Chapter 2153 Priority of Purchase Orders

I didn't even have time to eat lunch at noon, so Zhou Buqi returned to China. I simply had a Japanese-style seafood feast on the plane, and it tasted pretty good.

I’m not used to eating Japanese food. It’s not as satisfying as French steak or Spanish ham. The seafood is probably the most suitable for my taste.

Back in the capital, Zhou Buqi went to Changyou headquarters.

Changyou wants to negotiate a large contract with Huawei worth more than 1 billion, mainly to purchase some communication equipment and hardware equipment from Huawei.

This kind of big business needs someone to handle it.

Ren Yuxin is still in Japan handling the follow-up work of the game business and cannot come back. Lao Zhang has returned to his hometown and is preparing to celebrate the New Year. Zhou Buqi could only return to China in a hurry to take over this task.

Zhou Buqi has had a good relationship with Huawei over the years and has had a lot of business dealings with him. Even in terms of his conduct style, he is following the example of Mr. Ren, who has an extremely low-key style.

For example, Zhou Buqi and Mr. Ren are fully qualified to be elected as the Economic Figure of the Year selected by CCTV.

In the past year, Huawei was the only private company in China ranked among the Fortune 500, let alone Zhou Buqi, and it was well-known at home and abroad.

However, they both declined.

Don't show your face and don't participate in such activities.

In the past few years, in China, except for people in the industry, no one knows who Mr. Ren is, and even the company Huawei has not been heard of.

It will be different in a few years. Huawei's popularity has spread all over the country. This is actually not Huawei's original intention, nor is it CEO Ren's original intention.

Huawei is a technology company that is down-to-earth in research and development.

The research and development process is very hard.

Especially research and development work in the high-tech field is very confidential.

If you want to keep it secret, you must keep a low profile.

The more low-key the better, it is best not to let people know what you are doing.

Therefore, there is a very absurd phenomenon in the field of R\u0026D. Those slogans are shouted loudly every day, and various officials, academicians, scholars, and experts are invited to take the stand, and various academic seminars are held. Scientific research projects that arouse the cheers of the whole people must be It’s not that great, there are so many scammers and it’s a mess.

Once a serious company gets excited, is fooled by those huge formations, and really rushes in with enthusiasm... and escapes with a loss of 50 billion, that is the best result.

If there are high-value and high-tech scientific research results, the research and development process is very lonely, and the outside world has no knowledge. There are no flowers, no applause, no coveting and prying eyes from competitors, and you are willing to be lonely...

Huawei has grown rapidly in the past two decades, from a trading agency to a technology giant with a complete set of technology property rights. This is actually the meaning of CEO Ren's low-key strategy.

After a few years, times have changed, and it won't work anymore.

In the new era, Huawei must meet the needs of national policies and cannot keep a low profile even if it wants to. Under the new strategy, it is necessary to negate the Lenovo model and launch a national enterprise in the field of hardware R\u0026D with the symbolic significance of the new strategy. After many searches... Huawei is the only one, so it has no choice but to stand up.

Once you don't keep a low profile, a lot of chaos is inevitable.

When he arrived at Changyou, Zhou Buqi met Mr. Xu, Huawei's rotating chairman. The two had met seven or eight times before and were relatively familiar with each other. They shook hands in a friendly manner.

This Mr. Xu has a technical background, a heavy accent, and poor communication skills.

However, both parties are just leaders.

Is the final decision maker.

Specific negotiations are done by our more professional team.

After a simple meeting, Zhou Buqi went to the office first and received materials from the two vice presidents, mainly purchasing some switches, routers and storage equipment, with a total value of more than 1.2 billion yuan.

Zheng Jian's vice president in charge of technology procurement privately suggested that the profit margin of this product is very high, especially since Huawei has relatively complete intellectual property rights and pays relatively little patent fees to external parties.

This means that out of the 1.2 billion turnover, the gross profit may reach 600 million to 700 million.

Zhou Buqi was a little surprised, "So many? He Yang told me that the gross profit of Lenovo's machines is difficult to exceed 20%."

Zheng Jiandao: "Lenovo doesn't have much technical content. They are all assembled machines. All spare parts are purchased from outside, and the cost is higher. Many of Huawei's spare parts are produced by its own OEM, and the cost is lower. In terms of gross profit margin From a global perspective, Huawei is already number one in the world, much higher than foreign companies like Cisco, Ericsson, and Dell."

"Cisco?"

Zhou Buqi raised his eyebrows.

Cisco is the leader in the world's communications industry, followed by Ericsson and Nokia.

In the early years when Huawei was just starting out, it was always sued by these companies. It's different now. Huawei has surpassed it in many areas, such as switches. It's hard to say that the quality and technical content of Huawei's switches will surpass Cisco's, but it should be possible to surpass Ericsson and Nokia. They are high-quality and low-priced.

Zheng Jian said with a smile: "Cisco is of course very powerful, much better than Huawei in all aspects. However, Cisco is an American company, and its labor costs are too high, so its gross profit margin has dropped."

Zhou Buqi nodded, "There are also R\u0026D funds."

Zheng Jiandao: "Yes, this is also the key to Huawei's rapid rise. The investment in R\u0026D in the field of communication technology is too high, and small companies cannot afford it. This is Huawei's huge advantage. Cisco, Ericsson and others have also invested US$1 billion in R\u0026D funds. The company may only be able to do one big project. With the advantage of domestic labor costs, US$1 billion may be able to start research on five major projects. As long as Huawei sticks to its current strategy and does scientific research in a low-key manner while avoiding all outside eyes, it will be boring. If you want to make a fortune, let alone Ericsson or Nokia, it will be a matter of time before you surpass Cisco."

"Entrepreneurs may not have the final say in a company." Zhou Buqi sighed, "If you have the final say, you will be under pressure, and if not, you will be infamous. If you don't have the final say, there will be problems in the development of the company... Or it could be said that Lao Zhang is still smart, this is the smart man."

"Um?"

Zheng Jian raised his eyebrows and was slightly startled.

Surprised in my heart.

Who is Lao Zhang?

Couldn't it be Boss Zhang who was repeatedly teased by Boss Zhou in the company?

Zhou Buqi waved his hand and asked, "If this batch of equipment is purchased from Cisco, how much will it cost?"

Zheng Jian held out three fingers and said, "300 million, US dollars."

"Twice as expensive as Huawei?"

"right."

"It's such a good deal, what price are you talking about?" Zhou Buqi couldn't help but bargain with others for 200 million, "Isn't the purpose of running a company just to make money? If we don't let others make money, how can we have long-term cooperation in the future?"

Zheng Jian coughed and said, "If we work hard, I think we can conclude a deal for 1 billion yuan."

"It's not necessary!" Zhou Buqi waved his hand, "If someone makes more money, it means they have a higher standard. Just because someone makes more money, you can't lower the price indefinitely and follow the market conditions. Changyou's philosophy is the same as that of Ziweixing, and it treats cooperation Partners, we cannot suffer losses ourselves, nor should we let the other party suffer losses."

Zheng Jian has seen the big boss' style, but he doesn't really agree with it.

I feel like I should have a good chat with Ren Yuxin later.

If something like this happens again in the future, don’t ask the big boss to come forward. We've got it done here, we'll just make a report and let you know later.

Ren Yuxin is the CEO, this is his scope of authority, and he should make the decision. Zhou Buqi is the chairman and should not be involved in such specific arrangements.

"One more thing is Changyou's overseas market." Zheng Jian is only responsible for procurement in the domestic market and has little control over overseas business. "Mr. Xu may want a larger order."

Zhou Buqi stood up and said, "Let's go meet him."

An order of 1.2 billion yuan is nothing to Huawei, at least it is not the turn of a rotating chairman like Mr. Xu to come forward. When he came over, he was actually more concerned about Changyou’s overseas orders.

Overseas orders are great.

Not only Changyou's own business, Changyou has also acquired and invested in so many game companies, so there are actually opportunities.

Zhou Buqi met Mr. Xu and said frankly after shaking hands: "Of course it is our duty to support the development of domestic enterprises. However, my usual practice is that I only have priority and no absolute rights. Does Mr. Xu know that?"

Of course Mr. Xu knows.

Huawei and Zhou Buqi have not cooperated once or twice. There have been many contacts from Ziweixing to Bajixing, Jingtao, Ziweixing Digital Media, and Changyou.

They know Boss Zhou’s principles very well.

Priority refers to the companies of "Ziwei Galaxy". When purchasing related equipment, domestic companies can have priority.

For example, when purchasing office computers, there are three mainstream brands in the world: HP, Dell and Lenovo.

If a certain department does not have special requirements, then Lenovo will have priority and the company will purchase Lenovo computers.

However, if the department president conducts internal research and discovers that everyone dislikes Lenovo computers and unanimously wants to use HP computers for work, then the company will still respect the department's choice and purchase HP computers.

Office equipment is for employees.

The company cannot arbitrarily require employees to use a certain device. If employees have urgent requirements, employees will still be the first to make them feel more comfortable while working.

The same principle applies to Huawei's products, which have priority but no absolute rights.

Mr. Xu frowned, "What you said doesn't count?"

Zhou Buqi smiled and said: "Of course I said so, but I'm not the one using those equipment, and I can't impose my will on the employees, right? What? There's something wrong with the overseas order?"

Mr. Xu nodded, "The materials have been sent to me. The total value of Changyou's overseas purchase orders this time has reached 550 million U.S. dollars, while Huawei only received 100 million U.S. dollars."

Zhou Buqi asked: "What is the model? Is it bidding?"

Mr. Xu sighed, "It would be great if there was a bidding process. Huawei's products have the best quality and the lowest price. If it were a public bidding process, Huawei would definitely win the biggest order."

Zhou Buqi shook his head, "I'm really not sure."

Mr. Xu was not too anxious and said "Hmm", "I know you won't pay attention to such trivial matters, so I'd like to remind you. I'll ask you later to see what's going on. It doesn't matter whether you use Huawei products or not. The market is full of multiple choices. But there is no public bidding for the US$550 million order, so be careful about internal and external interest relationships. Changyou’s overseas business has just started, so you must be cautious.”

Zhou Buqi said in a deep voice: "Definitely!"