Chapter 120: IBM’s Agency Rights (2/4)

IBM stands for International Business Machines Corporation.

Its business interests are extensive; it even manufactured firearms during the Second World War. The development of the IT industry over the past several years has been closely tied to this company.

After IBM’s market value reached its peak, it unexpectedly became embroiled in an antitrust investigation that lasted for more than a decade. The case was not brought to a close until last year, seriously hindering the company’s development.

Now the company is recovering. It commands more than half of the personal-computer market and appears poised for a second spring. Even though it is far less powerful than it was at its peak, it was still not a company Su Mu could afford to underestimate.

Every emerging technology company in Silicon Valley now had to look up to IBM. Some even said that Silicon Valley was Silicon Valley only because IBM was there, a clear indication of how enormous its influence was in this era.

Its headquarters were actually in New York State. Yet over the past decade or more, nearly all its various operations had unfolded in the Silicon Valley region, and its original headquarters had almost been forgotten. IBM had manufactured typewriters as well, but unlike Wang Laboratories, its business in recent years had been shifting toward personal computers.

The very concept of the personal computer originated with IBM’s first desktop computer three years earlier. During the first few years, personal computers had been in an accumulation phase. It was only from the second half of this year onward that sales began to show explosive growth. Su Mu had entered the industry at exactly the right time.

That was precisely why a group of young computer sellers, including Su Mu and Michael Dell, were able to conduct business so smoothly. Markets waiting to be opened lay everywhere, and they had no reason to worry that buyers would be hard to find.

The executives of the more powerful companies, meanwhile, were mostly advanced in age, and their ways of thinking had long since grown rigid. Even if a personal computer were placed directly in front of them, most would regard it as nothing more than a novel little toy, hardly anything important.

Young people were different. They were far more receptive to new things. In this era, the average age of those starting businesses in Silicon Valley was still under twenty-five. Silicon Valley belonged to the young, while the great predators of Wall Street had only just begun turning their eyes toward the region.

After getting out of the taxi, Su Mu walked alone into the IBM building. It was clean and orderly, and the new building had only recently been put into use.

After asking the receptionist, he said, “Excuse me. Could you tell me where Mr. Tom Rivers’s office is?”

The woman did not even look up. She seemed terribly busy. While making a phone call, she asked him, “Which department? Do you have an appointment?”

Su Mu was about to answer when the young woman gestured for him to be quiet. He could not tell whom she was speaking to; she was apparently arranging a time for someone to meet. Only after she finished her call did he get another chance to speak.

“I’m not sure which department I should contact. I’m hoping to become a distributor, and I’ve already made an appointment.”

“Not in this building. Ask next door.”

Her voice sounded almost mechanical. Perhaps because she was so busy, the telephone in front of her rang again the moment she finished speaking.

Looking at the receptionist and thinking of Amy, the receptionist at his own Penguin Company, who spent her days bored enough to read magazines, Su Mu felt that Amy ought to come here and study for a while. Then he realized that even if she did, it would be useless. Penguin simply did not have that much business.

The appointed time was fast approaching. Su Mu hurried next door, made inquiries at the reception desk, and took the elevator. The moment he stepped inside, a large crowd surged in behind him and successfully squeezed him into a corner.

This is what a large company should look like, Su Mu thought. Everyone seemed to be busy. Compared with the people at his own company, who were practically on vacation every day, these employees were worlds apart.

After several minutes, he found the department responsible for distributor accounts.

He had arrived just in time. More than a dozen adults in suits were waiting outside, while a young secretary with a head of wavy blond hair called out names one after another. She held a folder that presumably contained the appointment list, and only those whose names were called were allowed inside to discuss business. The place truly was busy.

“That’s me!” Su Mu quickened his pace and hurried over, panting. Like a student whose name had just been called by a teacher, he instinctively raised his hand.

The secretary looked surprised. “You’re Leon Su? The Penguin registered in Menlo Park?”

“Yes. It’s the company I founded.”

“All right. That’s an interesting name. I met a Panda just yesterday, and that was a company too. You should put together a zoo.”

Seeing how young Su Mu was and how different he looked from everyone else, the secretary teased him.

Feeling that it would be wise to win her favor, Su Mu played along, deliberately putting on a shocked expression. “Really? I was planning to name my next company Panda. I suppose that’s no longer possible.”

As expected, the secretary laughed. “Then you should try acquiring it. It’s only a very small company.

“Go in and discuss your business. Mr. Rivers is waiting for you inside. Good luck. The boss isn’t in a very good mood today, so remember to compliment the watch he just bought. If your company has the means, you may have a chance.”

She lowered her voice considerably for the last sentence.

Su Mu’s eyes lit up. No one understood a boss better than his secretary. He quietly thanked her and entered the office.

Mr. Rivers was standing by the window, and he really did appear to be in a poor mood. The sleeves of his white shirt were rolled up, while his tie and suit jacket had been carelessly tossed onto the sofa.

Having never experienced such a situation before, Su Mu spoke with solemn composure. “Good morning, sir. I’m in charge of Penguin Company. I’d like to discuss becoming one of your distributors.”

His voice sounded very young. The executive named Tom Rivers turned his head and studied Su Mu, trying to guess his age. Then, with a bemused smile, he asked, “Didn’t your parents come with you? Sorry, but you’re not yet an adult, are you?”

“They work in New York’s Chinatown. I have full authority over the company’s affairs. It was founded by my friend and me.”

Considering that minors were not permitted to establish companies, Su Mu added, “It’s a legitimate company. Someone else is officially listed as the person in charge, but my friend and I own all the shares.”

After reviewing qualifications all day, Mr. Rivers had already grown thoroughly impatient. Encountering a boy so young who wanted to distribute IBM computers struck him as amusing.

He sat beside the desk and found Penguin Company’s distributor application among a pile of documents. In an odd tone, he asked Su Mu, “You sold six thousand computers in a little over a month. Are you sure you’re not joking with me again?”

He clearly did not believe the figures. During the first three quarters of the year, IBM had sold only a little over four hundred thousand computers. Although personal-computer sales were growing at a frantic pace this year, he simply could not believe that an unknown company had sold so many machines in barely a month.

Su Mu had prepared for this. No matter how much he said, it would be less convincing than showing the evidence. He produced a thick stack of invoices documenting every transaction and movement of funds since Penguin Company had been established.

After examining several of them, Mr. Rivers’s expression gradually became more animated. He was still trying to determine whether the documents were genuine when the Chinese youth before him said, “You can call any of our customers and ask them yourself. We’ve had to obtain machines from other suppliers, which has directly reduced our company’s profits.

“If we can’t obtain distribution rights for IBM products, I’ll choose to sell other companies’ products instead. More than a hundred companies around the world are manufacturing personal computers now, and the profits are far higher than those from selling your products...”