Chapter 399 PC Chaos, Comprehensive Encirclement and Suppression

After the meeting, Michael returned to Dell's headquarters.

At this time, Dell is also sorting out some of the problems and disadvantages of its own competition in the global market in the past few years, and trying to reform it.

Because Dell's heart is very clear. With the increasing number of competitors in the global PC industry. Dell must play its own advantages to be able to stand out in such fierce competition.

Now Microsoft, Intel and AMD have reached a long-term cooperation with Dell for their own platform, which is the confidence of Dell.

In particular, Microsoft has promised that within the next three years, Dell's products will be free to use Windows XP systems, which will greatly reduce Dell's costs.

Under this premise, Dell also feels that the market must undergo a thorough reform in order to gain a firm foothold in the entire PC industry.

After all, it is still too difficult for hardware products that rely solely on Changtian Technology to stand out.

One is that it is unreliable and is not accepted by US capital, and the second is that Changtian Technology has no intention of sincerely cooperating with itself. It has given a large number of products and markets to Shenchuan.

After analyzing the reasons for its sluggish sales, Dell found that: the current price of Dell's sales side is too expensive is an important reason.

The main reason for this is that Dell puts a lot of cost into third-party sellers, so the price reflected in the hands of consumers will be quite expensive.

But in fact, the money that Dell makes by selling a computer is not too much, and most of the money is earned by the channel dealers.

Michael has carried out reforms in some cities in the United States, and all computers are directly operated by Dell rather than handed over to third-party distributors.

This can greatly reduce channel costs and strive for price advantages.

Since then, Dell has an advantage in price, not only lower than IBM and other brands, but also much lower than Lianxiang from Xiaguo, which is known for its low price.

Michael decided to promote this direct sales model all over the world, including Europe and Xiaguo.

Two big things happened in the PC industry in June 2002.

The first thing is that Dell has changed the global sales system, from agent and franchisee sales to direct sales, and the global sales price of all Dell series of computers has been reduced by more than 20%.

Overnight, Dell became synonymous with cost-effectiveness and became the most cost-effective PC manufacturer in the world.

The second thing is also related to Dell. Dell has fully embraced Microsoft's Windows XP system in the European market. Dell's latest PC will not be equipped with any Changtian Technology hardware equipment, and will be equipped with a genuine Windows XP system.

At the same time, Dell stopped buying carbon crystal memory and carbon crystal hard drives from Changtian Technology, and would not continue to buy motherboards from Angda.

In the Xiaguo market, Dell began to work frantically. Because it adopted a direct sales model and saved the cost of Windows XP, all models of PCs in the Xiaguo market began to cut prices by more than 20%.

In less than a week, the sales of Dell's directly-operated stores have been extremely hot. Some relevant industry insiders have made a simple assessment. According to Dell's sales growth rate, it is very likely that this year will surpass Lianxiang and become Xia Guo's. The king of sales.

Michael was also surprised by this effect after the reform.

He didn't think that what consumers care about is not the performance of the computer at all but the price.

As long as your computer is cheap enough, even if your performance is a little bit worse than other brands or comparable to other brands, consumers will definitely choose you.

Dell's sudden force caught the world's PC manufacturers by surprise, and Lianxiang was the first to know the news.

In order to expand its market as soon as possible, Lianxiang transferred all sales channels to third-party sellers.

In order to make the sellers more actively help Lianxiang sell computers to expand the market, Lianxiang has made huge profits to these sellers, so regardless of the high price of Lianxiang's computers, in fact, the profit allocated to Lianxiang is no more than that of others. How high is the brand.

And Dell's move really surprised Lianxiang.

At the same time, Xia Guo consumers also tasted the sweetness, not only the computer is cheap, but also can use the genuine Windows XP system.

For this kind of new system, Xia Guo's consumer reaction is - genuine genuine fragrance.

At this moment, Chen Xiao, Wang Xiang and others are negotiating equity with Wu Jun in Shenzhen.

Not yet aware of the above news.

But Angda was the first to hear the news because the order was cancelled!

Ang Du's boss, Li Da, couldn't sit still, and immediately called Chen Xiao.

At present, Changtian Technology is the major shareholder of Angda. According to the shareholding structure and company structure, Li Da is also a subordinate of Chen Xiao.

In the event of such a major emergency, Li Da must report to Chen Xiao as soon as possible.

"Mr. Chen, I just received the news that Dell canceled the motherboard order worth 50 million yuan. What is the situation?"

Li Da is very anxious, after all, 50 million is not a small number for the entire Angda, and Angda's plan this year is to include Dell's procurement budget.

Therefore, Angda has done preliminary work and a lot of investment in raw material procurement and factory expansion.

Now Dell suddenly cancels the order, which catches Angda by surprise.

Chen Xiao said: "Dell not only canceled the order from Angda, but also canceled the order from Changtian Technology. Their current computer equipment no longer uses the hardware products of Changtian Technology, and of course they do not need Angda's motherboard. "

Chen Xiao also just received a text message from the company a few minutes ago, and learned that Dell had canceled the order of Changtian Technology for unknown reasons.

"Ah?!" Li Da was stunned. He didn't expect the cooperation agreement that Shuangfa reached at the end of last year. Dell broke the contract after only half a year. "What is the situation?"

Chen Xiao downplayed the reason and said, "It's because it can't stand the pressure of the genuine system in Europe and has no choice but to compromise with Windows XP."

"The European market is different from the Xiaguo market. In the European market, although Dell can also handle pirated Windows XP systems through technology, European legal departments do not allow multinational companies like Dell to do so."

"If Dell dared to use pirated systems in Europe, he could be fined and bankrupt."

Chen Xiao remembers that around 2002, after the reform of Dell's sales system, Dell's sales in the global market ranked first, and it also surpassed Lianxiang in the Xiaguo market to become the first.

This trend was not reversed until Lianxiang bought IBM's personal PC division in 2004.

Did not expect after rebirth. Dell's refusal of Changtian Technology's hardware and sales reforms happened at the same time by chance, which is fun.