Who would still start a business seriously after being reborn?

Chapter 618 The Glorious Era!

Inside the Microsoft Asia Group headquarters, Waters looked at the subsidy budget report submitted by Huaxia Shangding, which was already severely over budget, and the extremely abnormal user data report. His face was so gloomy it could drip water.

He originally hoped to quickly defeat QQ and seize the market with huge subsidies, but he did not expect that the other party would not only not confront him head-on, but would instead use such despicable means to distort his subsidy strategy into a farce of everyone taking advantage of the system.

The large amount of money invested did not translate into real user stickiness and market share; instead, it felt like filling a bottomless pit.

Won the battle, but lost the war?
A ridiculous thought flashed through Waters' mind, and he also felt a deep sense of powerlessness.

He discovered that his opponent's playing style was completely unconventional, cunning and ruthless, adept at exploiting various off-field factors and human weaknesses.

His and Yang Yuanqing's meticulously planned campus pioneer program and subsidy war were met with a strong counterattack from Honor S1, and their plans were also disrupted by Momo Group's support for Huawei. Now, their own backyard is on fire, with subsidy funds being consumed by uncontrollable "wool party" members.

This planned blitzkrieg turned into a chaotic and costly mess.

However, they absolutely cannot stop now; they can only try to further optimize this subsidy issue.

If we stop now, we will be wasting our time.

Meanwhile, in the computer lab of Jingzhou University City, Li Qiang and his roommate had just finished an intense World of Warcraft dungeon run.

My roommate stretched and glanced at the Honor S1 poster at the entrance of the computer lab. He casually said, "Qiangzi, do you think we should consider buying an Honor S1? With that Huawei internet card, we can play games in the dorm without having to come all the time to fight for a spot."

Li Qiang stroked his chin, looked at his character's flashy equipment on the screen, and then thought about the tempting stranger's ecological points. He nodded and said, "That makes sense... but we still have to see if Lianxiang and the others will lower their prices next. Anyway, the more aggressively they fight, the more advantageous it is for us, right?"

My roommate chuckled and said, "That's right! When two birds fight, a third party benefits! Let them fight it out, as long as we get the benefits!"

Inside the internet cafe, the clatter of keyboards and the cacophony of voices continued as always.

MSN's subsidy ads are still up on the wall, but more and more people are starting to discuss how to buy a laptop that can play games smoothly at a more affordable price.

Whether it's Lianxiang or Rongyao.

As long as it's good value for money, that's fine.

Autumn is deepening in Jingzhou, but the atmosphere in the conference room at the headquarters of Lianxiang Group is even colder than the autumn chill.

They felt like they were about to freeze to death.

The marketing director pushed a freshly printed weekly sales report in front of Yang Yuanqing, his fingers turning slightly white from the pressure.

“Mr. Yang, these are the sales figures for the Honor S1 after half a month on the market. Although we worked overnight to bring the high-end version of Whisper to 3000 units, but…” the director’s voice was hoarse, with a hint of disbelief and fear, as he said, “Our sales… are still falling!”

The numbers in the report are still glaring.

Lianxiang Whisper series saw a weekly sales drop of over 41% across national channels, despite prices being almost equal.

The notes below are even more crucial: according to channel feedback, most consumers still choose the Honor S1 after inquiring about the price.

The reasons given were a three-year warranty and points on Momo's campus network.

Points earned on Renren.com can be used for many activities on the Renren.com platform. Points cannot be obtained through top-ups; they can only be used for purchases at designated merchants on Renren.com or for participating in certain point-earning activities, such as sending gifts within the campus, providing online Q&A for students in Hope Schools, or donating unwanted clothing to Hope Schools.

This became Honor's killer feature.

Yang Yuanqing stared at the note, feeling a throbbing pain in her temples.

He joined the price war, even at the cost of sacrificing most of his profits.

But his opponent didn't get bogged down in the price issue at all; instead, they deftly moved to another dimension.

"Mr. Yang, there are actually advantages to selling less; selling more means more losses..." The product manager swallowed back his words halfway through.

Yang Yuanqing slammed his fist on the table, making the teacup bounce, and gritted his teeth, saying, "Now it seems that those damn points are their real killer move."

He forced himself to calm down, his gaze sweeping over the panicked faces in the conference room, and asked, "What about our advantages? What about our brand? Is Lianxiang's twenty years of reputation really inferior to that of a newly emerging Honor Computer?"

“Mr. Yang…” the channel manager said with difficulty, “The brand does have advantages, but today’s college students and young users value practical things more, and Honor’s on-the-ground promotion is too aggressive.”

He pulled up several photos, which were sent back by offline staff from computer malls in various places.

In the photos, Honor's promoters not only handed out flyers, but also brought real devices and gave a live demonstration right next to Lianxiang's counter.

“They not only went to the computer mall, but also focused on the area near our specialty store.”

"They have many advantages over us now. We offer a one-year warranty, while they offer a three-year warranty. And the points they give out are very useful. I found out that their points can be used for discounts at Momo Internet Cafes, redeemed for snacks and drinks, and even used as cash on campus. That's like getting the computer for several hundred yuan cheaper!"

There was dead silence in the conference room.

From the words of the channel manager, everyone could tell how serious the problem was; their price advantage of 200 yuan had vanished.

Moreover, they would never dare to change the warranty.

The Honor S1 computer has just been launched, and whether it lasts a year or three, it's fine, since sales were never high to begin with.

But they can't change it. They sell millions of computers every year, and if they changed the warranty period, it would cause chaos instantly.

Too big to be proper.

Now they can clearly feel it.

Moreover, they are still competing with traditional pricing and mindset, while their competitors have integrated services, ecosystem, and channels into a new value system to counter them.

Just then, Yang Yuanqing's assistant rushed in, looking serious, and said, "Mr. Yang, Honor Computer is holding a press conference."

"A press conference?" Yang Yuanqing and other senior executives' expressions changed slightly.

Yang Yuanqing raised an eyebrow, and her assistant immediately turned on the LCD computer in the conference room.

He quickly switched the channel to Handong TV, and sure enough, on the program, Li Xiang was passionately saying, "At the same time, we have jointly launched the Glory Back-to-School Season event with our virtual item trading platform, Momo Games, and Momo Industrial Software Center! During the event, purchasing a Glory S1 laptop will, in addition to the original points, come with over a dozen extra benefits, including a World of Warcraft exclusive mount, a Primordial War Chronicles enhancement pack, educational software, Momo series photo editing software, and more, bringing your learning, entertainment, and life into the Glory era..."

Looking at Li Xiang's confident smile on the screen, Yang Yuanqing frowned even more deeply.

Although the other party did not lower the price, they used ecological benefits to directly cut the purchase threshold to the ankle and raised the product value to the ceiling.

How is this played?
Momo Group has made remarkable progress in industrial software development over the past year or two. Since obtaining a license from IBM, Momo Group has developed more than twenty Momo-version photo editing software, office software, and industrial application software, including six for personal computers. "This is bad..." a director muttered to himself, his face ashen.

At this moment, Lianxiang's crisis truly turned into a raging flood.

Price defenses have completely failed, and brand advantages are no match for tangible benefits and convenience.

Once Honor Computer launches a full-scale offensive, their stock price will inevitably plummet.

Yang Yuanqing sat there, lost in thought.

He originally thought that by joining forces with Huawei and China Unicom, he could effectively contain Momo Group.

He never expected that Momo Group would beat them all up.

Seemingly seeing their current predicament, Huawei and China Unicom's attitude towards Momo Group has become much more subtle.

Even Huawei executives were flirting and tagging each other in their blogs with Momo Group executives.

He thought he had caught up with the price and could hold his ground by relying on brand value, but he didn't expect that the other side's battlefield had already shifted.

He didn't lose a price war, but a war about the future of business models.

Yang Yuanqing pressed his aching temples for a while, then slowly looked at Yin Weihua, the group's vice president and head of public and government affairs, who was sitting to his right, and said, "Mr. Yin, can we use our government connections to put pressure on Momo Group? Say that they are disrupting the market."

Yin Weihua sighed and said, "I've already tried, and I was even given a warning by Vice President Liu Guiwu."

Liu Guiwu...

Yang Yuanqing felt even more powerless.

Liu Guiwu is currently the vice president of the China Information Industry Association and the general manager of Huaxia Software Group, making him a leader in their relevant government department.

"Does the chairman have any instructions?" Yang Yuanqing asked.

Yin Weihua was the chairman's confidant; he understood the chairman's intentions best.

Yin Weihua slowly said, "The chairman said he's getting old and it's inconvenient for him to continue managing things, so he asked us to convene a board meeting as soon as possible."

"Okay." Yang Yuanqing understood what Yin Weihua meant.

A board meeting means the former chairman is stepping down.

For the past six months or so, the former chairman has been working on him to persuade him to take on the role of chairman of the group.

Now that things have come to this point, even if he doesn't want to go, he has no choice but to bite the bullet and go.

However, taking on the role of chairman at this critical juncture made him feel somewhat uncomfortable.

The next day, the board meeting was held as scheduled. The process was simple: everyone voted, and then Yang Yuanqing went on stage to give an inaugural speech.

Because of the current situation, this inauguration ceremony, which should have been a grand and spectacular affair, didn't even have a single reporter invited.

The group's official website published an announcement that the position of chairman of Lianxiang Group had changed.

Having just assumed the chairmanship, Yang Yuanqing couldn't wait to take a car to the Microsoft Asia United Group headquarters.

Although they are all located in Zhongguancun, they are separated by several parks.

After getting out of the car, Yang Yuanqing straightened his suit, trying to make himself look less like someone seeking help.

As soon as I entered the lobby, Waters greeted me warmly.

"Congratulations, Yang! This is what everyone wants." Waters shook Yang Yuanqing's hand and said sincerely, "Lianxiang needs a leader with your courage to lead it out of its temporary predicament."

Yang Yuanqing forced a smile and said, "Thank you, Mr. Waters, but as you know, Glory's offensive has completely broken away from the traditional competitive model. We need the support of our friends."

As Waters accompanied Yang Yuanqing into the elevator, he smiled and said, "Of course, Microsoft has always been Lianxiang's most steadfast partner. We are also deeply concerned about Momo Group's actions. This kind of behavior that disregards industry rules and disrupts the ecological balance benefits no one."

He changed the subject, revealing a regretful expression of helplessness, and said, "But, Yang, as you know, Microsoft is currently facing some... um... some very unique challenges."

"It's probably not appropriate for us to intervene with direct funds or resources at this stage, as this could trigger a stronger counterattack from Momo Group."

Yang Yuanqing's heart sank immediately; he sensed Waters's attempt to evade responsibility.

Waters seemed to see through his disappointment. He stepped out of the elevator, led Yang Yuanqing into his office, and said in a sincere manner, "However, I have a very good suggestion."

"The one who tied the knot must untie it. The root of this problem lies with Momo Group. Perhaps you need a frank conversation. Mr. Qian Buqun of IBM and Mr. Chen Yongzheng of Microsoft could perhaps act as mediators. They could invite Momo Group to sit down and talk, calling for healthy competition and jointly maintaining market order. What do you think? If Momo Group refuses, it would be tantamount to them completely breaking ties with us and IBM, who are essentially their backers."

“Thank you for your suggestion, Mr. Waters.” Yang Yuanqing considered for a moment, then said in a slightly hoarse voice, “I will consider it carefully.”

Although the negotiations lasted a long time, no substantial progress was made.

Yang Yuanqing could sense that Waters was also in a bit of a mess.

As I left the Microsoft building, an autumn rain fell, and the temperature dropped further.

Yang Yuanqing sat in the car in silence for a long time before finally dialing the number of Qian Buqun, president of IBM China.

Lianxiang and IBM were as close as family, and Qian Buqun readily agreed to his request.

Qian Buqun's straightforwardness made Yang Yuanqing feel a little better.

These are true allies.

Momo Group almost joined the IBM camp. If Momo Group had joined at that time, then Lianxiang, Huawei and Momo would have been in the same camp.

Unfortunately, IBM, considering the potential crisis, chose to handle the situation quietly, leaving Momo Group out of the picture.

Two days later, at the entrance of Jingzhou Momo Technology Industrial Park.

A black Audi and a silver Mercedes arrived at the Momo Technology Industrial Park almost simultaneously.

(End of this chapter)