Chapter 873 – Finding another way
Norio Ohga was sitting in his office, smoking a cigar. Sony had gone through a rough patch but had recovered now. It is the same as Norio Ohga. He had been suspended for a while but was rehired by Sony as the President.
Who else can do a better job than Norio Ohga? During Norio Ohga’s suspension, some shareholders and higher management fought over the position of President, and Chairman Akio Morita stopped the infighting by getting Norio Ohga back.
Sony’s PS game consoles are selling well, and although the Walkman and CD players are on the decline, Sony had found another way to make money. Sony is currently pushing their MD players and had made some progress. Also, this product had won AIWA!
Sony’s PCs, digital camera, mobile phones, and other electronic products were doing better and Columbia Pictures’ debt was almost cleared. Next year, Sony has hopes to see high profits and who would dare to criticize Norio Ohga again?
The progress of all these products made Norio Ohga happy, but what made him happier was hearing no US local distributors are willing to sell Wind and Rain mobile phones in the US!
Norio Ohga was overjoyed when he heard this information.
Hahaha… Serve you, right!
Sony had many competitors, and some of its competitors used underhand methods against them. But there are only a few people whom Sony and Norio Ohga hates. One of them is China’s Feng Yu!
If not for this person, AIWA will still be under Sony, and Sony will always be the leader in the portable music player market. Sony’s profits will not drop if AIWA had not competed with them, causing their sales and profits to fall.
Also, Feng Yu had made Sony suffer massive losses in the DVD player competition, and China’s Lenovo, which Feng Yu had shares in it, caused Sony’s PC sales to come to a halt.
Sony’s development over the past two years was slow and the main reason is Feng Yu!
Now, Feng Yu wants to enter the mobile phone market and had hit a wall. You really think your Wind and Rain brand is invincible? When it comes to branding, how can you all compete with Sony?
Furthermore, we have been manufacturing mobile phones for years and look at the number of phone models. You all only have one model of phone, and you dare to launch it in the market?
You all can sell your phones in China is because the Chinese are ignorant and protective of their own domestic companies! Try selling your phones in Japan. If you can sell more than 10,000 units, I will immediately resign!
You all still want to enter the US market? You all can’t even walk out of China!
We, Sony, have factories all over the world, and not only we have the most advanced technology and branding, but we can also still control our production cost. These are what Wind and Rain Electronics lack.
We will not only get back the top position of the portable music player market, but we will also suppress your mobile phones!
……
“Mr. Silva, nice to meet you.” Feng Yu smiled and extended his hand for a handshake. This old man, with white hair, is Philips CEO for the North America Region.
“Mr. Feng, nice to meet you too. I always wanted to meet you, but I was overwhelmed with work.”
Silva had wanted to meet Feng Yu because Philips and Wind and Rain Electronics are partners, and Feng Yu is a Microsoft director, who is also a super tycoon that controls the whole Chinese market. But Silva didn’t have an excuse to meet Feng Yu.
Now, it’s different as Feng Yu was the one who invited him over.
“Mr. Silva, I had invited you over is to ask a favor from Philips.”
“We will do our best to help you.” Before coming here, Silva had received instructions from his headquarters to establish a good relationship with Feng Yu. Feng Yu is an important partner, and Wind and Rain’s patented technologies had helped Philips much.
“I heard that Philips have some factories in North America.”
“We have two big production plants and 3 small factories,” Silva replied. This is not a secret, and anyone can find out if they want.
“Can your factories spare some assembly lines to help us manufacture some electronic products?” Feng Yu asked.
Philips had helped Wind and Rain manufacture Super VCD players in the past, and currently, their factories in Europe are still doing it.
“Manufacturing products for you? Although our factories have lots of orders, we should be able to squeeze out some resources to help you. What are you going to manufacture?” Silva was hinting Feng Yu that Philips will be sacrificing a lot to help him.
“Mobile phones. We hope your factories can help us manufacture a batch of Wind and Rain brand of mobile phones. The quantity should be around 100,000 units. How much are you all charging?” Feng Yu asked.
“I need to discuss with the factories before I can tell you the cost. But I’m afraid our charges will not be cheap.” Silva replied.
“I understand. All I want is high-quality products and I have confidence in Philips factories. If possible, please help me pass a message to your headquarters that I would like Philips to help me manufacture a batch of phones in Europe.”
This was the most straightforward and cheapest solution Feng Yu can come up with. He had thought of getting some small electronic factories or less expensive options, but he was worried about the quality.
Also, some technologies in the mobile phone cannot be leaked to small factories. Although these technologies were not patented or the core technology of the phone, small factories do not have access to them, and it was not worthwhile to pass these technologies to them.
Don’t think there are no imitations in the US. The US is one of the countries that have the most imitations. How is it possible that all counterfeits are imported? In Feng Yu’s previous life, many of the counterfeit factories flourished because of orders from the US.
The country that has the most copyright and patent infringements is also the country that claims to have the most protection of copyright and patents. Every year, more than one company had been sued over patent issues in the US.
Due to these considerations, Feng Yu finally decided to get Philips to help him manufacture a batch of phones for the time being, while he acquires a factory in Canada. It will take a few months before the factory is ready for production.
Feng Yu had wanted to use the current model of mobile phone to set up the distribution channels in the US. He will not ask for a specialized counter, and being able to sell his phone in the mobile phone shops is sufficient.
Feng Yu is waiting for Wind and Rain to introduce new phone models as the new phones will have better technologies and designs than all the existing phones in the market. The production cost will also be lowered, and that’s the time to start an aggressive marketing campaign.
Feng Yu and Fu Guangzheng had looked into the mobile phone market and knew there will be no profits next year. But before the end of 1998, there will inevitably be returns and with new models, Wind and Rain phones will be accepted by the consumers.
Feng Yu had lunch with Silva before Silva left. He will get back to Feng Yu after he consulted his headquarters.
Feng Yu stood in front of his office windows. He wants to create an Electronic empire and make all the big companies in his previous life, bow before him!
“President! Look at this report. Wind and Rain Electronics had signed an agreement with Philips. Philips factories will help Wind and Rain Electronics manufacture a batch of mobile phones, and Wind and Rain phones will be entering the Western countries’ markets!”
“What? Why is a big company like Philips helping others to manufacture phones? Also, how are they going to distribute their phones? Are they using Philips’ distribution channels?!”
Norio Ohga frowned. Philips might not be good in the telecommunication industry, but with their help, Wind and Rain Mobile phones might quickly develop in the overseas market!
