Who would still start a business seriously after being reborn?

Chapter 589 Wintel Alliance
Steve surveyed the executives in the conference room, his gaze sharp as a knife: "But now is not the time to dwell on past responsibilities. The issue now is that we must stop them immediately. We cannot afford to lose the Asian market; it is the heart of our global growth and the center of our future strategy."

“President Steve,” the public relations manager began, “we are still deeply embroiled in a media storm, with the EU and the US Department of Justice watching us closely. If we take overly aggressive measures against Momo Group at this time, it could easily give them leverage and trigger more severe antitrust investigations and sanctions.”

"If Momo Group were just an ordinary Chinese company, even if they were the number one in Asia, we could mess with them as we pleased. But you have to understand that Momo Group is backed by Enze Capital, which can influence EU decision-making. The fact that they chose to launch a large-scale attack at this time is probably because they calculated that we wouldn't dare to retaliate for the time being."

The public relations manager's words were precisely what made Microsoft's top management feel most powerless and angry.

The mighty Microsoft, constrained by public opinion and regulation, could only watch helplessly as its competitors expanded rampantly on its own turf, unable to mount an effective counterattack immediately.

This is so frustrating.

“So, we need someone who can break the deadlock.” Steve tapped his fingers on the table, his gaze sweeping over the executives present before finally settling on a personnel file: “We need someone who understands the complexities of the Asian market, possesses both a tough hand and flexible strategies, and isn’t afraid to get into trouble.”

Silence fell again in the meeting room, but this time it was a silence of weighing and scrutiny.

Soon, a name was mentioned, followed by a second, a third...

A heated discussion and power struggle over the selection of a new president for Microsoft's Asia-Pacific region quickly unfolded in this oppressive conference room.

The Asia-Pacific region is too important; what they need is not a maintainer of the status quo, but a true Captain America.

A ruthless figure who can navigate geopolitics, business competition, public opinion pressure, and shady tactics, and ultimately help Microsoft regain control of the Asian market.

This person must be decisive enough, and even a little unconventional, since their opponents do not appear to be benevolent.

Ultimately, after a heated debate and exchange of interests, a preliminary consensus was reached.

Steve said in a deep voice, "Based on the candidates we submitted, start the evaluation process as soon as possible to determine the new president. I want him to be in place within two weeks and come up with a targeted countermeasure plan within a month. Tell our lobbying team and public relations department that we must do everything we can to quell the negative impact of the Pandora Project within a month and clear the way for our new Asia Pacific president's actions."

"Yes!"

The day after the meeting, although Microsoft headquarters was temporarily unable to launch a large-scale direct counterattack due to public pressure and the search for a new leader, this did not mean they would sit idly by.

At Steve's direction, a lean lobbying team was quickly assembled, including a senior Microsoft marketing strategy director, a government relations consultant, and an expert familiar with the Asia-Pacific supply chain.

Their mission objective was very clear: to conduct urgent consultations at Dell's headquarters in Pebble Rock, Texas, HP's headquarters in California, and Lianxiang's headquarters in Yanjing.

Conference room at Dell headquarters in Pebble City, Texas.

Dell's core executives looked at the PowerPoint presentation given by the Microsoft representative, which clearly listed the configuration, price, sales data, and architecture diagram of the Honor computer's Moc-OS system and Pangu emulator.

"Gentlemen, the situation is very clear." Microsoft's chief lobbyist, a vice president named Richard Burns, said in a somber tone: "Honor computers, or rather the Momo Group behind them, have an ultimate goal that is not just to sell hardware. They are building a completely closed, de-Windows-based ecosystem."

He pointed to the architecture diagram and said, "Pangu Emulator is their core function. Users can run almost all Windows applications and games on Moc-OS through Pangu Emulator. The experience will not be much different. Once users choose Honor computers because of this low entry price and get used to the Moc-OS environment, will they go back to the Wintel platform? Our alliance is being eroded."

“That’s right, their prices are disruptive and unreasonable!” a Dell supply chain executive couldn’t help but interject. “$400? How can they possibly make a profit? This is absolutely dumping; they’re using capital to crush market rules.”

“That’s the scariest part.” Burns continued, lowering his voice and speaking suggestively: “According to our investigation, many of the core components of Glory computers come from some little-known small European factories, and behind these factories is the same shadow capital, namely the investment of Enze Capital.”

"Do you know what this means? It means that Momo Group may be using profits from other businesses, or money earned from the capital market, to subsidize hardware sales. Its purpose is not to make a profit at all, but to seize the entry point as quickly as possible and destroy the existing industrial ecosystem."

He looked around at the Dell executives present and said, "Today they sell for $400, and tomorrow they could even sell for $300 if they want. Their goal is not to compete with you, but to completely replace you. When their system installations reach a certain scale and their application ecosystem is fully established, your traditional Wintel alliance partners will completely lose their space to survive. The market will be dominated by this new model that uses low prices as a guise but is actually more closed."

The conference room was completely silent, save for the faint hum of the air conditioner.

Dell executives all looked grim.

They had already noticed the meteoric rise of Honor computers and had sounded the alarm in the market, but after such a systematic analysis by the Microsoft representative, that sense of crisis became even more concrete and frightening.

"Richard, what are your plans at Microsoft?" Dell CEO Michael Dell asked in a deep voice.

“First, we must unite and file investigation requests with the trade and anti-dumping agencies of various countries,” Burns responded immediately. “We need to prove that Honor computers are priced below reasonable cost and are being dumped. Second, we need to jointly set up barriers on technical standards and compatibility, such as a joint statement that certain next-generation hardware features or security standards may not be perfectly supported on non-native Windows systems, or even have compatibility guaranteed.”

He paused, then said meaningfully, "More importantly, we need to unite. Microsoft is willing to offer more favorable terms to its closest partners in future Windows licensing, joint marketing, and technical support. But the prerequisite is that we must work together to resist this disruptive force that doesn't play by the rules."

Michael Dell considered for a moment and said, "We need to have another meeting to discuss this."

Burns was just a lobbyist, and he had said all he needed to say. Dell sending Michael Dell to receive him was already a great honor for Microsoft, so he couldn't say anything more.

Although Microsoft and Dell are 24/7 partners, Dell is still an independent, dominant conglomerate with a market capitalization of $100 billion.

A similar scene was playing out at the Lianxiang headquarters in Yanjing City.

Yang Yuanqing, the head of Lianxiang, and his senior management team listened to the presentation by the Microsoft representative with equally serious expressions.

Compared to Dell, Lianxiang, being based in China, has a more direct and complex understanding of the rise of Momo Group.

They felt the immense competitive pressure from Honor computers, and were also deeply wary of the methods and ambitions behind them. "Mr. Yang, colleagues," the Microsoft representative was replaced by Chen Yongzheng, President of Microsoft China, who was more familiar with the Chinese market: "Momo Group has now shown its fangs. They are digging into the foundation of all traditional PC manufacturers. With their almost free system and disruptive hardware prices, they are directly shaking the business models on which all companies depend for survival."

A senior executive at Lianxiang added with concern, "Moreover, their refurbished machines are flooding the market through gray channels, severely impacting second- and third-tier cities and even rural markets, which were originally our core business. Many small and medium-sized enterprises and internet cafe owners who originally planned to buy Lianxiang Yangtian or Qitian desktop computers have now been attracted by Honor or Feixiang computers."

"Not only that, their internet cafe business is also having a huge impact on our market!" another Lianxiang executive said in a deep voice.

Since the rapid development of the internet cafe industry in China, Lianxiang Computer's sales have been declining.

Yang Yuanqing was silent for a moment before slowly saying, "Their methods are indeed questionable, especially the gray channels and the potential for dumping. But..."

He then changed the subject, saying, "We must also admit that they do have unique insights into system optimization and user experience, especially in optimization for specific applications. The technical approach of the Pangu simulator is worth studying."

Yang Yuanqing chatted with Chen Yongzheng for a while, only saying that she would think about it, and then saw Chen Yongzheng off.

Yang Yuanqing had met with Cheng Yi multiple times and had personally witnessed the battle between Momo Group and Samsung.

To be honest, he didn't have the courage to challenge Momo Group.

Moreover, they just acquired all of IBM's personal computer business for $17.5 billion last month, and are currently in dire financial straits, making them utterly incapable of fighting back.

However, the executives of Kelianxiang Group were unaware of these things and instead engaged in a heated discussion.

One faction believes that it is necessary to join forces with Microsoft to resolutely crack down on Momo Group, and use legal and policy means to nip Honor computers in the bud, so as to maintain the Wintel alliance and the existing market order.

The other side is more cautious, believing that it is necessary to hedge its bets. On the one hand, it is necessary to maintain communication with Microsoft to deal with Honor's unfair competition; on the other hand, it is also necessary to secretly study the Moc-os system and similar technologies, and even consider whether there may be any cooperation or compatibility in the future, so as not to be left behind by the wave of technological change.

Some people worry that over-reliance on Microsoft could cause Lianxiang Group to lose its autonomy in future competition.

Similar heated debates are also taking place at the headquarters of major global PC manufacturers such as HP and Acer.

Microsoft's lobbying was like throwing a boulder into a seemingly calm lake, creating ripples.

The traditional Wintel alliance has undergone subtle changes due to the emergence of Honor computers as a common threat.

Panic, anger, vigilance, scheming... all sorts of emotions intertwined, focusing attention on Momo Group.

If Momo Group were part of the Wintel alliance, they wouldn't be so worried, but Momo Group is an outlier.

The once outlier Apple has been acquired by Microsoft, and now the world is a unified and harmonious place.

The sudden appearance of Momo Group is clearly intended to disrupt things.

What's most infuriating is that they sell it for such a low price.

Right now, although these companies are somewhat resentful, none of them want to be the first to try something new.

After all, Samsung, the first company to try something new, is still mired in difficulties and can't extricate itself.

While Microsoft was lobbying everywhere to try to form an anti-Momo alliance, Cheng Yi's plans at Momo Group headquarters in Jingzhou did not slow down due to the initial market victory, but instead moved forward at an even faster pace.

He knew that the booming hardware sales had only opened up a market gap. To truly gain a foothold, especially to withstand the impending full-scale counterattack from the Wintel alliance, he had to build a deeper foundation and a more solid alliance.

"Accusations of computer dumping will come soon, and tariffs in various countries will definitely increase because of our sales. So, relying solely on price wars won't get us far, and it will easily give others ammunition against us." Cheng Yi said, banging on the table at the group's senior strategic meeting, "We must achieve large-scale and localized production as soon as possible to reduce costs and shut them up. More importantly, we must deeply bind local interests to ours."

"For localized production overseas, we need to cooperate deeply with local governments. We can forgo all profits; all I care about now is market share!" Cheng Yi said in a deep voice. "Our goal for 2005 is to capture 5% of the operating system market!"

Upon hearing this goal, many people present who were unfamiliar with operating systems scoffed at it, while people like Yu Sen looked horrified.

5%?
Is this even possible?

Keep in mind that Apple's global market share is only 2.3%.

"Before we start localizing production overseas, we need to practice in China first."

Cheng Yi's gaze fell on two key provinces on the map: Guangdong and Shandong.

Guangdong Province, a bridgehead for China's economic reform, boasts a strong manufacturing base and a complete electronics industry cluster.

Shandong Province is a heavy industrial base with a large population and huge market potential, but it is also facing pressure to transform and upgrade its industries.

"Li Xiang, Huang Wenrong," Cheng Yi said directly, "You two will lead the formation of project teams and go to Shenxia City in Guangdong Province and Quancheng City in Shandong Province respectively to discuss the construction of the Glory Computer Industrial Park project through investment promotion."

(End of this chapter)