Tech giants start by disassembling systems

Chapter 51 All-Staff Meeting

The meeting was held in an open space outside the factory.

There was no podium, no PowerPoint presentation, and no sound system. Su Chen stood on an empty shipping container piled in the corner, holding a megaphone in his hand.

More than three hundred people stood below. These included production workers, the field sales team, management, and the technical department. Also present were the three field sales team leaders who had rushed back from various locations.

Su Chen did not begin his speech.

"I know what you're worried about."

More than three hundred pairs of eyes were watching him.

"You're worried that DJI will release a new machine and our F2 won't sell well. You're worried that the company will go bankrupt like other small factories. You're worried about losing your jobs."

No one spoke. But the expressions on many people's faces confirmed Su Chen's judgment.

"I'm not here today to tell you 'don't worry,' because that's useless. I'm here to tell you three facts."

He extended the first finger.

"First, DJI's Mavic Pro sells for 7,000 yuan. Our F2 sells for 2,000 yuan. The customers for these two machines almost never overlap. Those who buy the Mavic Pro are urban travelers, vloggers, and photography enthusiasts. Those who buy the F2 are wedding planners, real estate agents, and scenic spot promoters in small towns. One prioritizes lightness and aesthetics, the other prioritizes stability and durability. These are two different paths."

He held up his second finger.

"Secondly, DJI's new machines will indeed cause some small factories to go bankrupt. But those factories that go bankrupt have one thing in common—they didn't have their own flight controllers. They used generic solutions that anyone could buy on the market. When DJI raises the standards, these products without technological barriers will naturally be eliminated."

"But Hongyuan is different. We write our own flight controller, we don't buy it. In the same price range, no other company's flight controller quality can compare to ours. This won't change just because DJI releases a new model."

He held up his third finger.

"Thirdly, our next-generation product, the F3, has entered the final testing phase. Mass production will begin in three months."

He paused.

"It's not meant to compete with DJI on who's prettier. It's meant to compete with DJI on who's more durable."

Someone below chuckled. The laughter wasn't loud, but Su Chen could sense that the atmosphere had changed slightly.

"The F3 is designed to allow small businesses in county towns to work with peace of mind in various harsh environments. It needs to be wind-resistant, drop-resistant, waterproof, and low-maintenance. It should be as stable and reliable as a tractor. This is the kind of product the Mavic Pro wouldn't stoop to—because it prioritizes lightness and agility, not ruggedness and stability."

"So remember one thing—DJI is not our enemy. DJI is building its market, and we are building ours. No matter how powerful its new machines are, they can't steal our core customers. Because our core customers don't need a fancy toy that costs seven thousand yuan—they need a work tool that costs two thousand yuan."

Su Chen paused for a second.

Then he mentioned a number that many people don't know.

"There's one more thing I want to tell you. Our agricultural drone control SDK, which started from scratch, has accumulated over 300 orders in just three months, covering more than ten agricultural machinery manufacturers. Toyota Agricultural Supplies' more than 300 stores are becoming our distribution channels. Companies in Southeast Asia have already proactively approached us."

A low gasp of surprise came from below.

Many ordinary employees are unaware of the specific progress of the plant protection business. They only know that the company is developing agricultural drones, but they don't know the extent to which it has been achieved.

"The slight decline in monthly sales of consumer-grade products is not the end—it's a transition. The F3 will enter mass production in three months, further expanding our advantage in county-level markets. Agricultural flight control is already building a second growth engine for the company's future. And many other things are happening simultaneously behind the scenes that you can't see."

Su Chen glanced at the people below. His expression had changed. He wasn't completely relaxed, but the feeling that "the sky is about to fall" had clearly dissipated a lot.

"So don't overthink it. Everyone just needs to do their job. Manufacturing, maintain quality. Sales, provide excellent customer service. Technical department, finish the F3 and SDK work. The rest—that's my job."

He jumped off the cargo container.

The meeting ended just like that.

There were no slogans, no mobilization, and no inspiring grand principles.

There are only three facts, a timeline for a new product, and the phrase "the rest is my business."

But Su Chen noticed that when the crowd dispersed, the footsteps were much more steady than when they were approaching.

After the meeting, Su Chen sat alone in his office.

He wasn't thinking about the employees—that had already been resolved.

He was thinking about a deeper question: why was the decline only 12 percent this time, instead of 30 percent or 50 percent?

In my past life's memories, within six months of the Mavic Pro's release, over 70% of small and medium-sized drone companies in Shenzhen went bankrupt. Those survivors either had their own developed technology or had secured a niche market.

Hongyuan has both. Therefore, Hongyuan will not fail.

But what Su Chen was more concerned about was that the wave of bankruptcies was not entirely a bad thing for Hongyuan.

Because those small factories that went bankrupt were originally competitors of Hongyuan—their low-priced machines assembled using generic solutions had been eroding Hongyuan's market share in county towns. Now DJI has eliminated these competitors for Hongyuan.

After the reshuffling, those who survive will get a bigger slice of the pie.

Su Chen picked up a pen and wrote three lines on the whiteboard:

[June Gains and Losses Assessment]

Loss: F2 monthly sales declined by 400 units (short-term, manageable)

Conclusion: Competitors in the same price range begin to exit the market en masse (long-term and irreversible).

He added another line:

[After F3 goes into mass production → product differentiation increases → core customer base is locked in → market share in county towns rebounds]

This is Su Chen's planned timeline. Everything is under control.

But there was one thing that was beyond his control.

Starting yesterday, Tianying announced another price reduction for its Flying Eagle II – from 1999 yuan to 1699 yuan.

At the same time, Tianying announced that it will launch a brand-new "industrial-grade" drone next month, emphasizing "super durability" - from positioning to copywriting, it is targeting Hongyuan's core customer base.

Lu Weimin is studying.

After failing in the price war, he learned one thing—you can't just compete on price, you have to compete on positioning.

Su Chen added another line to the whiteboard:

[Tianying New Product - Surveillance Camera]

Tianying's new products will not pose a fatal threat to Hongyuan. This is because Tianying does not have its own flight control system—it can only focus on the exterior and marketing, while the underlying quality of the flight control system will not change fundamentally.

But Su Chen cannot let his guard down.

Because Tianying has something that Hongyuan doesn't—marketing firepower.

When Tianying uses GG to roll out the concept of "super durable" in county-level markets on a large scale, impressions will precede actual performance.

Su Chen needs to get the F3 into the market before Tianying's new products.

Time is very tight.

Su Chen picked up the phone and dialed Zhang Lei's number.

"Zhang Lei, can the F3 schedule be moved up by another month?"

There was a three-second silence on the other end of the phone.

"Mr. Su, moving up the schedule by a month means there are only two months left. Several harsh environment tests haven't been completed yet."

"Is it possible?"

Three seconds of silence followed.

"If we split the testing into two batches and run them in parallel, one in the lab and the other in a real-world outdoor environment—that's possible. But we'd need to add more people."

"Add them. Tell me how many people you need."

"knew."

After hanging up the phone, Su Chen stood up and walked to the window.

Outside the window is Shenzhen at the end of June; it's late in the day. In the distance, construction cranes cast long, thin shadows in the setting sun.

The reshuffling period is painful.

But the reshuffling period also presents opportunities.

With competitors at the same price point exiting the market en masse, Hongyuan will gain greater market share in county towns.

F3 will completely fill this space.

The ecosystem of aerial plant protection systems will continue to expand.

The Southeast Asian market will be launched at the appropriate time.

As for Tianying, it can try its best to learn Hongyuan's positioning, but it cannot learn Hongyuan's flight control.

Because flight controllers cannot be bought through marketing.

Su Chen turned and left the window.

The path ahead is clear. It just requires time and execution.

And time—in this round of reshuffling—every minute that stings Hongyuan is causing its competitors to bleed even more.

Su Chen's lips curled up slightly.

Not because I'm happy, but because I'm certain.