Chapter 447: Big Companies Compete for Foundation

"Tengda is going to acquire WeChat?"

Li Zehua had never heard of such a funny thing. The biggest rival did not use competitive means to curb the development of its peers, but came to talk about mergers and acquisitions first.

What's the big deal? Are they deliberately showing weakness, or are they trying to take the opportunity to disrupt WeChat's management and buy time for their similar products?
"Mr. Xu said that Tenda is willing to use a certain number of shares plus cash to acquire WeChat's global business, and Tenda's board of directors will also reserve a position for Qingyun.

In addition, all traffic products under Tengda have completely opened their doors to Qingyun’s business, including QQ space and internal link promotion…”

Gu Shijie repeated Xu Chenye's original words in detail, and finally put forward his own opinion: "After discussing with Mr. Wu, I think we can talk about it. When it comes to computer-side promotion, the company has no experience to follow.

Moreover, Tenda has a huge first-mover advantage in the traditional field. If we can get some better conditions through negotiations, even if it can make Tenda let down its guard a little, it will be good to successfully launch the product on the computer side.”

"Then let's talk about it. It's also a good idea to find out Tengda's bottom line."

Li Zehua did not object. "By the way, I will talk to Mr. Xu about the advertising cooperation in 11. I will talk about the contract amount as high as possible to give Tenda the illusion that the company is only focusing on the mobile phone side.

It is based on normal commercial investment in market development, rather than a determined future strategic goal. On the contrary, it attaches great importance to and relies on the traffic of Hetengda. Do you understand?"

Gu Shidian nodded, “Boss Wu is still talking to him.

But boss, isn’t the workload over the last two months a bit too heavy?

Roewe mobile phones are online, WeChat Technology PC version is online, and university town bicycles are put into use. I think Mr. Yang’s promotion department is busy as hell.”

“It’s better to be busy, and the three are mutually beneficial and complementary business models.

If Roewe phones sell well, the various apps under the group can expand their user base accordingly, instead of being like they are now, seemingly far ahead but in fact each software only has a few million users.

You may be overtaken by competitors at any time.

As for the promotion of WeChat Technology’s PC version, didn’t the group already set the first phase of expansion goals?
Provide office needs and additional communication needs for business people, mobile and computer versions can communicate with each other, through more convenient voice chat, and video call functions specially provided for high-quality customers.

People who have come into contact with WeChat technology can no longer live without it, and communication operators will not object. The cost of calls and text messages may be reduced in the early stage, but in the long run, data traffic charges will skyrocket.

The rapid growth of traffic value-added services will, in turn, prompt operators to make greater concessions, helping WeChat Technology to further occupy more market share..."

Li Zehua always does things in a closely linked and interconnected manner. Any plan that comes to him, as long as he can break in, he can then smuggle in a lot of value-added services.

Everyone who has used it says it's good, and there's no significant negative review so far.

"The introduction of shared bicycles into campuses focuses on green environmental protection, physical exercise, energy conservation and emission reduction. These concepts are in line with college students' ideas, bring real convenience, and are not difficult to promote.

All the bicycles that were initially put into use can be used free of charge after registration with a student ID card or ID card.

After initially occupying the national college student market, we will immediately promote it to major cities across the country, striving to achieve full coverage without blind spots.

Don’t forget that all the patents for scanning QR codes are in the hands of the group. To scan the code, you first need a smartphone, which will indirectly increase the sales of Roewe, Honor and even Panda phones.

There is no need to worry about using other brands. Now even Apple and Samsung have to negotiate with the group on software services. If we play this card well, we can get more patent licenses.

With the advent of smartphones, power consumption has skyrocketed, providing a broad market for shared power banks, which also require scanning QR codes. These have created a fantastic linkage with micropayments.

Several products perfectly form an internal cycle, which provides necessary services for spiritual entertainment, food, clothing, housing and transportation beyond business office, plus an all-in-one card and an app store.

As long as the first batch of smartphone users accept this system at the beginning, it will only snowball and grow until everyone is dependent on this system. "

Gu Shijie was silent for a while. He really wanted to say, Boss, you are doing such a big thing and it sounds like the prospects are very good, but the employees below are not supportive!
The promotion department has now expanded to more than 20,000 people, but faced with such a huge and ambitious business plan, it still feels difficult to execute. Yang Zhichao took over as co-chairman in October.

However, they spend less than one-third of their time at the company headquarters. Most of the time, they stay in the promotion department to assign tasks. It is so busy that everyone in the promotion department wishes they had three heads and six arms and could not eat or sleep.

However, even if women were treated like men and men were treated like animals, and the company worked overtime, it still failed to achieve the goals expected by the company.

He could only sigh helplessly, "Poor Mr. Yang, just wish him good luck!"

……

Wang Xing and Sun Tongyu are as miserable as Yang Zhichao. The former focuses on cities and the latter focuses on rural areas. They are also among the biggest victims of the group's major adjustment of its main business at the end of the year.

"We can't do this anymore. Many salespeople have abandoned their jobs. Compared with May Day, sales during the October Golden Week have dropped instead of increased. To put it bluntly, the workload is too heavy and cumbersome.

A salesperson in an experience store not only has to take on the task of selling home appliances, but also has to collect, enter and organize various information, and from time to time have to join in other businesses temporarily arranged by the group.

Agricultural companies' procurement, packaging and transportation, as well as the cultivation of consumers and farmers and the development of standardized procedures for operating smartphones are all completed by front-line sales staff.

Although the salary has increased significantly, the core work of the experience store is sales. Isn’t this putting the cart before the horse? "

Sun Tongyu privately complained to Wang Xing, "The situation over there should be even worse, right? After all, I have nearly 25 stores and nearly employees.

You only have more than 10,000 people, but the number of sales and service objects you cover is no less than mine.”

"It's OK. I usually outsource these tasks by placing orders. I find someone to work part-time for a month from Hummingbird Crowdsourcing. Once the job is completed, I will lay off the position and recruit again if needed."

Cities have much greater advantages than rural areas. Just the comparison of employee data can tell it all. 5% of the people who use Pinduoduo local life (mainly group buying business) use Pinduoduo e-commerce.

It generates 35% of the latter's revenue scale and its net profit is dozens of times that of the latter. If it were another boss, he would have already started to reduce the staff size and free up profit space.

However, Pinxixi e-commerce also has the heavy responsibility of cultivating the rural market, which involves countless key businesses and cannot be easily moved. The management can only bite the bullet and continue to apply for additional staff.

However, every time a report was submitted, it would be stuck in the Human Resources Department. Gu Shijie had also learned his lesson. It was okay to add people, but there had to be sufficient reasons. Otherwise, no matter how many people were added, they would not be allowed to do so.

The group will not even have to wait until 2011 for the number of full-time employees to exceed one million. What does this mean?

Even if we calculate it at 6000, with five insurances and one fund, the minimum salary is 60. The monthly salary alone is 720 billion, billion a year?
Even if all the group's businesses are taken into account, without considering the excess profits earned in the financial market, there is still not enough to pay the salaries!
In short, in the past, they recruited people like crazy because there were not enough people. Now, there is one position for each person, and until the group's overall revenue reaches the requirements, they are strict in admissions and lenient in exits.

Even when recruiting food delivery couriers, they have started to be very selective. Not only do they have strict requirements on service attitude and delivery time, they also start to assess their personal image, diplomas and academic qualifications.

Wang Xing looked at his phone from time to time and spoke absentmindedly, "I seem to have heard Mr. Gu mention before that he decided to add a product experience position in each experience store, and these sundries will be taken care of by a dedicated person in the future.

Then adjust the specific division of labor of existing front-line businesses according to actual needs.”

He is the rotating co-vice chairman this month and can get a lot of inside information in advance.

"Is this true? They want to add tens of thousands of people at once? The application to set up a new department at the headquarters with 50 positions took more than a month to be approved but nothing happened."

Sun Tongyu didn't quite believe it, because it would mean an additional tens of millions of dollars in expenses every month. Pinxixi e-commerce currently has about 25 full-time employees, who only receive salary, five insurances and one fund every month.

The total expenditure is as high as over 15 billion, which is 180 billion per year. Even if the monthly revenue is stable at over billion, and there are special national subsidies for home appliances going to the countryside, it is only enough to barely maintain operations.

Once there is a large-scale investment, technological research and development, or other sudden major expenditure projects, Li Zehua will need to convene a board of directors, or bring in investors to increase capital and expand shares.

Or they can borrow money from Qingyun Investment to get by. In short, Pinxixi e-commerce, which was once hard to get a stake in, now has only a few venture capital institutions actively knocking on its door, mainly because the losses are so terrible.

After waiting for a while and not hearing Wang Xing's reply, Sun Tongyu couldn't help but glance at him and said with a smile, "I'm still thinking about Tengda coming over to negotiate.

Don't even think about it. Even Mr. Yang didn't get a chance, let alone you. Mr. Wu from WeChat Technology should be in the talks now. "I really want to transfer to WeChat Technology immediately and have a good fight with Tengda!"

Wang Xing sighed, "I thought I had let it go completely. After all, I was doing pretty well on Pinxixi, with a monthly revenue of 10 to billion yuan and a guaranteed net profit of billion yuan.

Don't look at me with such envy. I still want to trade with you. Even if the rural market loses tens of billions every year, it is still one of the company's most important businesses. This can be seen from your appointment as co-CEO.

It can be seen that, to put it bluntly, no matter how good the local life services are, there is a ceiling limit. Once the factories clear out their remaining goods, there will not be such cheap goods available in the future.

This group-buying business model has no source of sustainable growth. It is no wonder that the company agreed to go public in the U.S. market in the second half of next year. To put it bluntly, it is preparing to cash out.

Maybe in a few years, when the stock price drops, the company will be privatized and delisted, and then you can acquire it and merge it with the company.”

Wang Xing has a very clear understanding of the situation. The future limitations of urban group buying are there. Unless there is a horizontal breakthrough and the business of other subsidiaries of the group in the city is seized, is there any possibility of problem?
“It’s still early. Judging from the current market situation, we can play for another three or four years without any problem. Moreover, even if it doesn’t work out in China, we can still go abroad and flourish.

Not to mention that the boss has already arranged a place for you in advance. What can I say about Wu Yibin? He is good at handling interpersonal relationships and coordinating the interests of all parties, but he seems to be lacking in running a business.

You were an executive vice president in the past, and maybe one day you could be promoted to a full-time position, and it wouldn’t be a problem for you to become a co-chairman in the future.”

Sun Tongyu said this and looked at him with envy. This guy was lucky. As soon as he arrived, a prime position was vacated, and later he took over as the person in charge of group purchases from him.

It has also obtained the qualification of being the first listed company for all businesses within the group. As long as it follows the steps, it will not lack money or status.

Now, because of his experience in working with Tenda, several feasibility suggestions he submitted were all adopted and implemented. After being appointed by the boss to lead Pinxixi to a successful listing, he will be able to transfer smoothly.

No matter how you look at it, the future of WeChat technology is much stronger than Pinxixi.

But facing his envy, Wang Xing was helpless, "It's still too early. By the time I transfer to that position, the most intense competition between WeChat Technology and Tenda will have ended long ago. I will have to endure it slowly.

The boss is really something. Xu Chenye finally came to me, and I have to confront him. Maybe I can get some unexpected gains."

"Now is not a good time to tear each other apart."

Sun Tongyu shook his head. "I heard that Tengda also sent people to contact Meizu in Zhujiang City and to find coarse grains in Yanjing. It seems that they are moving from the software industry to the hardware industry.

If you continue to stimulate it, maybe tomorrow Tenda will start making mobile phones itself."

"That's good. In the traditional instant messaging software industry, Tenda is an undisputed giant. Even if the group can catch it off guard at a good time, it will soon be overtaken by Tenda.

As long as it disperses its strength to other industries and slowly drains it, it will gradually build up a competitive advantage~"

When big companies compete, what they compete on is their foundation.

Tengda was able to think of distracting Qingyun's attention, easing the situation on the surface, and secretly stepping up lobbying of investors to establish a unified ideology, preparing to give Qingyun a critical blow.

Qingyun is not bad either, and their response plan is similar. They use a sky-high advertising contract to lure Tengda into a trap, and then try to lull them into thinking that Qingyun is not prepared, and thus let down their guard.

If it really doesn't work, it will try its best to create opportunities in other industries, try to draw Tengda's attention, and hinder Tengda's hands and feet in industries that it is not familiar with.

It was by chance that the coarse grain factory came into Tengda's sight. When Yu Huatian received Tengda's invitation for cooperation, he was a little confused.

Relying on Coarse Grain Home, he managed to attract millions of active users, and attempted to use this platform to develop his own smart instant messaging software, but he has not yet started.

Has Tenda targeted you?
Xu Chenye arrived very quickly. He stayed in Shanghai for two days and successfully signed a series of cooperation agreements, obtaining billions of advertising orders for Tenda. However, the investors were still not satisfied.

Because Qingyun did not reach an agreement with Tengda on the acquisition and sale of WeChat Technology, Li Zehua's attitude was ambiguous, and Gu Shijie and Wu Yibin, who were responsible for representing the company, also made excuses.

Xu Chenye understood a little bit that Qingyun was planning to compete with Tenda in the smartphone client area.

The two parties had some unpleasantness over the issue of investment in the Pinxixi group buying platform. Now Pinxixi group buying has been renamed Local Life, with a valuation of more than US$80 billion.

However, due to the overall cooperation between the two parties, Tenda has never cut off its traffic promotion for Pinxixi, allowing the latter to develop smoothly.

It's funny to say that the group buying platform that Tengda created by integrating its own resources was once very powerful and acquired as many as three or four hundred online shopping websites, but it has been half-dead until now.

Even its market share in its base in eastern Guangdong has been squeezed out of the top two, and its current valuation is less than 30 billion, and it is still worth RMB.

Xu Chenye left Shanghai with regret, and Tony Ma was also unhappy because his lobbying of investors was not going very smoothly.

As Qingyun has developed to this day, its great reputation in the financial market is what makes everyone fear it.

Investors have no doubts about Tenda's competitive advantage in the instant messaging industry, but they are only worried that if a war breaks out with Qingyun, it will easily affect the capital market, such as shorting Tenda's stock.

Once the stock market cannot be stopped, Tengda’s market value will be greatly reduced. Who will make up for this loss?

Tony Ma was helpless and could only turn to the Chaozhou porridge behind him for help. After paying a heavy price, he got the support of the majority and decided to defend Tenda's position in the instant messaging field at all costs.

……

When Xu Chenye approached the coarse grain factory and prepared to invest in the latter to build his own hardware empire.

Wu Yibin and Lin Wenhui also began to lead the team northwards and began to lobby friendly companies in various places to support the switch to WeChat technology, with the focus being 361.

Zhou Hongyi was very surprised. Some time ago, he took the initiative to send Qi Xiangdong to the door, but was rejected with a tough response.

Why is the other party coming to me again now?

"It's a different time now. At that time, Tengda didn't send anyone to Shanghai to buy the entire WeChat. Now that they have started to act, Qingyun can't just sit there and wait for death."

When we visited 361, Lin Wenhui was not there. He went north to lobby the higher-ups to speed up the acquisition of Minsheng shares.

Only Wu Yibin led a group to visit 361. “What’s more, for Mr. Zhou, the support of Qingyun means that half of the entire Internet has stood up.

Before coming here, the boss personally summoned me to inform me of the key points of this cooperation. If Mr. Zhou agrees, the group will cooperate with Mr. Zhou to jointly develop anti-virus software based on smartphones.

We can even extend the cooperation framework to the research and development of smartphone operating systems and computer operating systems.”

Zhou Hongyi was completely dumbfounded. "Don't be ridiculous. I've seen the test machine of your Roewe phone (all our competitors give it to us in advance). Although it looks similar to Android phones on the surface.

In fact, the kernel has been changed and reshaped.

In other words, the best piece of cake has been eaten by Qingyun, leaving us with a piece of computer operating system smeared with highly toxic substances. Is this an industry that ordinary companies dare to get involved in?

Do you really think Microsoft is made of mud? "

Zhou Hongyi was not fooled. "We can cooperate on mobile antivirus software, but I want Qingyun to publicly support the competition between 361 and Tengda."

"Yes, but we have to wait for the right time."

Wu Yibin agreed with a smile, thinking that everyone had come to a meeting to discuss the matter, and that 361 was in a difficult situation at the moment, as that was Tengda, except for Qingyun, Ali and Qiandu.

At this time, there is no fourth company in China that can face this situation calmly. (End of this chapter)