Extraordinary Genius - Chapter 619
Chapter 619 – Philips request for collaboration
The press conference was not considered a success as manyelectronic giants did not attend. The ones present were their representativesin China. Most companies did not expect Wind and Rain Electronics to introducesomething good despite them introducing the VCD previously.
But when the companies knew Wind and Rain Electronics hadsuccessfully developed MPEG-II technology, all of them were stunned! They hadbeen researching this technology after they saw the VCD. They wanted to usethis technology to win Wind and Rain VCD and Aiwa VCD. But before theirresearch was completed, Wind and Rain Electronics had introduced this newtechnology!
How was this possible? Wind and Rain Electronics was worthso little compared to the other electronics giants. How could they develop thistechnology so fast?
The companies compared Wind and Rain’s MPEG-II technologywith their research. Both were similar, but before they could complete theirresearch, Wind and Rain were already setting the industry’s standards!
After this press conference, all the electronics giantimmediately response. Sony immediately held a conference to announce they hadalso developed this technology. But they did not release the news to thepublic.
Heitaro Nakajima immediately calls for a press conference.He said Sony only know how to imitate Aiwa. Sony had been following Aiwa’sfootsteps and had never overtaken them! Sony had copied Aiwa’s Walkman, CDplayers. After Aiwa introduced VCD, Sony still wants to copy them!
Sony’s top management was furious!
What copy? We are also conducting our own research on newtechnologies. We are also researching new MPEG technologies. Our research hadoverlapped, but Aiwa cannot claim that we are copying them. How can we developthis technology by copying within this short period?
We also did not copy your Walkman and CD players. HeitaroNakajima was too shameless!
Wind and Rain Electronics immediately announce that they hadregistered MPEG-II technologies. Sony should not try to copy theirtechnologies. It will be against the copyright laws!
There were rumors that Sony’s President, Norio Ohga, hadscolded the head of R&D in his office that day. He was so furious that hesmashed an antique vase.
Norio Ohga instructed Sony’s R&D department to researchthe opposite of what Wind and Rain Electronics technology. Wind and Rain hadused a single side and double layer structure for its technologies. They willdo the opposite!
But when Sony was about to start their research, Toshibaannounced they will be introducing a new technology which was double layer anddouble sided. They were ahead of Sony!
Double layer structure technology was the latest technology.Does Sony need to develop a triple layer structure technology? What’s the useof it? A disc to store 5 hours of video and audio? The purpose of this disc wasto store songs and videos. What’s the use of having such high storages? Itwould be a waste!
But Sony immediately thought of collaborating with Toshiba.They want to use this Double layer and double-sided disc technology as theindustry standards. This will counter Wind, and Rain Electronics single sideddouble layered technology.
Sony and Toshiba were top consumer electronics companies inthe world. Wind and Rain and Aiwa could not compete with them in terms ofassets. Aiwa and Wind and Rain had been doing well these few years. Aiwa’ssales had reached over 100 billion Yen, and their profits were over 10 billionYen. But when converted to USD, its profits were not more than 100 million USD.How could they compete with Sony and Toshiba?
If Sony and Toshiba join hands to set the industrystandards, they could prevent Wind and Rain Electronics’ technology to beaccepted by the industry!
So, Norio Ohga went to Toshiba’s headquarters to meet withToshiba’s President. It was unclear what price he paid, but Toshiba agrees toshare their technologies with Sony.
“Manager Feng, our technology standards might be replaced byToshiba and Sony. They had strong foundations, and it would be easier for themto set the industry standards with their technologies.” Jiang Wanmeng calledFeng Yu to ask for help.
This was reality. Those two companies had set many industrystandards before, and Wind and Rain Electronics were not as influential asthem. There was no way to compete with them.
Once both companies had set the standards for this industry,they will dictate the direction of the technology research in the future. Itwill not be good for Wind and Rain Electronics and Aiwa.
Most of the profits would be earned by these two companieswhen they enter the DVD era. This was not what Feng Yu wanted!
The only solution was to work with a top consumerelectronics giant. Many companies approached Wind and Rain Electronics forcollaborations. One of them was Pioneer. The market leader for Laserdisc. Theyhad gone to Heitaro Nakajima and expressed their intentions to work with Aiwaand Wind and Rain Electronics. They want to stop Sony and Toshiba from settingthe industry standards.
Pioneer was one of the big names in the industry. It was anexcellent choice to work with them. But Pioneer was too greedy. Not only theywanted the authorization to use the MPEG-II technology, they still wanted toshare all the VCD technologies. In return, they would share their Laserdisctechnologies with Wind and Rain electronics and Aiwa.
Feng Yu immediately told Heitaro Nakajima to reject them.What a joke? LD technology will be outdated soon. Currently, Pioneer was notthe only company who had this LD technology. How can they use this technologyto exchange with us? They still want to be authorized to use MPEG-II technologyfor free?
Without Pioneer’s support, Wind and Rain electronics and Aiwawere at the losing end against Sony and Toshiba. They will not be able to setindustry standards.
But at the time, an Electronics Giant approached Wind andRain Electronics. This company was Philips.
Philips impression for many consumers was shavers. ButPhilips started off selling lightbulbs! It made a breakthrough in radiotechnology later. They were one of the first few companies to introducecassette music recorder.
Of course, it was Philips X-ray tubes that made them famous.It was used on medical devices, and Philips was one of the main competitors ofSiemens in the medical devices industry.
Philips most successful product was the shaver. Before theend of the second quarter of 1994, Philips had sold more than 250 millionshavers globally. It was way ahead of other brands.
Many people were also unaware that Philips was the inventorof the LaserDisc and optical communication system. Many music lovers shouldhave heard of a record label PolyGram. It was also set up by Philips.
Digital Compact disc was also invented by Philips. Philipswas also good at transistors and integrated circuits and chips. As such, theirtelevision was widely popular all over the world.
A few years ago, Philips had a restructuring. The companywas streamlined to have better growth.
When Philips saw Wind and Rain Electronics introduced theVCD, they also start to research in this area. But sadly, they were like Sonyand the rest of the companies. Their R&D was researching several fields atthe same time, and this leads to slower progress. Their speed could not becompared to Aiwa and Wind and Rain.
Now, Wind and Rain Electronics had successfully developedMPEG-II technology and will be introducing Super VCD soon. Philips also had goodtechnologies when it comes to compressing technology. They thought it would bebest to collaborate with Wind and Rain electronics to set the industrystandards. Together, they would be able to beat Toshiba and Sony!
So, the Vice president of Philips came to China.
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