Chapter 3952 Frontier Region Development

The plan that Minister Shederin Purnesse concocted in the last few weeks was actually quite brilliant.

Even though it relied on a lot of assumptions that sounded dubious to Ves, its logic was sound and the chances of succeeding was quite good compared to many of the other suggestions that he heard as of late.

"If we rule out the wasteful and self-destructive act of giving our hard-won wealth, we need to look to ourselves if we want to find a better option to win over the parties that have come to dominate Davute's political and economic landscape." Shederin patiently explained to Ves. "Now, what is the greatest strength of the Larkinson Clan?"

"Our mechs." Ves immediately answered. "My efforts and the contributions from the rest of the Design Department has allowed us to design a lot of strong and unique second-class mechs. We are known for our living mechs and we are able to exert greater combat power because of that. While our military might is not weak due to that, I believe that our advantage is best reflected in the mech market. Once we complete our next design round, I have no doubt that our latest wave of commercial mech models will take the regional markets in Krakatoa and Yeina by storm!"

The earning potential of living mechs and other special mechs was just too strong!

The LMC may be a complete newcomer in the Red Ocean, but it shouldn't be too difficult to rapidly build up its brand awareness. Ves just had to make sure that his mech company published at least one great mech model that successfully turned into a bestseller.

From his previous experiences, just one bestseller was enough to support an entire mech company's rise!

It didn't matter if the other models in the catalog did not achieve critical success or provided any profit. Ves could just treat the mech market like a giant lottery. He might lose money after buying 99 lottery tickets, but as long as he managed to hit the jackpot with the next one, he could recoup all of his investment and more!

Of course, not every mech designer and mech company was qualified to adopt this lottery strategy. If their ability to develop good mechs was not up to par, then they would never be able to win a prize even if they bought a million lottery tickets!

Seeing Ves react with so much confidence in his mechs caused Minister Shederin to smile as well.

"Your mechs are valuable and so is your ability to design them on a continuous basis. What we need to do is to entice more parties into forming mutually-beneficial relationships with us by attracting them with your products. Are you confident that you can win them over with your work?"

That was an intriguing question.

"I'm not sure." Ves honestly admitted. "I don't know how other people and organizations will view my mechs. Many powerful pioneering organizations usually employ their own mech designers, so they are not short on quality mechs. Their core mech models are all internally developed, which not only ensures that they have total control over their military assets, but also allows them to design mechs that exactly fit their needs."

Even if there were lots of external mech companies and mech designers that could offer superior products, these pioneers would not easily switch over to them. At most, only a part of a mech force's composition would be made up of third-party mechs.

However, this was enough of an opening according to Minister Shederin.

"No organization can design the best possible mechs in every category. You of all should know that, patriarch. There are also gaps in coverage that mech designers cannot easily fill. For example, several of your mech models provide unique glows that provide utility that cannot be found elsewhere. These mechs are the foundation of the LMC's rise and they can also be leveraged to bind more powerful parties to our clan."

Ves understood the logic of this argument, but it was not so easy to win over ambitious pioneers who already achieved a lot of success of their own. Their strength wasn't weak and it was difficult to convince them that they should invest in mechs designed by Journeymen.

"That still isn't enough to overcome the inertia of the power blocs in control of Davute." He refuted. "Mechs designed by Masters are the norm at this level. The performance, optimization, support and infrastructure of these mech models are all superior to ours in many ways. Even if their mechs are not alive, who cares when they can just crush our machines the old-fashioned way?"

Shederin nodded in agreement. "The first steps are always the hardest. This is why we need to start small and win over a smaller party at first. Now, out of every possible type of organization in the Red Ocean, which ones rely more on good mechs than others? Which ones base their strength on the quality and features of their mechs the most?"

It did not take long for Ves to supply an answer.

"Plenty of pioneers have found a place in the new frontier by relying on their primary business activities. Our clan is supported by selling mechs, for example. Murphy & Sons are banking on your shipbuilding operations. The Aduc Family who we will soon be acquainted with has a foothold in the terraforming industry. Each of these groups have achieved success in their respective business field, so their reliance on mechs is not that great. Their mech forces only need to be strong enough to protect their assets. They can call upon the services of other parties if they are faced with a threat that they cannot handle."

Shederin smiled. "And who exactly are these parties that primarily generate revenue by renting out their combat units?"

"Mercenary organizations." Ves answered.

"Exactly. The security industry is unique among all of the other service industries. It is not based on a productive activity. The companies that are active in this field do not produce any goods. They provide a service, which happens to be protection. In order to do this job well enough to attract well-paying customers, the mercenaries must make certain that their combat strength is up to par. Employing good mech pilots and maintaining a strong esprit de corps are just a couple of requirements. Fielding a strong and balanced mech roster is also a necessity. This is where our clan can be of value. If we approach these mercenary organizations and allow them to commission customized mech models from us, I believe that it will not take long for them to fall in love with our solutions."

This was one of the strong points of the living mechs designed by Ves. Almost every customer that experienced them turned into recurring customers. It was difficult for them to consider alternatives when living mechs were so useful and so comfortable to pilot!

Ves briefly fell into thought. He had dealt with numerous different mercenary outfits and mercenary organizations over the years.

Space was too big and order was relatively sparse in many areas. Protection was essential and many companies were not able to protect their assets on their own. This gave birth to an enormous security industry where many different companies earned their keep by meeting this essential demand.

There was a huge variety of mercenary companies, and Ves had dealt with two of the extremes.

Early on in his career, he had contracted a scumbag mercenary outfit that was weak and unreliable in combat.

Later on, his financial means had grown, so he and his clan contracted the services of a powerful and reputable mercenary organization.

Right now, Shederin was mainly referring to the latter. Providing security was risky business, so a lot of mercenary organizations tried their best to elevate their combat power by any means possible.

No one appreciated good mechs more than those whose lives and livelihoods depended on them! Mercenary outfits were unlike shipbuilding companies or nutrient pack producers that supported their existence through peaceful means.

Even if a company like Murphy & Sons only possessed garbage mechs that were over three generations out of date, so what? As long as the Murphies used their earnings to contract a reputable security company, they had no concerns about protecting their business assets!

Mercenary organizations usually didn't enjoy this option. They were only good at fighting and deterrence and nothing else. While there were plenty of cases where they attempted to diversify their income streams by branching out to other sectors, it was too difficult for them to succeed without inherent advantages.

All of this meant that good mechs were far more than a luxury to them. Good mechs were literally their lifelines!

The more Ves thought about it, the more he felt that it might be useful for his clan to entice a few of them. Even if the mercenary organizations weren't strong enough to provide any political support, it didn't hurt to befriend them over time.

This was far from securing political support, though.

Ves frowned. "I can see how we can establish tentative partnerships with a couple of marginal and struggling mercenary organizations, but how will that help us in the long run, Shederin? The power players that we truly need to win over are more than capable of addressing their own shortcomings. I don't think our goods and services are attractive enough to catch their attention."

"We can adopt several different strategies to solve this blockade. For example, we can win over a smaller party that is related to a larger party. If we earn the approval of the former, we will have an opportunity to earn the approval of the latter."

"That takes too long."

"I agree, sir. That is why I think we are better off by pursuing a riskier but more rewarding strategy. We should support the rise of a new power bloc. There are many struggling mercenary organizations that are in the same position as us. If we band together with them, we can strengthen their mech forces and help them gain their footing in Davute's expanding security industry. We provide the mercenaries with living mechs while they provide us with greater access and acceptance. This is a win-win deal for both of us. As long as we are able to form a symbiotic relationship with several mercenary organizations and use our initial successes to attract stronger security groups, we can essentially form a rising new power bloc that can become a fixture in Davute!"

This was one of the more unreasonable steps of Shederin's plan! Ves did not believe that it would be that easy to build an entire coalition of mercenary organizations around his products!

The Larkinson Clan's foreign minister was not finished, though.

"You aren't thinking far enough, Ves. You need to view this situation in the context of the development of a frontier region. What do you think will happen in Krakatoa in the next couple of decades?"

"Settlements will grow larger. Once the colonies have matured to the point where they are able to project their strength to other star systems, their owners will finally become strong enough to found their own states. Territorial struggles will break out as many rising states will attempt to grab as many star systems as possible."

"That is what I envision as well." Minister Shederin replied. "Now, ask yourself this question. Which groups will be the ones who take the lead in fighting these frontier wars?"

"...If the states haven't organized their own military branches as of yet, then I guess the mercenaries will take charge. Is that what you are saying?"

"It's more than that, Ves. What if I tell you that most of those mercenary organizations will eventually be absorbed by the states and turn into the first mech armies, mech corps, mech divisions and mech regiments?"

Ves widened his eyes. He hadn't realized this yet! Although it sounded a bit dangerous to turn external groups into state-backed military forces, it actually made sense in a way!

"That isn't all." Shederin continued. "When these mercenary organizations transition into formal military troops, their ties to the industries that have supported them will not fade. In fact, in light of all of the wars that will break out, it becomes even more important for these mercenaries-turned-soldiers to develop strong, long-term relationships with the suppliers of their arms! In my world, we call this the rise of a military-industrial complex."

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