The God of Coding, Becoming an IT Conglomerate

59. Operation Amphibious?(2)

After hanging up the phone with Jo Jung-sik, Ho-young hurriedly put on a suit jacket.

The distance between Dell Korea and H&H headquarters is about 10 minutes.

I was thinking of going there right away.

smart-

Then someone knocked.

“Are you the director?”

“yes. there is.”

Miru opened Hoyoung’s door and lowered her head slightly.

“I have a guest, so I would like to ask if you have time.”

“I’m sorry, but I don’t have time right now, so please tell me to see you later, and I’m going to Dell Korea right now. Can I go with you?”

Hearing Hoyoung’s words, Miru tilted her head slightly.

“Dell Korea? Mr. Director, the person visiting now is Francis, the branch manager of Dell.”

“okay? Then ask me to come in.”

“All right.”

After taking off his jacket again, Hoyoung sat down on the sofa and waited for Francis.

“Hoyoung! Long time no see. Where were you going?”

“Nice to meet you. Francis. I was going to go to Dell Korea now.”

“Are you in my office?”

“yes. you’re right. I have something I want to ask about Myeongseong Electronics.”

Francis made a surprised expression.

“As expected, it is Hoyoung. The news is incredibly fast! The reason I visited today is to talk about Hoyoung and Myeongseong electronics.”

“You mean the rumors I heard are true?”

“I don’t know what rumors you’ve heard, but if you say that we offered a technical partnership with Myeongseong Electronics, it’s true.”

“As expected.”

As Francis casually sat down on the sofa, the secretary served tea.

Francis took a sip of tea and quenched his thirst.

“First of all, I apologize for making such an offer without being able to discuss it in the first place.”

“You don’t have to apologize. Didn’t I tell you that I would not be involved in management at all anyway?”

“Still, not just as a shareholder, but also as a business partner.”

“Then you just have to convince me. Why?”

Hoyeong’s words didn’t contain any feelings of displeasure or anger at all.

Francis said with a sigh of relief.

“It is to target the Korean market more aggressively.”

“how?”

“It has been over a year since I have already lived in this country. During that time, I worked diligently at Dell Computer, and I felt it painfully.”

“What is it?”

“This country is too exclusive to foreign companies. And it’s because they show a generous look to domestic companies. In particular, the influence of fame is really great.”

Hoyoung nodded.

As Francis said, the Korean market was closed.

And the ripple effect of Myungsung Electronics was enormous.

IBM, which currently ranks first in world stock price, sold far more computers sold under the name Myungsung Computer in the Korean market than PC profits sold under IBM.

“you’re right. That’s why IBM probably didn’t want to hand over its technology to reputation. If the technology transfer is completed, IBM’s PCs will no longer be sold in the Korean market.”

“That’s right. That’s what caused the reputational rift with IBM.”

“By the way, why did Dell offer to transfer the technology?”

Francis smiled softly.

“Even if we don’t do technology transfer, it’s our expectation that in a few years anyway, the renowned PC technology will catch up with the global market to some extent.”

“Um… that’s right. Technology is a law that is generous to latecomers.”

“But by chance, I heard about the reputational split with IBM, and we immediately thought we should strike first.”

“Do you play?”

“yes. Currently, PCs made by foreign companies are showing overwhelming performance, so Korean PCs are not a competitor.

“okay.”

Hoyoung thought for a moment.

‘It was the best choice for Dell and Francis, who can never know the relationship between me and Myungsung Electronics. If I had been a manager, I would have done the same.’

Dell’s decision made perfect sense.

The Korean PC market was now in the stage of explosive growth.

Riding along with the flow of famed electrons in time for the explosion was the best option at this stage.

I remembered that IBM gave up the Korean market too easily.

‘To grow in the Korean market, it is difficult to escape the shadow of fame. IBM plans to close the Korean market and focus on the Japanese market.’

If the original history had flowed, Myungsung Electronics, which received technology transfer from the past education PC distribution business, began to release PCs made with its own technology around the time IBM gave up the Korean market and began to focus on Japan, and in 1995 As the ‘Green Computer’ released around this time became a hit, it was expected to become an absolute powerhouse in Korean domestic PCs.

‘Is this the butterfly effect?’

However, Hoyoung watered the PC supply business, and at that time, Myungsung Electronics, which had not received technology transfer from IBM, was trying to contact Dell, who offered to transfer the technology just in time.

“Hoyeong, did we make a mistake?”

Francis asked cautiously.

Because Hoyoung’s expression looked very serious.

However, after thinking about it, Hoyoung smiled and said.

“no. I had something to think about. You made the right decision. It will be an opportunity for Dell’s share price to rise further.”

“Is that so? Fortunately, the.”

Francis’ expression brightened again.

At first, Ho-young said again that he would not be involved in management at all, but in the end he was the largest shareholder with more than 30% of the shares.

It was a situation where I couldn’t help but look at him.

“Then, specifically, what benefits does Dell Computer get in exchange for technology transfer to Myungsung Electronics?”

“It’s not clear because it’s still under discussion, but until the technology transfer is over, we plan to replace all IBM computers currently sold as ‘reputation computers’ with our computers. And among the various PCs that Myeongseong Computer will sell in the future, the higher trims will sell high-end models and workstations of Dell Computer as they are.”

“It’s a strategy to break away from the image of Dell Computer as a mid-priced brand and increase sales of high-end models.”

“you’re right. At the same time, if Dell Korea instills an image of being with Myungsung Electronics, Myungsung Electronics’ loyal customers will surely look favorably on Dell Computer.”

Francis had a point.

However, Hoyoung said with a slightly disapproving expression.

“Then what are you going to do after that?”

“After that?”

“After the technology transfer is complete. When Myungsung Electronics created its own PC at that time, will consumers in the Korean market find Dell Computer?”

“I think there will definitely be demand for high-end models. Of course, at that time Myungsung Electronics can produce and sell high-end models, but there will be an image of Dell Computer that has been built up until then.”

Francis’ face looked confident.

However, Hoyoung slightly shook her head.

‘After all, no matter how long you’ve lived in Korea, you’re still a foreigner. It’s naive.’

Hoyoung thought that Francis’ confidence was groundless.

“As Francis said at the beginning, Korean consumers are closed to foreign companies. In such a situation, is there any reason for consumers to use Dell computers instead of Myungsung computers?”

“Hoyeong is well aware that consumers will continue to use the brand in the future if they are satisfied with the brand they have been using. If Dell Computer satisfies consumers in quality…”

“Francis.”

Hoyeong silently called Francis and stopped him from continuing.

Francis looked at Hoyeong with eyes full of questions.

“What Francis says is absolutely not wrong. That’s what decades of research and statistics on the US market tell us.”

Francis nodded silently, and Hoyeong continued talking while looking at Francis like that.

“But this place is a little different. We need to analyze the age group and propensity of buyers. What age do you think Francis is for current PC buyers?”

“If you are talking about personal computers for home use, not business use, we see people in their early 20s and early 30s as the main customer base.”

Hoyoung shook his head slightly as if he knew Francis would say such a thing.

“Wrong. In particular, those in their early and mid-20s are at a level that can be excluded from statistics altogether.”

“This is a result calculated through every customer who comes to our Dell Computer store. You can’t be wrong.”

“If you think of the age range Francis mentioned as a statistic of PC users, not purchasers, it would be almost the same.”

“Aren’t buyers and users the same story?”

“It is completely different. It would be appropriate to view buyers as being in their late 40s to late 50s. In our Korean market, low-end computers currently cost around 1 million won, and high-end PCs cost close to 4 million won. You have to think that the ones who can use such a large amount are the parents of users in their late 40s, as I said.”

At Hoyoung’s words, Francis’ face was still full of questions.

“Are you saying there are very few buyers in their twenties?”

“There may be, of course, but not in such a large proportion. First of all, the average wage in Korea is lower than in the United States, so it is a burden for people in their 20s to buy, and above all, people in their 20s enter the workforce three years later than in other countries.”

“What is the reason for the 3 years delay in entering the society?”

“The army.”

“ah! army!”

Francis finally felt like he could understand Hoyoung’s words a little.

“In addition, Koreans respect the wishes of their parents even when they reach the age of majority. So, even if there is a brand and model you want, you are more likely to use the one your parents bought for you.”

“okay.”

“yes. When buying a PC, Prestige Electronics’ PC and Dell Computer. What kind of computer do you think conservative Koreans in their 40s and 50s will use? Of course, assuming the performance is similar.”

“Of course he would choose fame.”

“you’re right. No wonder Francis did not foresee this outcome. I could understand this because I am Korean.”

“no. It is natural to understand the local culture and take appropriate strategies, but I seem to have been conceited with the recent series of successes. It’s embarrassing.”

Francis bowed his head to Hoyeong and continued.

“thank you. Then, since we haven’t even had a proper meeting yet, let alone signed a contract with Myungsung Electronics, would it be better to withdraw our decision here?”

“It is not. There is no need to avoid it.”

“then···?”

“You have to use what you can eat.”

At Hoyeong’s words, Francis became a little surprised.

“Are you using it?”

“Actually, this is the method I was going to use a little later, but I think it’s better to use it now.”

“How?”

“For now, the technology transfer should proceed as planned, but slow it down.”

Hoyeong continued talking and took a sip of tea to see if her throat hurt.

“And, during the technology transfer, we will create another Korean subsidiary.”

“Is there a need to create more Korean subsidiaries?”

“sure. Of course, Myungsung Electronics’ brand has a ripple effect. But in just two years, there will be countless companies willing to sell PCs.”

Hoyoung’s words were true.

In addition to fame, large corporations such as Daehyun and Daewoo are soon entering the PC business and are sparing no money on R&D. Because I also uploaded .

“Like being one of those companies, but maintaining a unique position among them.”

“But didn’t you just say that Korean brands will eventually be chosen?”

“The important thing is not whether it is really a Korean company. It’s about whether it looks like a Korean company.”

“then?”

“The low-end models imported from Dell Computer are once again sold in the Korean market through the Korean subsidiary. The name of the Korean corporation is… A Hanyang computer would be appropriate.”

At Hoyoung’s words, Francis looked confused.

“Would a simple method like that work?”

“sure. Rather, it works because it is simple.”

Hoyoung smiled slightly at Francis’ expression.