All the Directors were gathered in a small meeting room for their monthly meeting. But this time, there is one chair missing, and no Qi Li energy drinks on the table.
After Feng Yu was kicked out of the board of directors, Paul Allen had been in a good mood, other than his trip to China. For almost one month after returning from China, he doesn’t have any appetite and even felt like puking when he saw the ants on the sidewalks.
“This meeting today is to discuss our software sales issues. Our sales for the second quarter had increased, but cannot be compared to last year’s increase, especially for our Office software…”
The Directors looked at each other and did not say anything. Paul Allen sneered. “Steve, the Asian market is affected the most. You are the President of the Asia market, shouldn’t you say something?”
Ballmer gave Paul Allen a side glance. “What do you want me to say? I had suggested to carry on our cooperation with Feng Yu, or Lenovo Group, and you are the one who wanted to separate our Office software and operating system. Now, our Office software’s sales are not doing well, and you are saying this is my problem?”
Steve Ballmer does not like Paul Allen. He knows he is not as good as Paul Allen in software development. Still, even Bill Gates seeks his advice on the company’s operation. He is so much better at management than Paul Allen, who had been suffering losses for all his investments.
“You are the President for the Asia market, and also the company’s Vice President for product sales. Our sales are going down, and it’s your responsibility. Even if I had suggested to spilled up the sales of our Office software and operating system, it’s your responsibility to improve the sales. It’s your problem!” Paul Allen raised his voice.
“Since you think I am not good at sales, how about you take over me? I remember when you are in charge of sales, we had negative growth.” Ballmer retorted.
After Feng Yu was kicked out of the board, Paul Allen starts to target Ballmer. But Ballmer is not a pushover!
Furthermore, Ballmer knows Bill Gates is supportive of him.
Bill Gates is now regretting his rash decision. He should have waited until Microsoft set up their sales distribution channels in China before falling out with Feng Yu.
Because of Bill Gate’s decision, Microsoft had suffered, and Bill Gates was surprised that Feng Yu is not concerned about Microsoft’s profits.
Ballmer had told Bill Gates the reason for the lower sales in China.
Lenovo Group has a subsidiary, Lenovo Kingsoft, which is also a software company. This company’s main product is antivirus and office software.
Microsoft was caught off guard when Lenovo Kingsoft introduced WPS97. This software is fully compatible with its Office software and Windows. But the price for WPS97 is only a fifth of Microsoft Office.
More importantly, WPS97 has more functions, and the Chinese version is much better than Microsoft Office from the users’ feedbacks.
This software had the support of Lenovo had made no one in China ask about Microsoft Office.
With something better and cheaper, who would spend money on something more expensive and inferior.
Also, Lenovo Kingsoft’s software is sold in a package. For example, Kingsoft Dictionary, Kingsoft Anti-Virus, and WPS97 are sold together.
Not only are the Chinese interested in these bundle sales. Even the Americans will also be interested.
It’s just like when Microsoft had bundled their Operating System and Office together, their sales are doing well. This is because the consumers will feel they had gotten a good deal when they purchase the bundle.
At first, Bill Gates had the same thinking as Paul Allen. He thought they had gained a foothold in China, as their operating systems are selling well. The Chinese should have gotten used to Microsoft Windows, and it should be the same as their Office software.
But Microsoft did not expect WPS97 is much better and cheaper than their Office.
WPS97 also provides free upgrades and have good aftersales service. All the cities and most counties in China have Lenovo aftersales offices. With such a strong network, Lenovo becomes the market leader in China, and no other brands can compete with them.
Lenovo had become the market leader for PC and software in China now.
Other than WPS97, Lenovo Kingsoft also developed a drawing software, supermarket system, internet café system, Office OA system, etc.
Bill Gates wondered if Ballmer is right. After Feng Yu left, Microsoft will fail in the Chinese market.
Paul Allen was still arguing with Ballmer, and the other Directors remained quiet. It’s not that they don’t want to stop the fight, but other than Bill Gates, no one in Microsoft can stop Paul Allen.
“Enough. Paul, Steve, stop arguing. We must think of a solution to improve our sales and regain our market share.” Bill Gates said with a frown.
“Since Paul thinks he is better, let him tell us what we should do. I would like to learn from someone who did not get anything after going to China to check on our Gbox product. Hmph!” Ballmer snickered.
“Advertise! We will advertise in China to let more people know our products are the best!” Paul Allen said.
“Where are you going to get the advertising budget? We do not have a budget set aside for this, and we had made a comparison with Lenovo Kingsoft. WPS97 has more features than our Office and is much cheaper than us. If you are the consumer, will you use our products?” Ballmer retorted.
What stupid idea is this? They might as well lower their Office’s retail price than spending money on advertising. It might be more effective.
Microsoft is a big brand, but in China, Lenovo Kingsoft is also a big brand. Also, Lenovo Kingsoft’s products are exported to East Europe, and Microsoft does not have any market.
Bill Gates looked at the rest of the Directors. “Do you all have any suggestions?”
Everyone kept quiet, and Ballmer slowly says. “The only solution is to speed up our Office software development and make our product better than them. This way, we can be competitive. Even if we lower our prices now, it is useless.”
Paul Allen did not say anything. He had never expected Microsoft’s products to be lagging behind a Chinese product. How can Microsoft lag others in their strongest field?
