Internet companies should exercise the business model of "protecting the cold", which will become the key to survival

Capital market affectedA large number of Internet companies will be dumped in the "harsh winter"

In the global financial crisis and economic decline, the real economy has been increasingly affected by the financial crisis. What is the future of the "virtual" Internet economy? The Q3 financial reports of major Internet companies have just been released, and the profit rate growth has slowed down or declined significantly. Compared to the impact of the Internet bubble in 2000, the rare-year large-stock disaster caused by the global financial tsunami will have a more serious impact on the entire industry. The impact was just beginning to show up, with a wider area and deeper depth.

 

In terms of capital markets, both IPO and investment markets are the hardest hit areas. The Internet industry, which is highly reliant on venture capital, will be severely affected. This is because the investment bank has a problem, and investor confidence is severely frustrated. In an extremely depressed global stock market environment, many Internet companies must have put off or extended their original plans for listing and financing. In the financial crisis where cash is king, the money in the VC's hands will be tighter than ever before, and investment will become more cautious.

 

I think it can be divided into the following situations. On the one hand, compared with the past hot investment, VC is competing to invest in projects, now more VC is
It will not be easy to make money in their hands. They need to observe for a longer period of time to see who is more tenacious and has more vitality. Because companies that cannot do so are all dumped, most of the companies that can survive this winter are clear business models.
High quality companies, investment in such companies will get a better return. Second, because the price for buying assets in the economic crisis is actually the cheapest, there will still be investment in all VC, but correspondingly, they will press the price very low, for companies eager to take money to live, the cost of financing becomes very high, the conditions are harsh, and the amount of financing will not be too much. In the third case, some VC has already invested in some projects. Due to more uncertainties in the future of the new project, they will add additional investment in the projects they have invested in to prevent them from dying, instead of investing in new projects. In the last case, VC is unable to pay for Low-Cost assets even if it wants to buy cheap assets by making a copy of the funds chain or having no money to invest in it.

 

In general, VC investment enthusiasm will be much lower than in the past, and capital for it and
The impact of the Internet industry is much greater than that of traditional industries. In the beginning, companies in traditional industries will earn a certain amount of income even if they are not large enough to expand business opportunities. However, in the early stage of Internet projects
Without a large amount of capital injection, coupled with imperfect "hematopoietic" functions, it is difficult to build an Internet company and find a suitable business model. Internet companies that have passed their initial stages, such
If the capital chain breaks down in the economic crisis and new money is not enough, there will also be many adverse reactions. For video-type blog websites that are still exploring their own clear profit models, it is difficult if there is no new financing. Capital City
The cold weather has a considerable impact on the entire Internet industry. It can be predicted that in the next one to two years, a large number of Internet companies will collapse due to the cold winter.

 

On the other hand, in terms of Internet companies' own operations, consumers may reduce revenue and consumption in the economic downturn, but people tend to spend more time on entertainment or online services. At this time, if the Internet company's business model is mainly for individual consumers, such as e-commerce and online games, it may be helpful for these sub-sectors. However, if the company's business model is enterprise-oriented, further subdivision is required. If the revenue is dominated by the advertising revenue of some large companies, the impact on industries that will increase investment in the economic crisis will not be significant. However, if the main customers are companies in industries such as real estate and automobile, their advertising investment will be reduced accordingly, internet companies with such companies' advertising revenue as the main revenue will be greatly affected. For example
The main internet companies, due to the poor environment, foreign trade exports are affected, the business is dragged down and the import and export business is reduced, so the impact is also relatively large. In short, it cannot be generalized, but from the overall perspective
Compared to the impact caused by the financial crisis, due to the lack of raw materials, exchange rate exchange, and especially labor-intensive industries, the Internet industry may be affected by the financial crisis in terms of operation
The smallest in the industry.

 

Qihoo does not rely on layoffsActively respond to the financial tsunami

 

The global financial crisis has not directly affected Qihoo. This is also the same as that of Qihoo 360.
The business model is closely related. Because it mainly targets individual consumers, rather than traditional manufacturers' advertising models, it will not be affected by the slump of large enterprises. We provide free products and provide them to users.
A series of value-added services, the value-added services for each individual user are only charged extremely low fees, the financial crisis will not reduce user investment in this regard. According to the latest statistics (January), the number of Internet users in China has ranked first in the world by 0.256 billion. People are increasingly concerned about online security issues, malicious Software and Trojans have seriously affected the normal development of the Internet. In the future, users will choose to shop online, store information, and play online games, the proliferation of personal privacy theft, network assets, and other online security issues seriously affect their confidence in accessing the Internet. Qihoo 360 strives to build the world's largest online security service platform. As long as people are still surfing the Internet, there will be a need for online security protection, so we have achieved very strong speeding development over the past two years.

 

Me
They have also accepted Sequoia Capital's suggestion. Instead of blindly expanding, they will concentrate on products and businesses related to their main businesses, deepen internal management, and advocate a corporate culture that will save money. However, this financial crisis will not affect
Our original development plan, including product R & D and market investment, will continue to be steadily promoted and will not be delayed or affected by the arrival of the financial tsunami.

 

At the same time, I have clearly told Qihoo's employees that, in the current financial crisis, Qihoo will not make any structural or systematic layoffs, nor lower employee salaries and welfare standards. Qihoo always believes that talent is the most valuable competitive asset in the Internet industry. In the current general economic downturn, Qihoo will not transmit pressure to its employees.

 

On the other hand, in the cold winter where the external economy is the most difficult and everyone is not "Moving", it is often a good time for mergers and acquisitions or expansion, this is because we will find some chips that are cheaper. Therefore, we may also purchase technologies, companies, assets, and recruit more talents to integrate them into the company's product and service architecture, actively Reserve Talents and technologies for the next round of global economic boom period.

 

Active and passive winter

Pass
There are usually two ways to do this in winter. First, you need to find a cotton coat to ensure that you do not freeze yourself. This is the premise. Then, you can choose to passively hide in the bed, and count the amount of money you have in your hands and the amount of money you can keep yourself alive.
Time. For example, some network companies still have 10 million yuan of funds in hand, with a net revenue of 1 million yuan per month. They can live for ten months and wait for the winter to pass. In this way, even if it is not frozen to death, the whole body is physically weak.
Weak. When Spring really comes, there will be no strength. In addition, you can choose to do more exercises in winter, work hard, enhance physical fitness, moderate mergers and acquisitions, and expand the scale, as well as technical and talent reserves.

 

In
When the economy is overheated and the investment is overheated, everyone will be impetuous, and the employees will not be able to calm down, thinking about going out to start a company's financing and entrepreneurship, resulting in instability within the company and affecting development. Now the external environment is not good.
It is no longer possible for a team to write a solution to make money. Therefore, people are more calm and willing to contribute to the company, and the company's team is more stable. Because companies that don't stick to the frozen market are all dumped
There will also be less competition, and the company's development can be more calm than radical. In the past, when the company was developing rapidly, it was often the business that promoted the company's development. There were many problems in the construction of management and corporate culture,
There is no time to stop and rectify management. Now, the pace is a little slow. You can calm down and sort out and adjust the company's business model. At the same time, you can develop your core business and core competitiveness better.
Industry distance.

 

 

Gold
At present, the biggest impact of the financial tsunami is the financing and listing markets of Internet companies, which have different influences on the revenue markets of various companies. During the global economic crisis, many Internet companies will die because they cannot withstand the pressure.
This is not all a bad thing. The survival of the fittest applies to the natural world as well as the business world. The weather is overcast and clear, and the economy also has a period of ups and downs. When the stock market was a bull market, everyone thought they were Buffett.
The city lost all chips to know the difference between itself and the "stock God. People in the water think they are swimmers at the rise of the tide. You only know who is not wearing swimming trunks when the tide recedes. When the Internet bubble broke down in 2000, many companies were killed at home and abroad, but the companies that survived in the winter had a better development. After the baptism of the financial tsunami, people can better see which companies have excellent potential and which are not clear business models, the elimination of inferior products allows superior companies to gain better development opportunities, which is also in line with the rules of market evolution.