[Chapter 528: Price War]
George Bush Jr. finally understood through his father's explanation. While energy issues weren't a big deal for the U.S., Europeans took them very seriously.
Especially the French; during the last century, they had vast colonies in Africa. As their colonial system crumbled, they had to budget carefully.
Openly occupying places wasn't appropriate, but maintaining influence was absolutely crucial. At the very least, they needed to ensure their energy supply.
William White was just a businessman, incapable of going head-to-head with the French. It made sense for him to keep a respectable distance. As for whether the CIA agents were truly isolated, no one cared.
...
"Sir, the prices for memory sticks have been pretty unstable this past week."
"Tch, is it those Koreans pulling tricks again?"
"Yeah, their wholesale prices are 5% lower than ours, and they seem to be on a downward trend."
"Damn, why are these guys such cheapskates? What's our profit margin?"
"Less than 30%. After the second-phase workshop is in full swing, we should be able to maintain some profit space."
"Immediately drop the price by 35%. If they want a price war, we'll give them one."
"Sir, if we do that, we're gonna take a serious hit."
"Ha! This isn't really about loss; can't you see? They plan to crush us. If we back off, they'll dominate the market."
"Sir, if the Koreans follow suit, do we need to keep going?"
"Of course. However, you can prepare for it. Once prices hit a certain level, we can look into acquiring Samsung's products."
"Okay, I'll get right on it."
Just when the memory market was stabilizing, the Koreans jumped in to stir things up. It was tough for White, but the others were really feeling the pressure.
It was downright ludicrous to see prices drop under conditions of high demand. While the Koreans could barely hold on, American companies were facing disaster.
And of course, their troubles were just beginning. Within a few days, memory prices began to plunge, dropping drastically.
...
"President, those Americans have gone crazy. At these prices, they're starting to lose money."
"Don't worry about them for now. How are the Japanese responding? Have they reacted?"
"Yes, they've been very aggressive with their price cuts."
Lee Kun-hee was torn. Taking advantage of price cuts to increase market share was their strategic plan. They had initially intended to turn the tables in two years, but now, it seemed impossible to achieve that.
"It can't be! If this price holds, the Japanese won't last long. Go check and see what's going on."
Lee Kun-hee didn't care about the losses; he was more concerned about whether his plan was going to fall apart.
William White's reaction exceeded his expectations. Clearly, White's little strategy had drawn unwelcome attention from the other side.
Lee Kun-hee lacked the confidence to battle it out with that cunning guy. Of course, Samsung could keep dropping prices as long as it meant defeating the Americans and the Japanese. That would give them the pricing power.
...
The semiconductor market was in chaos; not only the Americans but also the Japanese were unwilling to back down. They had already been blindsided by the Americans; if they fell victim to the Koreans, it would be an embarrassing disaster.
"What? An anti-dumping investigation? Damn it, it was William White who cut prices first!"
"President, our prices are indeed below the cost line, but so are those of the Americans and Japanese."
"Damn, can't they have a shred of dignity?"
"They're acting ridiculously, and we have some intel that William White's farm has significantly lowered its export prices. Their beef prices are only a quarter of ours."
[T/N: South Korea has beef import quotas and high tariffs to encourage local farmers. As part of the international trade agreement, they relaxed them in 1990. Our MC used the gold medal scandal from Olympics and pushed it to happen in 1988.]
On hearing this, Lee Kun-hee trembled with rage; he had overlooked this issue. William White wasn't just a giant in the semiconductor industry; he was also a significant farm owner.
William White knew full well that with state capital backing him, a simple price battle would never take down Samsung. To gain an edge, he needed to attack from two fronts.
So you think you're the only ones who can engage in dumping?
I can do that too.
...
"William, your beef prices are ridiculously low! Man, a lot of farmers are complaining."
"Hmph, they're a bunch of idiots. The beef I'm selling comes from Australian farms; what are they complaining about?"
"Okay, but what's your point?"
"The price war between Samsung and me is completely unfair. They pretend to be a private company, but they're state-owned. Since I can't win, I naturally have to use other means."
"All right, you're really shameless. I bet we won't be able to export our beef much longer."
"Ha! That's fine; it looks like DuPont's lobbying group will be busy again soon."
William White's logic was that no matter how cheap the semiconductor prices were, he could recoup those losses from other sources.
*****
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