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50.84% Rebirth of the Strongest Tycoon / Chapter 780: Chapter 780: Developing an operating system

Kapitel 780: Chapter 780: Developing an operating system

On May 8th, a piece of news made it to the front pages of major American newspapers, attracting huge public attention.

It was the conclusion of the lawsuit between Turner Broadcasting and the US Communications Commission. The court ruled in favour of Turner Broadcasting, and the US Communications Commission was not allowed to prevent Turner Broadcasting from using satellites to set up a television network.

Ted Turner, who was willing to risk everything, had achieved a temporary victory. Coupled with the capital of Xia Yu and the assistance of the Jiuding News Agency, Ted Turner's plan for a wireless news network would be a smooth path.

Next, it would depend on how Ted Turner implemented it.

Xia Yu made a special phone call to Ted Turner to congratulate him.

...

The next day, Xia Yu once again went to Seattle Computer Products and held the first formal senior management meeting.

Inside the meeting room, Xia Yu scanned the faces of the crowd with his eyes. Satisfied with their full mental state, he said loudly, 'Everyone is here, so we can start the meeting now.'

'Over the past few days, I have also learned about the company's business, and I can say that it has developed quite well.'

Hearing this, many of the senior executives couldn't help but smile.

However, immediately afterwards, Xia Yu's words made their smiles freeze, and they could only hear Xia Yu say, 'However, none of these businesses are outstanding for our company. Even for the best businesses, we do not have an absolute advantage, and there is still competition.'

'What's more, the market capacity for large and small computer software businesses is small, and the market growth rate is slow. Even if our company achieves an absolute advantage in these businesses, the company's revenue will only increase by two to three times, and this will take more than three years, and this is still the best judgment I can make.'

In fact, Xia Yu's words are relatively euphemistic. The software market is full of strong players. More importantly, whether or not a business can be won is often not determined by how good the product is.

IBM is the current market leader in the mainframe computer market, and Digital Equipment Corporation is the current market leader in the minicomputer market. These two companies can be said to dominate their respective fields. Although there are still competitors, such as Texas Instruments, the gap is still relatively large.

At this time, the software compatibility of each computer is also different. Some software companies have already established a deep presence, and it is several times or even ten times more difficult to take over their software business than it was in the early stages of competition.

In order to ensure the stability of product performance, computer manufacturers will not easily change partners. Even if they want to change software, they will be very cautious, which will take a long time. During this period of time, the original market leader will definitely not sit back and do nothing.

Seeing the thoughtful or solemn faces of the crowd, Xia Yu continued, 'The market for large and small computers is already stable, and the pattern has basically been set, but there is now a much larger market, and that is the market for microcomputers. This is a market where the winner has yet to be decided.'

'In the future, all of the company's business will be focused on small computers, and various software will be developed to suit them.'

Just then, one of his subordinates raised his hand. Xia Yu paused and nodded slightly, saying, 'Dixie, what's your question?'

Dixie said bluntly, 'President, I have a question. Currently, the company's business is dominated by large-scale computer software, which accounts for more than 55%, small-scale computer software accounts for 40%, and microcomputer software accounts for less than 5%.

'Moreover, according to a statistical survey by the American Computer Association this year, the market size of small-scale computers is only equivalent to about 5% of that of large-scale computers.

'And the most prominent of these is Apple, which almost dominates the market. However, Apple develops its own software, which is also consumed internally, leaving an even smaller market for us.'

'According to the current market situation, our company is directly positioning the microcomputer software market in the number one position, with a large-scale tilt in resources. Will this be too aggressive?'

Dixie's words spoke to the hearts of many people, and they all looked at Xia Yu at the same time.

Dixie's view could only be attributed to his underestimation of the microcomputer market, but Xia Yu understood.

At this time, although the Apple II had caused a great sensation, everyone still believed that microcomputers were tools and not something that every family needed.

It could be said that although organisations, the media, or industry insiders all tried to overestimate the market for microcomputers, no one who had not seen the future could have known that microcomputers were the thing that would change the world.

If everyone here had this kind of vision, then I'm sure everyone would be willing to give up the current market and go all out to attack the microcomputer software market.

Unfortunately, Xia Yu can't say these things.

He smiled slightly and said, 'Dixie, and you guys, don't set your sights on Apple. Yes, the microcomputer market, Apple has taken the lead, but that's not absolute.'

'IBM was slow to react, and Digital Equipment Corporation took advantage of this to become a giant in the small computer market, and is now even encroaching on the large computer market.'

'But this kind of thing, once it happens, it won't happen again, otherwise IBM won't be able to explain to all its investors.'

'If IBM goes after the microcomputer market, do you think Apple can hold its own?'

When this was said, everyone subconsciously shook their heads.

It was a joke. Only those in the industry knew the terror of IBM. This was a presence that had dominated the computer market for decades. It had been the overlord since the invention of the computer, and even though Digital Equipment Corporation and Texas Instruments were eyeing it, they still hadn't toppled IBM's rule.

When small computers appeared, IBM's response was slow, but relying on its strength, it still broke through the siege and is now the second strongest in the small computer market.

If IBM enters the microcomputer market, it will be difficult for Apple to maintain its current advantage. IBM's 60-70 years of experience is no joke.

IBM's relationship with major suppliers and its ability to reduce costs far surpasses Apple's.

Not to mention internationally, IBM's international channels can easily crush Apple and all competitors in the small computer industry, and take over the international market before they even leave the US market.

Dixie thought for a moment and then asked, 'President, your hypothesis is very reasonable, but I still have one question. How can you be sure when IBM will enter the microcomputer field? What are IBM's microcomputer standards?'

This question is also of concern to everyone.

Many people are watching the actions of IBM, Digital Equipment Corporation and Texas Instruments, but so far no news has been received.

If it were rumoured that IBM would enter the microcomputer market, they would definitely adjust their company strategy immediately to prepare for the competition and find a way to get a head start.

Unfortunately, IBM's 'Chess' plan is very strict and has only been in place for less than a month, so there has been no news leaked yet. It is normal for Dixie and the others not to know.

In the midst of everyone's anticipation and searching gazes, Xia Yu's face grew serious, and with a stern voice, he said, 'What I'm about to say, you just listen to, and don't spread it outside. Understand?'

Everyone's faces instantly became serious, and their hearts grew more and more excited.

Seeing that everyone had listened, Xia Yu slowly said, 'If you've been paying attention, you should know that Polaris Capital is now the majority shareholder of IBM, and I happen to be the new director of IBM.'

'Need I say more?'

Andy Ross, Dixie and the others all understood Xia Yu's underlying meaning. Their faces were full of surprise, and they shook their heads in succession, saying, 'No.'

'Dixie, do you still have any questions?' Xia Yu asked Dixie with a smile.

Dixie smiled awkwardly and shook his head quickly, saying, 'President, I have no more comments and will completely follow your arrangements.'

Xia Yu smiled and nodded, then looked at the others and said, 'What about you?'

'President, I have no objection, I will follow your arrangements.'

...

Seeing that everyone's opinions were unified, Xia Yu nodded with satisfaction and said again, 'Very good, then next, the microcomputer software business is listed as the company's most important project.'

'The two current microcomputer software businesses can continue, but the majority of our manpower will be redeployed to form a department to develop only one project, and that is the operating system for microcomputers!'


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