King of Technology: A Fresh Start in 1983

At this moment, Zhang Wei was in his office compiling the latest sales data for each region…

Zhao Xiaobo walked in and asked, "Do you have the latest statistics on the inventory levels of distributors at all levels?"

Zhang Wei replied, "Yes, I'll print out a copy and send it to you right away."

Zhao Xiaobo received the inventory data, looked it over carefully, and said with a smile, "Xiao Zhang, the inventory levels of these distributors are generally quite low!"

"Is it because it's the end of the year, and you're pushing your distributors to clear out all the stock?"

"Mr. Zhao, by the end of the year, users must spend all the funds they have budgeted for the year, otherwise it will affect next year's budget, so their purchasing power is naturally much greater than at other times."

"There's another important reason why this year's inventory is so low..."

"After discussing with General Manager Chen, we decided to stop pushing inventory onto distributors at this time, clear the inventory as soon as possible to recover funds, and prepare for the sale of the new [Xuanyuan 486] model after the New Year."

"Once the New Year is over, the latest 486DX-50 model of [Xuanyuan] will be released, and the distributors will stock up in large quantities."

Zhao Xiaobo put down the form and asked in a low voice, "Hey, do you think we can take advantage of this gap before the [Xuanyuan 486] goes on sale and quickly sell a batch of goods?"

Zhang Wei looked at Zhao Xiaobo with some confusion: "Mr. Zhao, what do you mean?"

"Someone wants to release a batch of 386s, not many, about six or seven hundred units, at an incredibly low price, unbelievably low."

"I'm considering taking this batch of goods and distributing them to agents at various levels to sell, so they can move in and out quickly."

"We can make two thousand yuan from each unit, that's over a million yuan in net profit. What do you think?"

Which brand? Is it foreign or domestic?

"AST".

Zhang Wei was taken aback for a moment, then pondered and said, "The key is that this time difference is difficult to grasp."

"If the distributors can't get their money back, it will affect the supply of the new [Xuanyuan 486] model and disrupt the entire sales plan."

"Mr. Zhao, why don't you discuss this with Mr. Chen?"

Zhao Xiaobo was clearly unconvinced: "This is just routine business, not very large in scale, and it doesn't involve the company's strategic direction. We don't need to talk to President Chen, right? The two of us can decide."

"But it involves nearly 20 million in funds, which is not a small amount."

"It won't cost that much, just over ten million. Besides, our company probably won't need to provide the funding; we'll just be using Tiangong's distribution channels."

"Funding is one aspect, but the company's current sales strategy is to wait for the new [Xuanyuan 486] model and strive for an immediate success."

Zhang Wei looked troubled. "At this critical juncture, bringing in a batch of AST386 will inevitably affect the sales of the new [Xuanyuan 486] model, which is probably not appropriate."

Seeing that Zhang Wei was unwilling to budge, Zhao Xiaobo had no choice but to agree to go with him to discuss the matter with Chen Jianghe.

Upon hearing this, Chen Jianghe replied decisively, "No! Absolutely not!"

"Mr. Chen, you're becoming increasingly arbitrary these days, and you never listen to different opinions."

Zhao Xiaobo was somewhat dissatisfied, "Seizing the opportunity to make a quick buck isn't exactly going against the grain, is it?"

"Mr. Zhao, let me explain. First of all, the [Xuanyuan] 486DX-50 is about to be launched."

"The reason why Zhang Wei and I have recently tightened shipments to channels is to get them to clear out their old models as soon as possible and prepare for the arrival of new models."

"At this critical juncture, if you feed them a batch of AST, wouldn't our sales strategy be ruined?"

"Secondly, both we and the distributors have limited funds. Rather than investing in AST, it's better to invest in the new model of [Xuanyuan]."

"Finally, the large number of users we and our distributors have carefully cultivated are also waiting for these new models."

"If we let them buy AST at a crucial moment just because it's cheap, wouldn't all our hard work in accumulating customers have been for nothing?"

"Where can we find another batch of users in the short term when the [Xuanyuan 486] is ready to be shipped?"

"What should I do if I'm stuck with [Xuanyuan 486] and it's affecting my cash flow?"

"Mr. Chen, it's all about selling machines, so what difference does it make what kind of machines you sell?"

"If you're going to make money anyway, isn't it better to earn it this month than next month?"

"You have to be flexible in business; you can't be too dogmatic."

Chen Jianghe laughed: "President Zhao, for the sake of a mere million yuan in immediate profit, don't you care about the market share of the new model?"

"The successful launch of our new model will also help us launch subsequent new products in the future."

"Besides bringing in a quick buck, what else can this batch of AST bring?"

"Isn't quick money money money? In my opinion, it's money we should be making even more of. If we don't make it, we'll be wasting our time."

"Can't you see the potential risks?"

Chen Jianghe immediately became serious. "Every time a new model is replaced by a new one, it is the most sensitive time for the market, and there are many unknowns."

"Don't you ever think about why that batch of AST386 was so cheap? There's no such thing as a free lunch; it might be a hot potato!"

"The 486DX-50's performance is much better than the 386. Do you believe that the 386 might suddenly become obsolete?"

"Your current plan is to make two thousand per unit, but in the end, you might lose five thousand per unit and still not be able to sell them!"

"You're exaggerating. This risk is manageable, which is why we need to get in and out quickly before the 486DX-50 model comes out."

"Can you guarantee that the distributors can sell all the goods before the 486 comes out?"

"If we can't sell them, how can the distributor guarantee to pay us? How can they guarantee there will be funds flowing into [Xuanyuan 486]?"

"I've reached an agreement with the distributor, and they guarantee to pay us on time. It will definitely not delay the delivery of [Xuanyuan 486]."

"Okay! Even if the distributors pay us on time, can you guarantee they'll sell all their AST386 units before the [Xuanyuan 486] arrives?"

"If we can't sell them, where will the distributors get the money to buy [Xuanyuan 486] from us?"

"If the distributor doesn't have the money to stock the [Xuanyuan 486], won't this batch of machines be stuck with us?"

"Therefore, this requires our decisiveness and Zhang Wei's execution ability."

"I have confidence in Zhang Wei's execution ability. He can definitely get the distributor to clean up the 386 before the [Xuanyuan 486] arrives, right, Xiao Zhang?"

After Zhao Xiaobo finished speaking, he looked at Zhang Wei.

Zhang Wei was at a loss for words.

Chen Jianghe's concerns are valid.

In their pursuit of quick profits, they disrupted the overall sales plan for the new model, leaving them in a very passive position regarding its later market promotion.

Secondly, Zhao Xiaobo made it very clear that his role as Zhang Wei was to execute.

Given this situation, it is certainly not appropriate for the executor to participate in the decision-making process, especially when the two bosses are locked in a fierce battle of wills.

Upon hearing Zhao Xiaobo's words, Chen Jianghe's face immediately darkened, and he said, "I've already made my decision! This deal is absolutely unacceptable; there's no need for further discussion!"

After he finished speaking, he glanced at Zhang Wei again.

As Zhao Xiaobo walked out of Chen Jianghe's room, he couldn't help but sigh and shake his head: "He's becoming more and more autocratic."

...