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Chapter 695: A new war is coming

March 25, 2006.

Wanwan Hsinchu City Qiang International Headquarters.

Synnex International Group is the largest 5C professional distributor in the Asia-Pacific region, providing integrated services for the high-tech industry supply chain.

Its operating bases cover China, Taiwan, Hong Kong, Macao, Australia, Shemale and other countries and regions, and it also invests in countries such as Lighthouse, Canada, Bullfighting and Asan. Its operating bases cover 29 countries and 181 cities around the world, forming an Asia-Pacific

A global channel layout with the main axis and the Americas and India as the two wings.

At the same time, Synnex Digital is also one of the agents for Intel and AMD.

When Du Shuwu turned on his computer, he saw emails sent to him by Intel and AMD.

Needless to say, the content of the email is that Intel and AMD will cancel the low-end market and the two companies will no longer supply low-end products.

Du Shuwu quickly picked up his cell phone and dialed Yang Xu's cell phone.

For low-end products in the market, this means that they will lose at least 30% of their profits.

Because low-end products have always been the best-selling products in China.

"Du~du~du~" Yang Xu answered the phone after three rings in a row.

"Mr. Yang, I just received an email from you. I want to ask what's going on. Why do you suddenly stop supplying low-end products?"

"Mr. Du, you should know that Ziguang Computer has launched a computer with self-developed chips, right?"

"I know, but what does this have to do with it?"

"Do you know the price of Ziguang Computer?"

"Know."

"Do you think the low-end DIY market can still be done?"

"Mr. Yang, although Ziguang computers are very cheap, their production capacity cannot keep up. Most users have no choice at all. There are still certain opportunities in the low-end DIY market."

"Mr. Du, the low production capacity is only a temporary problem. As long as Ziguang and others are willing, the production capacity will be able to keep up. Kirin has a total of twenty-four lithography machines.

As far as I know, each photolithography machine produces 250,000 chips per day.

In other words, if Kirin is fully engaged in production, its production capacity can reach 6 million units a day.

In 2005, China's desktop computer sales reached 23 million units.

Even if computer sales increase this year, the number will not exceed 40 million units, and it will only take a week to produce 40 million CPUs.

After all this calculation, do you think the low-end market is still competitive?”

In fact, the 23 million units were caused by the butterfly effect caused by the emergence of Cao Mang. If it had not been for the emergence of Cao Mang, the national sales in 2005 would have been only 14 million units.

Du Shuwu didn't know how to answer Yang Xu's soul torture.

This is indeed how the number is calculated.

“The DIY market exploits low-end products at every level and completely loses competitiveness. Whether we or AMD want to compete for the low-end market, the only way is to cut out all the middlemen and directly give them to complete machine suppliers.

In this way, our low-end products are sufficiently competitive.

If Mr. Du wants to take advantage of the low-end market, I suggest you transform into a complete machine supplier."

After hearing Yang Xu's words, Du Shuwu felt like he was enlightened.

Why not become a complete machine supplier if Synnex has the channels? Complete machine suppliers can still make more profits. The only problem is that they need a lot of funds to support it.

At worst, it would be better to raise another round of financing.

Of course, this idea is not so good, but the market competitiveness of the whole machine is also very high. Not to mention several domestic computer companies in China, we also have to face several computer companies in Bayan.

But this is the only way out for Synnex International, unless they give up the DIY low-end market business.

"I know what to do, thank you Mr. Yang."

Du Shuwu immediately held an emergency meeting after hanging up the phone.

...

Half an hour later.

Heads of various departments came to the conference room one after another.

But Du Shuwu hadn't arrived yet, and everyone started talking about it.

"Does anyone know why the chairman is so anxious to call us here?"

"I don't know, maybe something happened to the company."

"If something happened to the company, it would have spread throughout the company. It should be that the company's business needs to be adjusted."

"Whatever it is, the boss arranges for us to do it."

At this time, Du Shuwu slowly walked into the conference room. After Du Shuwu walked into the conference room, he put his hands on the table.

The reason why Du Shuwu came so late was because he had just finished a phone call with the general manager of AMD's Asia Pacific region.

"This morning I received emails from Intel and AMD. These two companies have canceled the supply of low-end DIY products.

In other words, in the future, DIY products will only have mid-to-high-end products and not low-end products," said Du Shuwu.

"Ah, why don't we make low-end products without Intel?"

"If Intel doesn't do it, forget it. Even AMD doesn't do it. What's going on?"

"If there are no low-end products, the company's revenue will definitely drop a lot. What should we do?"

At this time, Zhao Zhengmin from the logistics department murmured in a low voice: "Mr. Du came to us to lay off employees, right?"

Without such low-end market business, the company's revenue will inevitably fall, and profits will also fall accordingly.

In such a situation, every company would choose to lay off employees to save costs.

But they all thought wrong.

Du Shuwu does not plan to lay off employees, and he also wants to add employees because he already has a plan.

"This incident is both a crisis and an opportunity. After careful consideration, I plan to enter the complete machine market." Du Shuwu said.

Just now Wang Xu reminded him that the whole machine market has great potential.

Of course, apart from this, another sentence from Yang Xu made him make this decision.

This sentence is "Only by cutting out all middlemen and directly supplying them to complete machine suppliers, our low-end products will be sufficiently competitive."

Du Shuwu decided to change the original agency model to a direct sales model.

Synnex is a direct supplier to retailers.

After cutting off all the intermediate links, Synnex will be more competitive than other competitors.

He even wanted Lianqiang to operate directly.

If Lianqiang does direct sales, it may be able to obtain higher profits.

Everyone was in an uproar when they heard Du Shuwu's words.

Because Du Shuwu’s decision will completely change the original business model.

"You Yongcheng, I want your marketing department to set up marketing teams for each country and region within a month.

Are there any questions?" Du Shuwu asked.

"No problem, Mr. Du." You Yongcheng nodded.

One month of preparation time is quite sufficient.

"Zhao Zhengmin, I want your logistics department to cooperate with You Yongcheng to build a corresponding after-sales team within two months.

Are there any questions?" Du Shuwu asked.

"Deng Mingyong, your marketing department needs to make a marketing plan as soon as possible. You only have one month to cause this matter.

Are there any questions?" Du Shuwu looked at the other party and asked.

"No problem."

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