Chapter 18: No One Can Fight

"If YeZi Food Delivery starts delivering food and drinks on campus, how will Mr. Zhang respond?"

Li Zehua continued this topic, saying that it is convenient and saves time to use the opponent's force to counter attack, so why not use it?
Qin Lang reacted faster, "Subsidy to grab the market? How much is a bottle of beverage? If he subsidizes, we will also give it away."

Li Zehua pressed on, "Okay, even if we all get paid, the employees who deliver meals to YeZi are regular employees, and their service is far behind our part-time employees. Should we follow suit? How much will it cost?"
Moreover, YeZi also has an advantage in terms of capital scale. What if they choose to increase subsidies in the next stage, such as reducing the commission for merchants and increasing the gifts for customers who place orders? "

Zhang Xu was pressed into a corner. "That's impossible. We will lose money. Our current commission rate is strictly calculated. It's not profitable at all if it's lower than 8%."

In business, the more panicked the opponent is, the more Li Zehua's chance is. "Mr. Zhang, I remember you repeatedly emphasized to me that Fanjisong is a company with Internet genes, right? Then, isn't the development of Internet companies based on increasing market share to share costs, making losses in certain core areas to gain traffic, and finally forming a de facto monopoly and then earning excess profits?"

Zhang Xu felt a headache. Talking to this person who knew him inside and out was like tying up one's hands and feet to fight. It would be strange if he didn't get beaten black and blue.

After glaring at Konka, blaming him for revealing the truth, he gritted his teeth and continued, "This kind of loss-making business is doomed to not last long. If they continue to increase subsidies, we can temporarily avoid the edge and grab the market back after their subsidies. I am very confident about this. After all, we can get the support of the school in the home turf of Jiaotong University."

Yes, that’s what Fanjisong did in its previous life. No matter where it went, as long as competitors launched a subsidy war at all costs, Fanjisong would give in at the first opportunity, and then use its own huge advantages to slowly seize the market after the competitors’ subsidies ended.

This certainly avoids the biggest risk in the expansion phase and saves money, but it loses the most important time and momentum, the kind of ambition to draw the sword against the enemy and kill you at all costs as long as you dare to fight, and then dominate the entire industry.

Throughout history, time is one of the decisive factors in determining the outcome of a war. Whoever controls the initiative of time will have the first-mover advantage. The same is true in business competition!

Meit, which was able to strike back from behind, saw this and made up its mind to enter the food delivery market. Relying on an extremely resolute money-burning war, it forcibly pushed Fanjisong off its position as the food delivery overlord.

How can the lost market be regained so easily? Isn’t capital used to burn at critical moments? Exchange funds for the market, as long as the financial statements look good, and go around the capital market after packaging, many investors will vote with their feet.

All we can say is that the flowers in the greenhouse are beautiful, but they lack the determination to fight to the end at the critical moment!
Thinking of this, Li Zehua also delivered his own fatal blow, "Maybe there are some local advantages, but if I were the boss of YeZi Food Delivery, I would never allow another serious threat to appear beside my bed!"

"Isn't it just a subsidy? With the current market size, how much can Jiaotong University subsidize every month? One hundred thousand is enough, right? With the scale of Xiaoye Meal Delivery, it is entirely possible to use the profits of other regions to completely fight the subsidy war until Fanjisong goes bankrupt!
With Jiaotong University as the center, we can replicate the successful cases in universities in other cities. How big a business is this? Going a step further, how many food delivery markets are there in the entire East China region? What about the whole country? Without competitors, relying on the advantages of monopoly, whether it is merchants or customers, won’t the winner take all? ! "

"Mr. Li, what you said is right, but how much manpower and material resources are needed here? Just the nationwide data exchange and information communication alone is almost impossible to achieve." Qin Lang listened and pondered.
The market is there for everyone to see, but the time and money costs are too high and there is no way to solve it. At least he can't think of a good solution.

At the same time, a feeling of admiration rose in my heart. Although Mr. Li looked young, his thinking was very clear and his skills were powerful. It was a pity that traditional business methods could not support his ambitions.

Li Zehua was confident, "This is why I invested in Fanjisong and Mr. Zhang! The key lies in the Internet!"

The key lies in the mobile Internet!!! But at present, by laying out the Internet, building a team to improve the structure, opening up business logic to cater to capital, accumulating strength and waiting for the east wind to arrive, you can soar into the sky and dominate the nine heavens.

Qin Lang didn't react for a moment, "Internet?!"

"Yes, the information transmission and communication on the Internet will greatly save costs and make the impossible possible! For example, if there are 10,000 orders, traditional businesses may need dozens of order takers, dozens of backend data processing, and repeated verification with merchants. These tedious matters greatly hinder the expansion progress and service experience, but the Internet can perfectly solve these problems!"

Li Zehua passionately described his grand blueprint, "Mr. Zhang launched the online ordering service this month, which perfectly combines merchants, customers, and data information. We only need to continuously improve the website service and strengthen the training of the delivery team, and we can quickly seize this market that is ignored by most people."

"Everyone, a market that Jiaotong University has not yet fully developed has a net profit of tens of thousands of yuan every month. How many universities and white-collar workers are there in the entire Magic City? How many markets are there in the whole country? It is no exaggeration to say that this will be a market worth tens of billions or even hundreds of billions! Now it is there, waiting for us to conquer it!"

These words made everyone present excited, and Zhang Xu felt that they touched his heart, but he thought about giving up 40% of the shares.

He backed off!

"Mr. Zhang, I am a partner, not a troublemaker. We have a common goal, so why don't we work together?"

Li Zehua stared at him and now just wanted a definite answer. Today's New Wave's daily limit increase gave him endless confidence. With the first million, how far could the next ten million be?
Zhang Xu thought for a moment, and finally shook his head and refused. "Although I really want to accept your investment, 40% is too high. I have entrepreneurial team partners to take care of, and Dachuang Fund is also interested in investing. Do you think you can accept a better valuation?"

Li Zehua did not answer directly, staring at Qin Lang, "Boss Qin also means this?"

If you are really optimistic about it, what have you been doing before? It is not a real industrial investment fund. It is just a play of transferring money from one hand to another. If you get involved now, it is nothing more than raising the price.

Qin Lang didn't expect him to be so aggressive. He didn't get any authorization before coming here, so he didn't dare to agree casually. He evaded the question and said, "Well, we have to go back and discuss it, but in principle it's not a big problem."

He then advised, "I am moved by Mr. Li's lofty speech. I believe that the fund's senior management will also see the future development prospects of Fanjisong. Why don't we invest together and expand our market share? Wouldn't we get more benefits in the future?"

Li Zehua smiled. He was not a sucker. If he couldn't get enough shares, how could he guarantee that he would not be kicked out in the future?
So he said, “I am optimistic about the future of Fanjisong, but that doesn’t mean it is worth that much now.”

He stopped everyone who wanted to explain and looked directly at Zhang Xu, "One million is enough to set up a new Fanjisong! Five million will bring you an all-round and fierce competitor!"

"So, friend, or foe?!"

(End of this chapter)