After the meeting, Michael returned to Dell's headquarters.
At this time, Dell is also sorting out some of the problems and shortcomings that have arisen in its competition in the global market in the past few years, and trying to find ways to reform them.
Because Dell knows it very well. As there are more and more competitors in the global PC industry. Dell must play to its own strengths to stand out in such fierce competition.
Now Microsoft, Intel and AMD have reached long-term cooperation with Dell for their own platforms. This is Dell's confidence.
In particular, Microsoft has promised that within the next three years, Dell's products will be free when using Windows XP systems, which will greatly reduce Dell's costs.
Under this premise, Dell also feels that the market must undergo thorough reforms in order to gain a firm foothold in the entire PC industry.
After all, it is still too difficult to stand out simply by relying on Changtian Technology's hardware products.
One is unreliable and not accepted by American capital. The second is that Changtian Technology has no intention of sincerely cooperating with itself. It has given a large number of products and markets to Shenship.
Dell analyzed the reasons for its sluggish sales and found that the current price at Dell's sales end is too expensive.
The main factor causing this is that Dell invests a lot of costs in third-party sellers, so the price reflected in the hands of consumers will also be quite expensive.
But in fact, the money Dell makes from selling a computer is not too much. Most of the money is made by channel dealers.
Michael has already carried out reforms in some cities in the United States. All computers are directly operated by Dell instead of being handed over to third-party channels.
In this way, channel costs can be greatly reduced and the price can be improved.
Since then, Dell has been very advantageous in terms of price, not only lower than IBM and other brands, but also much lower than Lianxiang from Xiaguo, which is famous for its low prices.
Michael decided to promote this direct sales model globally, including Europe and China.
Two major events occurred in the PC industry in June 2002.
The first thing is that Dell changed its global sales system, from agent and franchisee sales to direct sales. The global sales price of all series of Dell computers has been reduced by more than 20%.
Overnight, Dell became synonymous with cost-effectiveness and became the world's most cost-effective PC manufacturer.
The second thing is also related to Dell. Dell has fully embraced Microsoft's Windows XP system in the European market. Dell's latest PC will not be equipped with any Changtian Technology hardware equipment, and will be equipped with the genuine Windows XP system.
At the same time, Dell will stop purchasing carbon crystal memory and carbon crystal hard drives from Changtian Technology, and will not continue to purchase motherboards from Angda.
In the Xiaguo market, Dell began to make crazy efforts. Because it adopted a direct sales model and eliminated the cost of the Windows
In less than a week, sales at Dell's directly-operated stores have been extremely hot. Relevant industry insiders have made a simple assessment. According to Dell's sales growth rate, it is very likely that it will surpass Lianxiang and become Xia Guo's brand in one fell swoop this year. Sales leader.
Michael was also surprised by the effect of the reform.
He did not expect that what consumers care about is not the performance of the computer but the price.
As long as your computer is cheap enough, even if your performance is a little different than other brands or is on par with other brands, consumers will definitely choose you.
Dell's sudden effort caught PC manufacturers around the world off guard, especially Xia Guo's Lianxiang, Shenchuan and other manufacturers.
In order to expand its market as quickly as possible, Lianxiang transferred all sales channels to third-party sellers.
In order to allow sellers to be more active in helping Lianxiang sell computers and expand the market, Lianxiang has made huge profit concessions to these sellers. Therefore, despite the high selling price of Lianxiang's computers, in fact, the profit allocated to Lianxiang is no more than that of other sellers. How high is the brand?
Dell's move really caught Lian Xiang off guard.
At the same time, Xiaguo consumers have also tasted the benefits. Not only are the computers cheaper, but they can also use the genuine Windows XP system.
Regarding this new system, Xia Guo's consumers reacted to the genuine fragrance.
At this moment, Chen Xiao, Wang Xiang and others are negotiating equity with Wu Jun in Shenzhen City.
Everyone also learned the above news immediately.
Angda's boss Li Da couldn't sit still at first and immediately called Chen Xiao.
Currently, Changtian Technology is Angda's major shareholder. According to the ownership structure and company structure, Li Da can also be regarded as Chen Xiao's subordinate.
When encountering such a major emergency, Li Da would definitely report it to Chen Xiao as soon as possible.
"Mr. Chen, I just received the news that Dell canceled a 50 million motherboard order. What happened?"
Li Da was very anxious. After all, 50 million was not a small number for Angda as a whole, and Angda's plan for this year included Dell's purchase budget.
Therefore, Angda has done preliminary work and invested heavily in both raw material procurement and factory capacity expansion.
Now Dell suddenly canceled the order, which caught Angda off guard.
Chen Xiao said: “Dell not only canceled the order from Angda, but also canceled the order from Changtian Technology. Their current computer equipment no longer uses Changtian Technology’s hardware products, and of course they will not use Angda’s motherboards. "
"Ah?!" Li Da was stunned. He had no idea that the cooperation agreement reached by Shuangfa only at the end of last year, and Dell broke the contract only half a year later, "What is going on?"
Chen Xiao said lightly: "It is because it cannot withstand the pressure of genuine systems in Europe and has no choice but to compromise with Windows XP."
"The European market is different from the Xiaguo market. In the European market, although Dell can also use pirated Windows XP systems through technical processing, the European legal department does not allow multinational companies like Dell to do so."
"If Dell dares to use a pirated system in Europe, he may be fined and bankrupt."
There is another reason for Dell's sudden rise, which Chen Xiao did not tell Li Da.
From around 2001 to 2003, due to poor global sales, Dell conducted a system analysis and changed its sales system. A complete sales system reform was carried out.
Simply put aside third-party operators and dealers, and instead use the direct sales model.
In this way, the reduced sales cost of Dell is reflected in the price of the terminal, which is extremely friendly to consumers.
Chen Xiao remembers that around 2002, Dell ranked first in sales in the global market, and also surpassed Lianxiang to become the first in the Xiaguo market.
This trend was not reversed until Lianxiang acquired IBM's personal PC department in 2004.
I didn't expect to be reborn. Dell rejected Changtian Technology's hardware and carried out sales reforms. These two things happened at the same time by chance, which was funny.
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