Chapter 288 Economy and Party Struggle (11) Jinghua Textile
Price war is a term that is both familiar and unfamiliar to Gao Pragmatic. It is familiar because he heard it too much in his previous life; it is unfamiliar because he heard it too little in this life.
In the previous life, the various price wars in the Red Dynasty were extremely fierce. As a consumer, you may be secretly happy, but if you are a relevant party involved, it may be thrilling.
However, as a township cadre under the jurisdiction of a third- and fourth-tier city at that time, the impact of price wars on Gao was relatively limited. As for this generation, when Jinghua started its business, it was protected by the upper levels of technology monopoly. After it became rich, it was because of its extremely abundant capital.
High, there is often no need for any price war.
Now, the price war is coming.
Now that things have happened, as a pragmatic Gao who has studied some economics, he naturally quickly understood that it was natural for the textile industry to break out of a price war. On the contrary, it was his failure to predict in advance that was the real negligence - in the final analysis
, or because he is too busy. On the one hand, he has to be the chief minister of the imperial court, and on the other hand, he inevitably cannot care about the development and changes of Beijing.
Why did the price war break out? This is naturally knowledge that Gao Pragmatic has learned. Even if he has not used it for many years, he will not forget it. Generally speaking, there are several possibilities:
First, oversupply: With the improvement of productivity, the problem of overcapacity has appeared in some industries. In this case, companies are facing huge pressure to survive, and price reduction has become an effective response measure. A large number of companies or several
When leading companies do this, a price war breaks out.
Second, insufficient market demand: Although there is excess production capacity in some industries, in other industries, due to other problems that have not been effectively solved, consumers generally hold a conservative attitude and actively or forced to reduce consumption levels, which is also
This will lead to price wars.
Third, product homogeneity: In many industries, the homogeneity phenomenon between products is very serious, which forces companies to reduce prices to attract consumers.
Fourth, market competition is fierce: Since China has been characterized by "vast land giants" since ancient times, except for a few eras of separatist rule, it has been able to form a unified dynasty most of the time, so overall it is a "super-large unified market."
In this case, market competition is often particularly fierce, especially in the fields of necessary consumer goods such as food and cloth, so price reduction will naturally become the most common marketing method.
Fifth, the strategic choice of enterprises (or families, clans, or chaebols): For some powerful wealthy families, they may use their economic strength to adopt a strategy of dumping sales in a certain regional market at a price below cost.
To achieve the purpose of controlling the market.
Before the emergence of business overlords like Jinghua, this style of play was generally limited to the coverage area of the wealthy family. For example, a county, a prefecture or a larger area, but that was about it. Few families were as powerful as
to control a provincial market.
However, after the emergence of Jinghua, this situation began to change. Because Jinghua is too huge, its competitors will naturally find that it is completely impossible to compete with Jinghua alone, and they must form some kind of alliance.
, otherwise they have no choice but to surrender and change careers, allowing Jinghua to wipe out their original market.
As a result, the Jiangnan area with the highest concentration of commercial capital began to form the Jiangnan Chaebol Alliance. Although they did not form a blood alliance and did not really form an inherent organization, they did unite with the purpose of coordinating the unified actions of the major chaebol families. "
Resist Beijing’s oppression”.
This brings us to the sixth reason for the emergence of price wars, namely the competition for market share: in later generations, expanding market share is one of the major goals pursued by enterprises, and in a normal commercial market with transparent prices, price reduction is the most direct and effective way.
Jinghua has unique advantages in almost all fields involved in the Ming Dynasty: advanced technology, abundant capital and political resource endorsement.
In this case, Jinghua's grab for market share is usually simple and direct: because of advanced technology, our products are highly competitive; because we have abundant capital, we can cut prices and promote sales, which can sometimes even be called dumping; because behind my back
I have almost the strongest political endorsement in the world, so I have no fear of what you are doing behind my back.
As a result, pressure was put on competitors. The Gangnam Chaebol initially thought that as long as everyone united and sold at a certain price, they could stabilize the market price and ensure profits. However, the reality is that Jinghua gave them
A loud slap in the face - Jinghua Textile doesn't care about their unified pricing and directly follows its own sales ideas.
There is no doubt about the result, and consumers are not stupid. The cloth from your Zhang family sells for one or two yuan, while the cloth from Jinghua only costs eight yuan, and the quality of Jinghua's cloth is even slightly better. Then I am stupid not to buy cloth from Jinghua.
ah!
This can lead to the seventh and eighth reasons that lead to price wars. The seventh one is to obtain first-mover advantage: If a company can take the lead in lowering prices, it can occupy a dominant position in the market in the short term and may continue to maintain it in the future.
This kind of advantage. Putting aside the new markets created by Jinghua itself, when Jinghua joins an old market, it usually starts like this.
The eighth point is more direct, small profits but quick turnover: In a market economy environment, companies need to achieve profits through various means, and reducing prices to a lower price can achieve the purpose of small profits but quick turnover, thereby increasing the profit margin of the company.
.
I have said many times before that all departments within Jinghua implement a self-financing model, but what is not elaborated on is what is behind the "self-financing" model. In fact, since they have to be self-financing, there will naturally be "dividend incentives" behind it.
"Last place eliminated" and other corresponding reward and punishment mechanisms, otherwise Gao Pragmatic would have gone bankrupt long ago. How could Jinghua's current business giant emerge?
Basically, unless Gao Pragmatic orders various departments to conduct joint deployment - for example, all departments in Jinghua in the northwest are now required to contribute to the Western Expedition - otherwise there will not only be no joint action within Jinghua, but sometimes there will even be misaligned competition.
For example, the two powerful departments of Jinghua Steel and Jinghua Infrastructure sometimes fight over some overlapping products. Generally speaking, although reports on these matters are sent to Gao Pragmatic's desk, Gao Pragmatic does not report them at all most of the time.
No matter. It is not that no one has the courage to speak to the boss about this, but Gao Pragmatic will usually answer: "Only with competition can progress be achieved." and then continue to ignore it.
Under such a management model, the people in charge of various departments in Beijing are naturally oriented towards competition. They must compete internally and even more externally. After all, the truth is obvious: whether I want dividends or "progress", I must first
Increase profits first, because profit is the primary assessment goal of all departments in Beijing (even relevant departments that need to directly participate in the war).
So, what does Jinghua Textile do? Do you need to explain in detail? I, Jinghua, are the inventors of the "Jinghua Spinning Machine", and we also have a steady stream of technicians sent from the Jinghua Craftsman School. I can continue to improve and improve spinning.
Machinery technology can continuously optimize the production organization model, and finally reduce costs and increase efficiency, achieving the goal of "relying on technology to crush you, relying on quality to still crush you."
After a period of time like this, the production and sales pressure of the Gangnam Chaebol will naturally increase step by step, eventually reaching a point where it is difficult to resist. But the reason why the Gangnam Chaebol can become a chaebol is that they will not be stupid enough to watch the final date come.
They quickly united after sensing the danger. First, they intended to shake Gao Pragmatic politically. After failure, they did not delay and immediately returned to the main commercial battlefield (but did not completely give up politically) and directly started a price war.
Hoping to regain the market and force Jinghua to make concessions.
Some people may wonder why the Gangnam Chaebol thinks price wars are useful when Jinghua's advantage is so great. In fact, price wars are just a reaction at the commercial level, and they may not really think that price wars alone can force Jinghua to make concessions.
Their real purpose is to make the matter so big that Gao Pragmatic has to face up to the intensity of the Jiangnan business war and consider making a compromise.
Will Gao Pragmatic give up the various advantages that Jinghua already has and make compromises because the Jiangnan business war is too fierce? Of course it is possible, and the probability of compromise is high.
Why? Because the Jiangnan chaebol knew very well that Gao Pragmatic's "main business" was never a businessman. He was the chief minister of the imperial court and the leader of a party; he was the number one scholar in the Sixth Order and the leader of the scholarly community.
In the special political environment of the Ming Dynasty and even the "feudal era" of China, it was impossible for such people to get into money, because social moral constraints are often "the higher the status, the greater the constraints" - look at Zhu Yijun in the original history
When he was young, he got drunk and beat up an eunuch, and even had to be ordered to do so by Empress Dowager Li. This was also part of the "social moral restraint".
Speaking of which, thanks to the fact that Gao Pragmatic's family is a "practical learning sect", when he founded Jinghua, what he preached to the world was "I did this to prove the feasibility of rejuvenating the country through industry and commerce", which was part of the practical learning thought. Otherwise,
If so, Jinghua would have been charged with high pragmatism long ago!
Now that Beijing has achieved this step, Gao Jingshi was impeached for talking about using power for personal gain. It can only be said that Gao Jingshi has made too much contribution in the past, and the financial performance of Ming Dynasty has indeed proved that "rejuvenating the country through industry and commerce" is indeed feasible. Among the big chaebols,
At a time when they could still get by, they didn't want to overturn the table.
As for now... isn't it that we can no longer survive even if we make do with it?
It must be said that their goal has actually been achieved, because after Gao Pragmatic figured out the logic behind it, he naturally planned to compromise.
This is not a war, not a life-and-death struggle, and even Gao Pragmatic has never intended to "annihilate" the Jiangnan plutocrats.
Are you kidding me? What he wants to do is to cultivate the emerging bourgeoisie. Wouldn't it be contrary to his own ideals to eliminate them? After wiping out these sprouts of capitalism, how can his pragmatism expect the still stubborn landlords?
Men running into capitalism?
The emergence of Jinghua was, firstly, used to provide Gao Pragmatism with funds; secondly, it was used to guide nobles and some officials of the pragmatic school and the families behind them to start the bourgeois transformation; and thirdly, it was used to force business families across the country, represented by the Jiangnan Chaebol, to compete.
to accelerate development and transformation.
In short, for the Jiangnan chaebol, Gao Pragmatic actually hopes that Jinghua will be their whetstone, but he will never break their knife with one stone.
Since he planned to compromise, Gao Pragmatic immediately called Cao Wenzhen, president of Jinghua Textile, to discuss the matter in person.
The "Cao" of Cao Wenzhen has nothing to do with Cao Gan, the president of Jinghua Trading Company, and his son Cao Ke, the confidential secretary of Jinghua Secretariat. Cao Wenzhen originally had three sisters and two brothers, and he was the youngest.
His initial relationship with Gao Pangshi came from his eldest sister Cao. Cao was Gao Gong's concubine and the biological mother of Gao Gong's four daughters.
As mentioned a long time ago, Gao Gong had no children in his life, so after his death, he adopted his second son Gao Wuguan from his sixth brother Gao Chou as his heir. However, Gao Gong originally had three daughters, all of whom were born to his concubine Cao.
It's a pity that they all died young.
Gao Gong's three daughters, the eldest, Qizhen, died at the age of fifteen; the second, Qizong, died at the age of fourteen, and was going to get married in a year or two; the youngest, the fifth sister (the fifth sister is a nickname, may be
Because he did not dare to take a famous name, so he did not record his famous name.) He died at the age of fourteen. They all died before getting married.
Gao Gong had a very good relationship with his daughter. Her daughter was particularly attached to him, especially her youngest daughter. When she was young, he would hold her in his arms every day. After his first two daughters died in infancy, his biological mother Cao died of excessive grief.
He suffered from hemoptysis since he was a child. He relapsed due to the pain caused by the death of his biological mother, and he died of the disease.
Gao Gong was working as a Hanlin scholar at the time and was temporarily buried outside Beijing, planning to move his burial back to his hometown in the future. However, it was delayed due to the fierce political struggle. It was not until Gao Pragmatic finished the Monan War and stabilized his position in the DPRK that he took the time.
Come and move my cousin's grave to the ancestral grave in Xinzheng in a glorious manner.
This chapter is not over, please click on the next page to continue reading! Because of this incident, Gao Pragmatic met Cao Wenzhen, who came to the capital as his cousin and uncle. After some introduction and communication, he learned that the Cao family has always been in the textile business
, but the scale is limited - this is not surprising. The north has always focused on military and political affairs, and has long been inferior to the south, especially the Jiangnan region, in terms of "industrial development".
At that time, Gao Jingshi was still a little strange. Although Cao was only Gao Gong's concubine, Gao Jingshi was the "double heir" of the third uncle Gao Gong's political status and academic status. He should treat the third uncle's wives and concubines as well as the wives and concubines of the third uncle.
The family takes care of them. Now that I have reached this status, why has the Cao family never come to me for resources?
Later, through exchanges, I learned that the Cao family had difficulties in business in the early years and was politically suppressed by business opponents, so they had to give their eldest daughter to Gao Gong as a concubine. However, Gao Gong took good care of the Cao family, especially when it was determined that the main wife would have no children.
Next, he took more care of the Cao family.
However, Gao Gong himself was not rich, and this care could be said to be two to three hundred taels of silver per year. The Cao family was already managed by two adult brothers of the Cao family at that time. As the head of the Cao family, the eldest brother acted under Gao Gong's
The name was used to bully and dominate the market in Mi County (Xinzheng Lin County, where the Cao family is located), but Gao Gong found out about it, and he was furious and ordered Mi County to investigate...
In short, the final result is that the two brothers-in-law of the Cao family received a heavy punishment of "three thousand miles of exile."
Kou Bian (who had not paid tribute yet), both lost their lives.
Because of this incident, Cao Wenzhen, who was still underage at the time, publicly swore to sever ties with his "brother-in-law" Gao Gong because of his youth and arrogance, and then he actually broke off the relationship.
After Gao pragmatic learned about these situations, he naturally used his usual advantages to convince Cao Wenzhen. To this end, he even publicly staged a "three visits to the thatched cottage" style performance, which convinced Cao Wenzhen that he was sincere and wanted to take back his angry words.
However, the reason why Gao Pragmatic did this was, on the one hand, for the sake of the posthumous name of Gao Gonggong, who had already received the posthumous title of "Wenzheng" (although annihilation of relatives for righteousness was considered a compliment in this era, it was not a complete compliment), and on the other hand, he discovered that
Cao Wenzhen has some good insights into business and textiles, but because he had a falling out with the Gao family, most people turned around him, so it would be good if the Cao family's industry could be sustained, but there was no hope of growing bigger.
The timing of this incident was very coincidental, because in the early years, Gao Pragmatic had no intention of entering the textile industry. Later, in order to promote spinning machines and see if it could promote technological progress, he decided to let Jinghua personally join the textile industry.
At this time, a supervisor was needed, and Cao Wenzhen happened to appear, so Gao Pragmatic naturally would not let down God's kindness and took Cao Wenzhen under his command.
After that, Jinghua Textile was established and Cao Wenzhen was appointed as president. Cao Wenzhen also lived up to his mission and allowed Jinghua Textile to step up in the red ocean of the textile industry, and finally defeated the Jiangnan chaebol in the past two or three years, forcing them to
Come up with this strategy.
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Thank you to the book friend "The Boy Next Door 1" for your support of 18 monthly tickets, thank you!
Thanks to the book friends "Tianmu Sanxian", "Burning in August", "doni", "Long in Disrepairnn", "Apodes", "Amateur Viewers", "Book Friends 20170107012220447", "First Login", "Book
PS: I originally planned to write a little bit to make up for the 5K, but when I came back tonight, I accidentally got caught in the rain. I didn’t feel much at first, but now I feel like I’m having a heavy head, so I stopped now...
