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Chapter 2 - Chapter 2: High-Frequency Sea Tactics

Xu Shenxue said he wanted to briefly make a few points, and the managers under him all picked up their pens, ready to take notes.

Xu Shenxue paused for a moment before continuing.

"Given the fast-cycle nature of the market, we need to increase the speed of research and development and mass production of new mobile phone models. Our goal is to launch a new phone with independent micro-innovation every week."

"When potential new products from competitors appear in the market, we should not waste time debating whether to make them or how to make them. Instead, we must directly absorb the advantages of multiple competing products, improve and integrate them into our own designs, and release a new phone weekly."

"Our focus should not merely be on new models or features but on maintaining a relentless pace of progress, continuously adopting and refining the strengths of others along the way!"

"This fast-paced R&D strategy is undoubtedly challenging, but difficulty is no excuse to hold us back. If the R&D department lacks manpower, we will hire more staff. If frequent overtime causes dissatisfaction, we will increase project bonuses."

"The administrative department must also ensure robust logistical support. Provide ample coffee, snacks, and late-night meals to colleagues in the R&D department free of charge."

"Meanwhile, the marketing department must collect and analyze market trends promptly and accurately, offering suggestions to the R&D department for developing new products based on market shifts."

"As for the production department, your responsibilities are critical. Ensure proper material supply, quality inspections, production safety, warehousing, and logistics. Producing multiple phone models and releasing them simultaneously will heavily strain the supply chain, production lines, and logistics. Stay vigilant and organized."

Having said this, Xu Shenxue paused, surveyed the room, and then continued:

"Launching new models at such a high frequency while maintaining production and sales for multiple models is undeniably difficult, but we have no choice!"

"We need to implement a high-frequency strategy—a sea of machines—to flood the market. This will ensure our channel partners know that Weiku Electronics offers the newest and most comprehensive selection. If customers need it, we have it. If they haven't even thought of it, we still have it!"

"We must stay ahead of our customers' expectations."

Hearing this, everyone present fell into deep thought. Xu Shenxue's words, while seemingly straightforward, carried immense strategic weight. It signified a major shift in the company's direction.

Bai Qiwen circled two key phrases in his notebook: "high frequency" and "sea of machines."

The strategy of launching a large number of phone models was not new in the mobile phone industry. Renowned international brands like Nokia and Sixin, as well as domestic brands like Spinach and Tianyu, often employed such tactics. They released dozens of new models annually, while continuing to sell older ones, creating a vast product lineup.

However, manufacturers in Huaqiangnan rarely adopted this approach.

For one, it required significant R&D capabilities. Even if core hardware wasn't overhauled, modifying applications, tweaking features, and designing new casings still required substantial effort, including updated schematics and production line adjustments.

Second, it demanded high production capacity—the ability to operate multiple production lines for different models simultaneously.

Most manufacturers in Huaqiangnan were small workshops without the resources for such a strategy. Even medium-sized companies like Weiku Electronics barely met the requirements to attempt it.

As for the high-frequency aspect, it was nearly unheard of among major brands. Designing, producing, and marketing a single model was already costly, so frequent replacements were impractical. Yet in Huaqiangnan, smaller workshops frequently churned out high-turnover products, following market trends with astonishing speed.

Bai Qiwen was uncertain whether combining high frequency with the sea-of-machines approach would work, but he thought it worth trying. The concept sparked a flurry of marketing ideas in his mind.

Putting down his pen, Bai Qiwen said, "Boss Xu, your perspective is truly forward-thinking. This high-frequency sea of machines strategy is enlightening!"

"As you said, if we maintain a comprehensive product lineup and stay ahead, it will greatly simplify negotiations with channel partners and OEM customers."

Xu Shenxue smiled. "Channel partners want a reliable, worry-free long-term supplier. Who wouldn't want to receive new products immediately when market trends shift and start profiting right away?"

While some executives remained concerned about R&D and production challenges, most were optimistic about the strategy's market potential. They acknowledged that while Weiku Electronics couldn't compete with major brands, it could stand out among the countless unknown brands in Huaqiangnan.

R&D Manager Xie Jianyong spoke up: "If this strategy succeeds, our wide product lineup could even allow us to open specialty stores or counters, just like the big brands."

"That would significantly enhance our branding and establish offline sales channels!"

The room brightened at this idea. Specialty stores, even small ones operated by channel partners, would elevate Weiku's reputation. Ordinary Huaqiangnan manufacturers couldn't achieve such a polished image.

Weiku's transformation had begun two years ago when it partnered with several medium-sized manufacturers to obtain a mobile phone license, moving away from producing black-market phones. They continued OEM production while establishing their own brand, "Weiku Mobile Phones."

In two years, Weiku had sold 400,000 to 500,000 branded units. However, its reputation was confined to Huaqiangnan. Beyond this small area, the brand remained virtually unknown.

Through the high-frequency sea-of-machines strategy, Weiku could amass a diverse lineup, potentially adopting the specialty store model to penetrate the broader market. Even if "Weiku" remained a miscellaneous brand, it could become the top-tier among such brands.

Higher sales prices and gross profit margins might follow. At the very least, establishing offline channels could bypass the exploitative middlemen of Huaqiangnan, capturing more profits and improving overall margins.

After finalizing the high-frequency sea-of-machines strategy and assigning preliminary tasks to each department, Xu Shenxue and Xie Jianyong headed to the R&D department on the first floor.

Weiku Electronics' factory was situated in a slightly remote area in the northern part of the city. The expansive facility housed multi-story workshops for assembling phones and producing basic components. Behind the factory lay a dormitory and cafeteria for employees.

Adjacent to the factory was a three-story office building where Xu Shenxue's office and other departments, including Administration, Marketing, and R&D, were located.

Upon arriving at the R&D department, Xu Shenxue glanced around but avoided disturbing the employees. Instead, he proceeded directly to Xie Jianyong's office.

"The success of the high-frequency sea-of-machines strategy rests primarily on the R&D department," Xu Shenxue began. "We lack sufficient manpower. Let me review the current team composition, and I'll coordinate with HR to recruit accordingly."

As Xie poured tea for Xu, he explained, "Our R&D department has 16 members. We're divided into three groups: the Software Group, responsible for developing software features; the Design Group, handling phone aesthetics; and the Whole Machine Design Group, which I personally lead, focusing on circuit board and structural design."

"Among the team, the two group leaders and I are seasoned veterans. Each group has a few core members, while the rest are support staff."

"Bring me their resumes," Xu instructed.

Today, Xu Shenxue wasn't merely there to discuss progress—he intended to allocate R&D quotas from the system to enhance the department's capabilities. Even if their current R&D might seem amateurish to major manufacturers, it was time to take the first step toward transformation.

(End of Chapter)