Reboot 2003

Chapter 134 041: The Lightning Rod Effect and Investor Mentality

Sun Xiaomei doesn't have much opportunity to express herself on weekdays, but she has been a CEO for a long time, but she has some experience. She looks at the financial report every day and writes reports to her boss, and she does see some problems.

Boss Chen asked her: "So why read the financial report?"

"Although carrian CRBT gave a lot of money, it has no future. After all, everyone still doesn't want to be poached for two or three days, and the company will disappear..."

Boss Chen asked again: "What about Galaxy Software?"

"I don't make money anyway, so everyone can work hard only after the financial report is made."

Boss Chen said inexplicably: "You are quite experienced as a CEO."

Sun Xiaomei, a hearty and straightforward girl from the Northeast, didn't hear the boss's other intentions: "It's not bad, boss, do you have anything else? I'm fine, I'm going to a meeting."

Fortunately, although Boss Chen is a suspicious primary school student, as a primary school student, he would not use too drastic management methods. He just said, "Don't worry about this, just keep the financial report yourself! Compared with this, you should deal with this list..."

"The list... Wow, who collected this? Work desertion? And Mr. Li, hasn't he done a good job recently?"

"Let's forget about Li Jian. You should look into the other people. Although poaching is very serious, personnel optimization is also very important."

"Okay, I'll deal with it right away..."

Sun Xiaomei walked away anxiously like a squad leader holding a whistle-blowing note from the class teacher. Everyone was busy with their own business, and they could get off work normally if they had nothing to do. I think this incident should end soon.

But the boss, Chen Qin, lay on the back of the chair and began to meditate...

Things seem to be resolved, of course, 'Don't panic' is indeed nonsense.

Because it wasn't said in person, the effect has to be discounted, and it seems that everyone feels a little baffled... This is also a normal reaction.

However, when a company encounters a crisis, someone really needs someone to say this. Sun Xiaomei is just a white glove, and Lao Xu has been abroad all year round. When things come to an end, Chen Qin, a primary school student, can only speak for himself, and this kind of countermeasure itself is an act of consumer authority. It is difficult for him as a primary school student to say that he has any leadership qualities.

But this line of thinking itself should be correct - judging from the results, it is almost enough for him to say this.

After all, even Sun Xiaomei could see that the crisis in this matter was not serious from a management point of view.

Carriand CRBT is indeed gaining momentum, but now the industry structure has taken shape. Carriand CRBT’s investment seems scary, but in fact, it has to be used in the right place to really turn it into an advantage.

The company’s exclusive buyout contract had quite harsh savings clauses. Warner Records had honestly admitted that they had breached the contract before. This time Carrian CRBT has money and they don’t want to poach these hard nuts. The contracts they pried away were only the CRBT business agency contracts with some small and medium-sized record companies. These contracts were not Galaxy Software’s main profit channel in the first place.

As for poaching people away...of course it's a bit annoying, but the future of Carrian's CRBT industry is unclear, and the shares given are not as high as Galaxy Software's incentive plan.

Galaxy Software has a good momentum this year. According to the agreement signed by the boss with them in black and white, at the end of this year, they will give 25% of the shares to the independent Galaxy Music Team.

Of course, everyone has different expectations about the future. Apart from the staff, there are even more important singers. As long as the money is enough, singers do not have a non-compete agreement.

But after a few days, none of the singers who had been rated as excellent, those who were in charge, and those who had signed artist contracts in the Yanjing branch had indeed left. Those who were poached were actually just ordinary low-level employees.

From this point of view, Carrian's CRBT method is really good. It spent a small amount of money to make people panic inside the galaxy software. The damage caused by this "offensive" is actually more on the spiritual level.

And this is what is usually referred to as a 'commercial war'.

When an office worker sitting in the office and working hard sees a barbarian waving banknotes rushing towards him, he will of course be shocked when he sees it for the first time——

For an inexperienced ordinary person, the most frightening thing is not that the other party has money in his hand, nor is the other party's methods terrifying, but that the other party is hostile to him. Maybe the barbarians have not caused much damage at the current stage, but what about in the future?

As the counterparty, the way to deal with this kind of thing is actually very simple, that is, "don't panic".

As we all know, the core of management is to deal with interpersonal relationships, and most of the means in business wars are to 'destroy the interpersonal relationships of rival companies'.

In the face of this kind of opponent who is actually only attacking at the management level, there is a standard way of dealing with it in management science, which is called the 'lightning rod effect'.

It means that when the lightning strikes, it is unrealistic to rely on the building itself to resist the lightning.

In order to reduce losses, the lightning rod at the highest point must channel the lightning to the professional handling team, try to channel the crisis, and isolate as many irrelevant people as possible, so as to minimize the impact of the incident.

To sum it up is 'everyone don't panic'.

Although wages are raised, meetings are held, and heart-to-heart talks are held...

This approach might work, but that's for another day.

When things came to an end, Boss Chen came back from the summer camp all the way, said such a comforting word that seemed unnutritious, and then didn't do anything superfluous... This is actually the best way to deal with the crisis.

At least a few executives have stabilized... Next, they can continue to recruit people and resume work. After the storm passes, the competition between the two sides will naturally return to the original track. At that time, it is time for Carrian CRBT to accept the recruitment.

Thinking of this, Chen Qin heaved a sigh of relief. The brutal direct competition between two competing companies... It's not the first time he has experienced it, and he has seen it many times from the perspective of a third party;

Compared with Xinhui Company, the rank of carrian CRBT is actually a bit lower, but because Galaxy Software does not have such strong intellectual property barriers as Kuaikan Media, so its defense is relatively weaker.

But Carrian CRBT’s methods were really not very good. When he first heard about the situation, Chen Qin specially told Lao Xu to return to Shencheng immediately. No matter what, Carrian CRBT had 200 million US dollars, which was enough to pose a threat to the current industry structure.

On the way, I continued to watch the follow-up news, but found that Carton CRBT did not actually come up with any further business strategies except for these old three. From this point of view, this opponent seems to be nothing to worry about.

However, thinking of the carnival color ring, Chen Qin thought of what they did at the beginning.

The CEO personally went to Galaxy Software to engage in wiretapping... This sounds absurd, much more ridiculous than the malicious competition that followed.

But in Chen Qin's view, this is actually a very clever strategy... At least when Chen Qin saw it, he felt a little headache and asked his subordinates not to respond to this matter.

In the end, the news spread, maybe it was someone from the company, maybe it was from the police, maybe it was someone from another company in the office building, or it was spread by Carrian CRBT itself.

In short, within two days after that, Carrian CRBT received the news of a large amount of investment... There is no evidence that the two things are related, but if you look at it from the standpoint of investors' interests, the logic of this matter is actually very clear——

Today's Carrian CRBT is just in its infancy, and the way to accept investment is naturally "venture capital". The investor contributes money, and Carrian CRBT contributes.

For the original Carrian CRBT, what they get is not the money itself. On the one hand, start-ups need investors to share the risk. On the other hand, as latecomers, they have to invest more resources to seize market share. This is beyond doubt.

For the investor, "I contribute money and you contribute" is of course a needless idea.

However, if we go a step further, today’s times are already different—the financial revolution in the 80s changed many things. After that, the investment nature of financial products such as equity has obviously overwhelmed the production nature.

If you go to the street and ask stock investors what they are doing, [-]% of them will probably answer 'to make money'. Whether it is short-term or long-term, the focus is on 'speculation'. As a financial product, the value of equity is not in production, but in circulation.

Now this concept has become a consensus in the secondary market, and it is certainly not exempt from the primary market—that is, the market for companies that have not yet had time to go public to raise funds.

From the perspective of circulation, the investment risk in the primary market is very high. If you invest money in it today, it may be transferred away by tricks or digested by fraudulent accounts in a blink of an eye. The cost of supervision is too high. In addition, the production and operation capabilities of enterprises in the primary market are too weak. Therefore, before the Internet boom in the millennium, venture capital was relatively production-oriented.

However, with the rise of the Internet industry and the further formation of the legal infrastructure, at least some of these changes have taken place in the venture capital environment in the Internet field... Of course, this change is not mainly due to the motivation of investors. After all, for investors, whether they want to withdraw from the IPO or run away after two rounds, the money that producers get is no different.

However, if you look at today's carrian CRBT from an investor's point of view, there is really no reason not to vote——

First of all, the CRBT track is very profitable, and venture capital generally chooses investment targets based on industry prospects. Although Carriand CRBT is not doing well now, it is the No. 2 track among newcomers, and this track is indeed very attractive.

Secondly...Carrian CRBT can’t beat Galaxy Software, but for investors, there are many reasons for this. They have money in their hands, and money is the means of production. After a large amount of money is injected, the decline of Carrian CRBT may be reversed.

The third is the basic nature of financial products, that is, buy low and sell high.

The reason why venture capital is attractive is that start-ups have a low starting point and greater room for appreciation. However, they are also start-ups, and their valuations are higher if they develop smoothly. The boss has just been caught in the trap, but it is a window for bottom-hunting, which may increase investors’ willingness to invest.

Of course, in addition to this, there is the most important point - although there are various concerns in the financial field, for start-ups, production and operation are unavoidable problems.

Carrian CRBT went to the galaxy software company to eavesdrop at this time. It sounds a bit embarrassing, but at least it shows that the company has a sense of commercial competition. After all, if they want to develop now, they must have the awareness to compete with the leader of galaxy software.

On this issue, no matter how extravagantly written the business plan is, it seems to investors that it is more convincing to go to eavesdrop and be caught by the other party.

Although the behavior itself is a bit stupid, isn't it because Carrian CRBT has no money?When you have money, you can use more effective and legal means.As long as the attitude is correct, the solution can always be considered slowly. For investors, this incident can actually show that Carrian CRBT has the courage to challenge the industry's first, which is a huge plus.

In short... I don't know if I thought of it myself, if someone gave me advice, or if it was just a mistake.

After the farce performance of this "real business war", Carriand CRBT got investment...

It's also thanks to the fact that Carriand CRBT is really stupid, and CRBT is an emerging industry that seems to have a relatively low upper limit and is still in a chaotic period.

Investors are willing to spend money, but they will not coerce everyone to burn money together like e-commerce, AI or group buying, and c2c super tracks.

Carrian CRBT has 200 million US dollars, which is a lot less than a lot, and the threat is actually not that big. After this successful response, there should be no other problems.

but……

There was a faint worry, and Chen Qin thought for a long time before continuing to work.

Although the company can communicate at any time through email and chat software, smartphones in this era are actually quite easy to use.

But there are also some personal contacts that have not been answered. For example, Mr. Lei - he was very busy at Shonan Taiwan recently. When he heard that there was an accident with Galaxy Software, he quickly asked Mr. Chen how it was... Although the news was three days ago, Chen Qin still replied very well.

(End of this chapter)