394. How high is this enlightenment?

The news soon reached the ears of Lenovo Group's senior management.

"What does this mean? Snatch business?" Yanagawa Shi frowned, feeling that this young man named Cao Yang is too ignorant of the current affairs, right?

Shi Yanagawa, who was supposed to retire and work at home, was blown up by a financial crisis and returned to Lenovo to take up the banner and serve as the chairman of the group.

With his return, Yang Yuanqing also re-elected as CEO to replace William Amério.

Not long after I returned to the company and started to get familiar with the business, I received such a big news, which really made Shi Yanagawa feel angry and funny.

As the successor, Yang Yuanqing looked at his boss next to him, thinking to himself that although Mr. Liu was calm on the surface, he obviously cared a little.

If it is an ordinary small company, even if some famous Internet companies in China say they want to make laptops, Mr. Liu probably doesn't care that much.

The main reason is that Bomi is so popular now. A company has transformed from 2000 to now, and has transformed into the world's largest Internet company with a market value of US$200 billion. With such a large size, Lenovo Group cannot ignore it.

What makes people even more angry is that-

Cao Yang is really a rogue. He said before that he would earn more than Lenovo within 3 years, which puts great pressure on Lenovo.

"The boss of Bomi Company is really young and energetic." Yanagawa Shi laughed.

There are very few Internet companies in China who dare to grab the laptop market.

On the one hand, no one knows that Lenovo is the leader in domestic laptops. The domestic market alone accounts for more than 38%, and the rest are Dell, HP... these.

Although Shenzhou Computer is known for its low price, it has a bad reputation. Many people would rather spend more money to buy Lenovo computers than buy a sub-quality product from Shenzhou, mainly because after-sales service is not guaranteed.

Why is Bomi Company jumping like this now?

"Haha," Yanagawa Shi smiled slightly, "It seems that Bomi just finished his IPO and got 80 billion US dollars and was in a hurry to challenge us."

"It should be." Yang Yuanqing said, "Bomie Company now has a lot of capital reserves, so it is probably just about expanding. From their perspective, it is probably one of the choices that are used to make games, Internet, and laptop business directions."

Yang Yuanqing looked at Mr. Liu silently, wanting to ask what Lenovo should do now, but he couldn't ask at the same time.

Because of this matter, as CEO, he should be his job, but Yang Yuanqing really didn't have many ideas for a while.

Now Lenovo Group has begun to experience some ups and its performance is not very good. In the fourth quarter of this year, its net loss reached more than 52 million US dollars. It is conceivable how serious the situation is.

2008 can be said to be a turning point for Lenovo.

Before the fourth quarter of 2007, Lenovo Group still maintained its net profit growth, but by this point at the end of 2007, everything became a little different.

For many IT companies, the winter of 2007 was particularly cold.

The global financial crisis caused by the US subprime mortgage crisis continues to spread, and many international companies that have always been looked up to are shockingly on the verge of bankruptcy.

The international market is cold and overseas demand declines, all of which brings tests to Chinese companies that have just stepped onto the international stage.

For Lenovo, this challenge is particularly severe.

Due to the global economic slowdown, sales of global personal computer markets have shown negative growth, and the overseas businesses acquired by Lenovo M&A are mainly corporate customers. When the financial crisis comes, commercial customers will first cut IT spending.

Therefore, Lenovo is undoubtedly facing a difficult time when this economic winter is approaching. Although Lenovo is still ahead of its competitors in China and the global high-end commercial market and continues to gain market share, the huge impact of the global economic storm on these markets means that Lenovo, which has only four years of internationalization, will suffer greater damage.

As a global company, it should have been very stable, but I didn’t expect that it would be so coincidental that a global financial crisis began to break out this year, which caught Lenovo off guard.

In this case, Mr. Liu would return to the company and take over the related business.

Shi Yanagawa, an elderly man who is almost 70 years old, is still very respectful to come back in this situation.

This also sent out a signal that after Mr. Liu came back, he would control Lenovo's power of life and death, and the people below just needed to give advice.

"It's better to follow Lenovo's old ideas," said Yanagawa Shi, "after all, we have experienced many years of storms."

Lenovo has a logic of "three management elements", called—

"Build a team, set a strategy, and lead the team"

This model was also influenced by the simplicity of people in the era of Yanagawa Shi. Yanagawa Shi came through this way in many major decisions. Lenovo's performance is not good now, which means that there are problems with the current strategy, and the leadership team will also have some loopholes.

"The top priority is to rebuild the leadership team and re-formulate the strategy," said Shi Yanagawa.

What he said was both a response to Bomi Company and a response to the financial crisis that is about to spread globally in the future.

After Yanagawa Shi came back, he reorganized the leadership team, and this was the first step.

He is still very influential in the entire Internet industry now. As long as he returns, he can boost morale and confidence.

“My idea is to adopt a two-fist strategy.”

Shi Yanagawa clenched his fists and gestured.

"At the strategic and defensive level, we must protect the head and heart with our left fist, that is, we must consolidate two core businesses: China's business and global corporate customer business. These two businesses must maintain good profits to ensure the overall success of Lenovo.

At the strategic offensive level, use the right fist to attack to score points and seize the growth space of emerging markets and global trading markets, including consumer businesses and small and medium-sized enterprise businesses.

The new team and the re-defined global strategy live up to expectations. Lenovo's reform measures will be effective in the first quarter, and will be effective in the market defense of China and global enterprises, further consolidate their leadership and increase their share. In emerging markets and global consumer markets, they will continue to develop and grow."

"Then," Yanagawa Shi said gritting his teeth, "we will cut the cell phone department."

"Ha?" Yang Yuanqing was shocked.

Now Bomi Company is coming to attack our core business, and Lenovo's mobile phone department has just begun to achieve some results. In this case, we have to lay off the mobile phone department?

"It is not necessarily a good thing to have a stall that is too big," said Yanagawa Shi, both to himself and Yang Yuanqing, and to Bomi. "Our company's mobile phone business department is the most serious loss. It is still time to cut it off now and stop the loss in time."

The implication is that Lenovo does not have much business. In this case, it will lead to operational difficulties due to a financial crisis and the shrinking of the personal computer market. What's more, companies like Bomi are too open and need money everywhere. If one of the links collapses, it will easily affect the whole body and lead to a loss of the whole body.

"The next two years will be very difficult," said Yanagawa Shi. "I have consulted with my friends from the United States. You have a great impact on this financial crisis and it will last for a long time. Until now, there is no sign of improvement. Ome has already begun to release the money, but the stock market has not been boosted.

Due to the financial crisis, many people have no extra money to buy new laptops.”

Yanagawa Shi said with a smile, "Cao Yang and the others want to do it, so they can do it. After the market shrinks, their money will probably be wasted.

Now we can only retreat and defend first, grasp the customers in our hands first, and wait for the financial crisis to pass, and the company's situation should be better.

Then we will see if we need to do the mobile phone business back then.”

"Okay." Yang Yuanqing nodded. Mr. Liu's analysis was still very pertinent, and the amount of information he received here was much more accurate and huge. After all, Mr. Liu's friends are all over the world and there are many related channels. According to the strategy he formulated, there should be no big problem.

"I hope this financial crisis will pass sooner, and it is best not to affect China..." Yang Yuanqing said with some anxiety.

...

The return of Yanagawa Shizuo and the reorganization of the leadership team of Lenovo Group certainly boosted market confidence. On the second day after Liu President returned to Lenovo and announced the restructuring, Lenovo Group's stock rose by 10%.

This year can be said to be a miracle.

It also shows how huge Mr. Liu has influence on the Internet industry and how optimistic the capital market is.

Lenovo's change has been widely reported by the media, and many people see it as their strong response to Bomi's entry into the personal laptop market.

However, the media reports did not reveal much details related to Lenovo's future grand strategy.

This made Cao Yang not very comfortable.

"The popularity has increased," Liu Zhiping said to Cao Yang after seeing reports from relevant media and discussions from netizens, "but next we are playing famous brands."

"It's just clear cards," Cao Yang said with a smile, "It's just right that we have nothing to hide."

In fact, Cao Yang really wants to take the opportunity to see the attitudes of Lenovo's senior executives and whether they will adjust their existing notebook business in the future.

But it's similar to what he imagined-

Lenovo did not make any big moves, and they would do whatever they should do. Perhaps they were waiting for Bomi to take action.

Or maybe Lenovo still pursues a [stable] policy.

However, Cao Yang speculated that Lenovo's ultimate move that might be used to restrict Bomi was not Lenovo, but their allies-

In the relevant supply chain, do not supply to Bomi Company as much as possible, or increase the corresponding supply price.

But everyone opens the door to do business.

Bomi Company also has many of its own stable partners, so Cao Yang is not very worried about this.

Lenovo Group lacks its own hardware and software research and development technology. Their biggest competitive advantage now is the [global supply chain]. If they can make a breakthrough in this link, with Bomi's own design capabilities and software and hardware strength, they will definitely be able to defeat them.

The next day is to talk to relevant suppliers one by one.

...

On January 11, 2008, just as the global financial crisis was approaching and the world was shrouded in cold winter...

However, the annual meeting of Bomi Company was held in full swing, which was the largest annual meeting in the years since its establishment.

The annual meeting was held in the Workers' Sports Department, and the venue can accommodate more than 5,000 people.

There are more than 500 banquet tables on site alone.

But even at such a large scale, it is impossible to accommodate the entire Bomi company's employees.

You should know that the total number of employees of Bomi Company has now exceeded 70,000.

There are already more than 60,000 in China alone.

Others scattered in different countries around the world, in addition to R&D personnel, operation and sales personnel account for a large proportion of the number.

Cao Yang didn't consider it, after all, even if the company was willing to reimburse the travel expenses, it would be a bit too much to let others fly from the United States around half of the earth to attend a Bomi annual meeting that took less than 4 hours.

At that time, we will hold our own annual meetings, and Bomimi and Xingyue Company will hold its own annual meetings.
To be continued...