Sun Dawei: The Most Wonderful Silicon Valley Entrepreneurial Story

Among the many garage entrepreneurs in the Silicon Valley, Sun Dawei's story is one of the best.

Kingston, founded by Kingston, is Utopian Utopia.

Internally, we should not emphasize budget control and other red tape. We should try to create a culture of independent management with unique human touch. Externally, "doing business is going to be a man", "OK, at this price, losing money will do with you."

Regard commitment as the most critical principle.

Kingston is such an unruly, even "no strategy," Kingston, who has been the leader of the global memory module for many years, and has been reelected for the 5 consecutive year in the fortune 100 magazine "Best worktor to".

Kingston is not a listed company, but it does not mean that employees pay less dividends.

As early as 1996, Sun Dawei took out $100 million as a year-end award, creating an average bonus of nearly 8 million NT dollars per employee.

The world's memory is the same standard. The same way of production, Kingston (Kingston) is not necessarily smarter than others. But why can they be the first in the world?

Where are their strengths?

It's hard for you to imagine that Kingston, the most wanted Native American business, came from two Chinese people who are fluent in Chinese.

Today, with the prevailing scientific management concept, in western society, Sun Dawei has gone against his own way. He dares to "give up his feet" to show his ugly feelings and spread the humanized management of "Kong Meng".

This is like two very different families. Strict and orderly parents bring out children who know rules, and kindhearted and loving parents teach children who know tolerance and filial piety.

Different management modes do not prevent their orderly and healthy development.

As is known to all, memory products are less technical.

However, such a product with little technical content is facing a rapidly changing market, especially the price of DRAM (dynamic random access memory), just like roller coaster, one day number change.

Perhaps such a variety of changes, any one from the upstream chip price of the wind and grass, will affect the location of the lower reaches of Kingston and its channels of fate.

Therefore, rapid decision making and simple and straightforward style of action are necessary.

"I respect Sun Dawei very much because it is hard to find people like him in a competitive global business environment."

Many people familiar with Sun Dawei say so.

Sun Dawei never makes a hammer deal, but builds a long-term cooperative relationship with the upstream and downstream, including suppliers, distributors and customers, under the psychological drive of empathy.

For example, if the upstream chip manufacturer has too many chips, Kingston will consider ordering more goods, even if there is a loss in the market, and it will not take the opportunity to bargain with the chip makers.

Of course, the so-called chip manufacturers will have the same feedback action.

If the market is sluggish, the memory boards of one chip can not be sold. Kingston can cancel the order or reduce the quantity, and then increase the number of other chips.

But the premise is that he will maintain the total amount of the order unchanged.

Sun Dawei tried to "close" the channels, "they were out of stock and I gave them up, the market fluctuated, and I helped them to balance them.

The channel business only sells goods, has the question to call us directly, lets Kingston arrange for them. "

Sun Dawei also pursued a strange "consignment" mode: channel traders only sell goods, shipped to Kingston.

Why not let the channel merchants get the goods?

Sun Dawei's explanation is, "never force the channel merchant to get the goods, otherwise he will make mistakes."

Nor do you want to figure out how many goods they can produce.

Can sell best, can not sell, never reluctantly.

The best result is that the channel providers do not take any risks.

If the reason for the quantity is to be confused, the whole market will be confused.

He also created a "sales discount" system to help customers save money.

When the DRAM plant sold a chip to Kingston for 80 yuan, Kingston sold it to a distributor 100 yuan, and then the distributor sold it to the terminal customer for 120 yuan.

As a rule, a distributor usually commits 10% commission to a business, that is, a commission of 2 yuan (100 of profits between 100 yuan and 120 yuan).

However, when DRAM fell, the price of DRAM sold to Kingston dropped to 60 yuan, and the price of Kingston sold to the distributors was also reduced to 80 yuan. Then the price of the terminal customers sold by the distributors would not reflect the cost so quickly, so it was still 120 yuan.

At this point, the dealer will give the business 4 yuan Commission (10% yuan between 80 yuan and 120 yuan).

The concept of sales discount is that if a customer with large orders, the price of DRAM is sold to Kingston for 60 yuan, then the price of Kingston will be sold to the distributor for 100 yuan, until the end of the month, it will be returned to the sales discount amount of 20 yuan for the distributor. In this way, although it will be very troublesome to adjust the accounts once at the end of the month, it can be convenient to the customers and help the customers to save 2 yuan Commission, so it is strongly welcomed by the customers.

In the future, once customers have large orders, the first thing that comes to mind is Kingston.

This is also a long-term strategy to win big customers. It's beautiful.