum battery life was less than a week.

It is used more frequently, but each time it only lasts about two days.

no way.

This is the case with current battery technology.

The dry batteries developed by the school have much higher energy storage capacity than the dry batteries on the market. However, compared with the ones Xie Wei mentioned, even if used frequently, two No. 7 dry batteries are needed to ensure that the calculator can maintain a battery life of more than one month under high-frequency use. The gap is too big.

"The battery is just one aspect, and it's even negligible compared to the functionality of our calculators."

Xie Wei shook his head.

These days, the performance of various accessories is almost negligible compared to their functions.

For people coming from the future, if we really want to talk about endurance, the calculators currently developed by schools are undoubtedly garbage in Xie Wei's eyes.

That can’t be counted, right?
"Why on earth?"

Du Guowang was a little angry, and his tone became unnatural and unpleasant.

"Director Yu bought a calculator from abroad before, but it's not as powerful as ours, and even its computing power is not as strong as ours..."

Xie Wei knew that Du Guowang was really thinking about him.

There is no need to explain.

"What does your pricing have to do with foreign calculators?"

Du Guowang didn't understand.

According to Wang Zheng, the functions of calculators in China are currently quite extensive and are urgently needed by various units.

Not only can it speed up the progress of scientific research, it can even enable many projects that require large amounts of computing to move forward even though they previously did not have access to supercomputer computing power.

Now Xie Wei said that international calculators...

What a bunch of nonsense.

“It matters a lot.”

Xie Wei took a deep breath. If possible, he would not do that.

"Huitong's calculator was developed in 72. So far, after seven years of continuous improvement, no one knows the extent of their calculator's functions..."

"???"

Du Guowang narrowed his eyes.

This made Xie Wei himself feel that such an explanation was not convincing.

"In fact, what we need to do is not only to consider developing the domestic market, but also to be prepared to fight with international giants. They have strong financial strength and technical foundation, what do we have? The only advantage is cost! They want to use the domestic market as a basis and use the money they earn in our country to suppress us, that's a dream!"

When Xie Wei said this, his expression turned serious.

For him, the best time to block international giants is when they first enter the domestic market.

Once you miss it, it's hard to get another chance.

They rely on the profits earned from around the world to carry out capital operations, which is simply beyond the reach of the current weak and frail school-enterprise offices.

"The reason why the price is so low is to quickly expand the domestic market. This not only makes international competitors find that the profits are not as huge as they imagined, but also sets rules for them: it is impossible to use technology to blackmail the entire domestic market."

Xie Wei's attitude suddenly became serious.

It's not that he has a grudge against money.

If Yu Guofeng had not told him that Huitong's calculators were preparing to enter the domestic market, he would not have adopted such a pricing strategy.

In marketing, pricing strategy plays a large role.

"What does this have to do with you giving the profits to the school? Xie Wei, I think price wars are not real market competition. There is always some..."

Du Guowang couldn't say anything more.

He was aware of the price war at Hongguang Machinery Factory.

In the end, the market was ruined and no one benefited.

No, consumers benefit! "What we need is to reduce costs quickly! Currently, the cost of both chips and LCDs is too high. With such a huge order, even if we lose a few million in the early stage, what does it matter?"

Xie Wei looked disdainful.

When it comes to capital, he is considered a pioneer compared to the international giants of today.

Thirty years later, only those who have experienced it know how serious the internal circulation of the domestic market is.

At the beginning, the inward-looking companies and enterprises felt that international markets were more competitive. In order to survive domestically, they had to reduce costs as much as possible in order to survive.

The simplest example is that many machinery OEM factories, when accepting orders, will even offer processing prices lower than the cost price.

Losing money?

It's impossible to lose money.

The processing of mechanical parts will produce some waste.

For many OEM factories, their profit comes from the waste generated during the processing. Selling it makes a profit!

Under the propaganda of public intellectuals, everything abroad is strong.

As a result, these factories, which could barely survive the crazy internal competition, found that after their products entered the international market, they could not find a single competitor that could compete with them, apart from the so-called brand effect.

Just like in history, the Huns were driven away, and the remaining forces arrived in Europe and directly became the Scourge of God!

how to explain?

"Director Du, what we need is the production capacity established by large-scale production and the rapidly increasing demand for various supporting industries. Only in this case will some capable units take the initiative to come to us to provide supporting services, further reducing costs..."

Xie Wei explained again.

"So, the CNC system also faces this problem?"

Du Guowang's brows were twisted into a "川" shape, and his eyes were fixed on Xie Wei.

"It's different. CNC systems are divided into low, medium and high-end according to their accuracy. At the beginning, without any foundation, it is definitely impossible for us to enter the high-end market..."

Xie Wei's words were very unpleasant.

Even though Du Guowang knew that what he said was true.

"Internationally, high-precision CNC machine tools are considered strategic equipment and are absolutely prohibited by COCOM to us..."

"so what?"

Du Guowang was not convinced.

"The whole country knows that our technology is backward and our industrial base is weak. Even if we tell the market users that our products are similar to the more advanced ones internationally, will anyone believe it?"

Xie Wei raised his eyebrows.

Du Guowang fell silent.

Wang Zheng, who was standing by, was also dumbfounded at this moment.

He never imagined that this matter would involve such a wide range of issues and even affect the CNC system.

"The CNC system is known as the core component of strategic equipment, mainly because it can quickly and cheaply produce various small batches and single products... Such production is mainly used for various samples... It is not so obvious in other fields, what about the military industry?"

"..."

At this point, Du Guowang and his companions were completely dumbfounded.

There is no way to find any excuse to refute Xie Wei's statement!
The CNC system is just the control part.

With the addition of ordinary machining machine tools, it is completely different.

The domestic industrial base originated from the Soviet Union. When large-scale production is carried out, a production line is often specially designed and produced based on the products being produced.

For mass production, the cost would be ridiculously low.

But what about before entering mass production?

The production of various single pieces and small batches is different.

Handmade production?

The efficiency is low, the workers’ technical requirements are high, and the quality cannot be guaranteed!

That cost is simply unacceptable.

"The reason why the country is carrying out reform and opening up is not only to introduce advanced technology and processes from abroad so that we can quickly narrow the gap with the international advanced level, but also to enable us to quickly reduce costs..."

Xie Wei directly used some common parts of fighter jets as examples.

Especially when using special-shaped parts on aircraft, without CNC machine tools, it is impossible to ensure that all processed parts remain consistent, thus losing interchangeability.

In peacetime, the parts of the J-8 fighter jets are not interchangeable, that's it.

Even after the successful development of the J-7, the troops were reluctant to accept it because manual production could not ensure the consistency of the precision of various components.

"When international giants come in, we can't compete with them in terms of capital and technology. The only thing we have is labor!"

Xie Wei emphasized again.

"..."

Neither Du Guowang nor Liang Hongbin said anything else.

Until Xie Wei left.

"Wang Zheng, you have had a lot of contact with Xie Wei, what do you think?"

Du Guowang asked Wang Zheng.

I have a shitty opinion!
Wang Zheng really wanted to say this, but until now, he was still confused: Didn’t he go to Du Guowang just to persuade Xie Wei to get some funds from the principal to fill the hole in the School-Enterprise Office?

result……

"Xie Wei's considerations are more thorough than ours. He used to be a technician at Hongguang Machinery Factory, and he developed his own products and opened up the market..."

In desperation, Wang Zheng could only talk about Xie Wei's experience at Hongguang Factory.

"The price war between Hongguang Factory and several other companies over antimony pots and pressure cookers is quite brutal!"

Liang Hongbin sighed.

"But Hongguang Factory still has profits, just not as much..."

Du Guowang disagreed with Liang Hongbin's statement, "Their main source of profit is rice cookers...Now calculators are a bit like the antimony pots and pressure cookers of Hongguang Factory..."

Du Guowang was dumbfounded by what he said inadvertently.

After thinking about it carefully, I found that the strategy Xie Wei adopted on the calculator was exactly the same as the price war of Hongguang Factory!
The antimony pots and pressure cookers produced by Hongguang Factory were all priced high at the beginning.

Once there are market competitors, just lower the price by 50%...

The key point is that under such circumstances, the products produced by Hongguang Factory are still profitable.

"Can it be understood that Xie Wei has been setting a trap for international competitors from the beginning? The prices seem very high now. For the production factories, if they cannot quickly reduce costs, the more they produce, the greater the losses they will suffer... If they can still make a profit at the current prices he has set, international products will come in..."

Liang Hongbin's eyes suddenly widened!

Yes!

That's the possibility.

Otherwise, there is no way to explain why Xie Wei did this.

"Is he planning to compete with international giants? Our technical strength cannot be compared with the international level, and in terms of funding..."

Suddenly, Du Guowang was stunned.

It’s so annoying.

(End of this chapter)