Extraordinary Genius - Chapter 622
Chapter 622 – Setting the Industry standards together (Part 2 of 2)
This was like bargaining at a bazaar. You kept saying thatthis thing is not good, but you are still staying there. This is a tactic for negotiation.This was what Thomas was doing.
Thomas smiled. “Then I shall not say anymore. Before I comehere, we had discussed in our meeting. Philips and Wind and Rain Electronicswill research and develop a writeable DVD together. We will develop a smalldevice to record data into a DVD disc and set the standards for the DVDindustry.”
This was what Feng Yu had expected. Philips was really aformidable partner.
“Let’s talk about the details.”
“Your company had achieved good results in China, butcompared to us, you are still far behind. Our research lab is several timesbigger than your company. We have more researchers and experts then yours. So,I suggest that we take charge of R&D. Your company had made significantcontributions to this technology. So, when we set the industry standards, weshould name it as Philips – Wind and Rain DVD standard.”
Go to hell. Are you treating me as an idiot? Philips – Windand Rain DVD standard might sound like cooperation. But from looking at thename, people will know that we are just helping Philips as a follower. We arethe ones who own MPEG-II technology!
Just like Yang-Mills theory. Yang Channing’s name is infront, followed by Robert Mills. At that time, although Robert Mills receivedhigher recognition, from the name of the theory, one could tell who contributedmore in theory. Whoever contributed more, its name will be in front.
“Mr. Thomas. I think you have misunderstood one thing. Weare the ones who developed this MPEG-II technology. We also own the patent forthe first generation of technology. This technology is the core of the DVD Yes,your company might have more scientist and researcher than us. But are theybetter than us in this field? Can you all concentrate on researching on onetechnology? We are different. We are the experts in this field, and we onlyresearch into this MPEG technology. I dare to claim that no other companies arebetter than us when it comes to this field. Also, the research on writeableDVDs, we will also be ahead of other companies. You all should be the oneaccommodating to us and not the opposite way!”
Damn. Know your place!
“Mr. Feng, don’t forget that the industry standards set byus will be accepted by the consumers easier than your company. Did your companyset the standards for VCD? You all only had marketed the VCD well. You all hadthe chance to set the industry standards for VCD. If we are the ones whodeveloped this VCD, the current VHS players will already be obsolete.” Thomastook a sip of green tea.
Philips did not set any high requirements for thisnegotiation. When Thomas arrived in China, he decided to set higher standards.But after looking at Wind and Rain company’s culture, he chose to stick withhis company’s original requirements. He cannot be too greedy.
Thomas’s initial plan was to let Philips set the industrystandards. Both companies will conduct research and development together andshare all related technologies. If he could get a stake of Wind and RainElectronics, it would be better. After chatting with Feng Yu, he decided togive in and followed his company’s directions. Both companies’ will be used inindustry standards. But Philips must be in front.
Feng Yu was not happy with this decision. You want to putWind and Rain Electronics name in front of Philips? Are you kidding me? Do youthink Wind and Rain Electronics is bigger than Philips?
“Mr. Thomas, are you thinking that Wind and Rain Electronicsis not big enough to set the industry standards?”
Although Thomas felt this way, he did not reply Feng Yu. Hisfacial expression had shown what he was thinking.
“If our Wind and Rain Electronics can set and implement theindustry standards ourselves, why should we cooperate with Philips? Mr. Thomasshould also know that this MPEG-II technology is jointly developed by Aiwa andus. Then what do you think if Aiwa chooses to work with Japan’s Sony instead? Don’tyou think it will be easier to set the industry standards if Aiwa cooperateswith Sony? Don’t forget that Aiwa had worked with Sony for quite some time inthe past.”
“We shall not say how much losses will Wind and RainElectronics face if you asked Aiwa to set the industry standards. It isimpossible for Aiwa to work with Sony. Aiwa had snatched the Walkman marketfrom Sony and Aiwa’s market share of the Walking market is almost 70%.Currently, Sony is only left with less than 20% market share, and Aiwa isstarting to snatch the CD player market share from Sony. Aiwa’s biggestcompetitor is Sony. Why would Aiwa choose to work with Sony?” Thomas smiled andasked Feng Yu back.
Before Thomas came to China, he had done his homework. Thisinformation was not any secrets. He knows about these when he asked around.
Oh, you have done your homework? But the more you know, theeasier it is for me to hoodwink you.
“You are right, and it is also because of the things yousaid. If Aiwa approached Sony to collaborate and offered to join hands tocontrol the Walkman and CD player market, do you think Sony will reject thisoffer?!”
Thomas’s face changes. Indeed, Aiwa was willing to give upsome of the Walkman and CD player market share to Sony, Sony would surely workwith them. But Thomas did not know it was impossible for Sony and Aiwa to worktogether in this lifetime!
Heitaro Nakajima had insulted Sony’s Acting President NorioOhga publicly in front of the media before. Norio Ohga will never agree tocooperate with Aiwa. If given a chance, he would want to step all over Aiwa! Ifit weren’t for Aiwa disrupting his plans, he would be the President of Sonynow!
“Mr. Feng, Aiwa is Aiwa and not Wind and Rain Electronics.If Aiwa were to set the industry standards, what benefit will Wind and RainElectronics get? I know Wind and Rain Electronics had been collaborating withAiwa and shared many technologies. But are you willing to help another brandgrow?” Thomas decided to use branding to persuade Feng Yu.
“Oh, I forgot to tell you that I am not only the founder ofWind and Rain Electronics. I am also the major shareholder of Aiwa. To me, bothcompanies are the same. In fact, I own more shares in Aiwa than Wind and RainElectronics. Didn’t you notice that there is a sub-brand under Aiwa which is inChinese?” Feng Yu smiled and replied.
What? Feng Yu is the major shareholder of Aiwa?!
That means both companies are the same as Feng Yu. No wonderboth companies cooperated in so many projects and Aiwa was able to open up theChinese market.
Damn. This way, Philips will not have any advantage in thisnegotiation.
“Then how do you want to cooperate?”
“Simple. Wind and Rain Electronics will be doing the R&D,and Philips will assist us. We will set the industry standards together, and itwill be called Wind and Rain Philips DVD standards. There should be othercompanies that are working with Philips. Get them to recognize this standard.We will own the writeable DVD technology patent, and Philip will enjoy lifetimeauthorization to use this technology. At the same time, we will authorizePhilips to use our MPEG and VCD technologies for free. We will share the marketwith you all.”
The patent belongs to the other party, but Philips will getthe rights to use the patents. This deal was not beneficial to Philips. But ifthey do not agree, Philips will be kicked out of this game. They will not evenget a bite of the cake.
“Mr. Feng, I need to discuss with my headquarters before Ican give you an answer.” Thomas’s proud look on his face was long gone. Now,Feng Yu had the upper hand.
Feng Yu stretched out his hand: “Of course. I will wait foryour good news. If Mr. Thomas does not mind, stay at our Wind and RainElectronics hotel tonight.”
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