Chapter 2686: The Inescapable Connection
When managing a supply chain, you can’t hang yourself from a tree.
If you lose the right to choose, you will easily be at the mercy of others.
Therefore, when choosing a partner, try to have a backup plan as much as possible. If this supplier starts to raise prices, then go directly to the spare tire to get the goods.
Asda adopts this strategy in supply management of flash memory chips, with Samsung as the main supplier and Micron as the supplement. In comparison, Samsung's flash memory is better and is used in the Aster series of high-end machines, while Micron's flash memory is mainly used in Motorola's mid- to low-end machines.
One is a Korean company and the other is an American company, which must be separated.
Now, Hyundai’s OEM mobile phones have already established a large scale in South Korea and are the second largest mobile phone brand in South Korea. This is a bit troublesome...
In the field of mobile phones, Hyundai and Samsung are bitter rivals, and Hyundai and SK are partners.
The predecessor of SK Hynix is modern memory.
It would be fine if OEM mobile phones didn’t start to be made. Now that they have started to make them, it’s a bit unreasonable to still use Samsung’s flash memory. They should use Hynix’s flash memory!
This made Zhou Shaoning feel embarrassed.
In the design of mobile phones, there must be compatibility testing between the system and software and hardware. It is not just a matter of replacing Samsung chips with Hynix chips.
More importantly, the Aster series is a high-end model that can compete with Samsung's Galaxy series.
Flash memory is a very important indicator.
If it were replaced with a Hynix chip, it would probably fall behind in terms of performance.
This problem is really difficult.
However, if we do not accept modern conditions, the cooperation between the two parties may break down. This is a profit of hundreds of millions of dollars a year. How can we let it go easily?
If you accept their conditions, it will be complicated.
Zhou Buqi asked: "What did you think about it?"
Zhou Shaoning said: "We should negotiate with Hyundai first to see what the situation is. In the past two years, the cooperation between Hyundai and Asda has been very smooth, and it has helped Hyundai start its smartphone business. . I think they have no reason to put their own interests at risk for SK Group’s Hynix.”
Zhou Buqi thinks so, "We don't want our cooperation to break down, and they certainly don't want it either."
Zhou Shaoning said: "I think there may be some other factors. After meeting, we should communicate well with modern people to find the key to the problem."
Zhou Buqi asked: "What if the worst happens?"
Zhou Shaoning sighed, "We can't lose the Korean market. We might have to set up a separate stall specifically for the Korean market. This will increase our development, design and management costs, and the profit margin will drop by at least 30%."
Zhou Buqi said with a smile: "The most important thing is to keep the Korean market. If you want to put money from other people's pockets into your own pocket, it will never go well."
Zhou Shaoning said in a deep voice: "I'm afraid that Hyundai has other ideas."
"Um?"
"We are only responsible for manufacturing mobile phones. All sales channels in South Korea belong to Hyundai. Now OEM mobile phones are doing so well, and the threshold for mobile phone manufacturing is so low, and Hyundai's mobile phone business was once so strong... I'm afraid they think they are OK again.”
"No way?"
Zhou Buqi didn't believe that the Zheng family would be so stupid. It was not difficult to make a mobile phone, but it was not easy to make an excellent mobile phone that could be recognized by the market.
Especially in modern times where the family has a big business and many households.
Even when purchasing a flash memory, you have to specify the purchase of flash memory from Hynix.
It's impossible to make a good phone!
It’s not that Hynix doesn’t work, it’s that this kind of thinking doesn’t work.
Similar phenomena have been repeated too many times in the domestic IT industry.
With the best policies and the most resources, we just can’t create good products that can gain market recognition.
For example, computers, computer assembly has no technical content at all, and its blue-collar nature is much higher than its technological nature. But why couldn't those powerful companies in the early years succeed? Instead, it allowed Lenovo to catch up from behind?
For example, Founder was known as the largest technology company in China at the time and was very powerful. However, Founder was quickly eliminated by the market. A big factor was the lack of good supply chain management.
The best computer must be assembled with the best spare parts, but many companies come over with their own spare parts. How can you refuse? Who can refuse this?
In the end, it can only produce a bunch of products that have no competitiveness at all. No matter how good the resources are, no matter how much money is spent, it is useless.
Lenovo does not.
Mr. Liu didn't do that, he didn't listen to anyone, he treated Lenovo like a private enterprise, only looked at the market, and built an international supply chain system for Lenovo.
Only buy the best and most suitable, regardless of other factors. Although I offended many people, I actually got the company going.
The same goes for the mobile phone industry.
When Zhou Buqi first started his business, he did on-campus group buying and promoted a large number of "Panda mobile phones" and "Kejian mobile phones", which were also products like this. Even if he had a strong background, there was no chance of consumption if he didn't accept the credit.
Soon private enterprises came on board, and mobile phone companies such as Bird, Jinli, and Amoi took over the market. The early state-owned mobile phone manufacturers were basically finished. And then...it’s the era of copycat phones and smart phones.
Supply chain management is said to be simple, but in fact it is very complex.
The biggest obstacle is favors.
South Korea's mobile phone industry, except for Samsung, is not doing well. This is mainly due to this factor. They are all the same.
They are so patriotic.
They have to purchase electronic components from their own country. If it’s Samsung’s memory and Samsung’s flash memory, that’s it. They are indeed top-notch in the world and should be purchased.
But many things are not top-notch in the world, and it is very unreasonable to have to buy them blindly. Naturally, the products produced will not work and will be eliminated by the market.
Now, Hyundai is recovering thanks to Asda's OEM mobile phone strategy.
Then I thought about promoting business for the related households again.
This is very dangerous.
Hynix's flash memory is very good, not much worse than Samsung's flash memory.
However, once this is started... in the future, more supply chain systems may have to be adjusted for the OEM mobile phone business. This is the trouble that worries Zhou Shaoning the most.
