NET radical market strategy, uncertain success

　Really worried about net, in the classified information market has not been the first place in the industry, and now at the same time to worry and SouFun to launch a challenge, such a radical market strategy, net really spelled. Success is a strategic strategy; failure is suicide.

Strategic strategy?

In fact, although the strategy of the market is risky, it is worth a try. From the former net in the classified information industry, recruitment and property itself is the most important, the largest share of the two large business. In the previous article, "struggle to be a perpetual dick?" NET, who was in the war? At the end of the chapter, a little bit of this is mentioned.

At the same time Open 58 with the city and net can be found, recruitment, rental, second-hand housing three business are ranked in the top three navigation bar, after the second-hand car, second-hand market and other life services items of the order of the different orders appear. From the arrangement of positions can be seen recruitment, rental, second-hand housing information on the classification of the importance of the site, classified information site half of the business from recruitment, rental and second-hand housing, these three business development has decided to classify information on the market position of the ability.

NET market strategy is to focus on the creation of their own in the recruitment, rental and second-hand housing market position, through the recruitment industry and the worry and the real estate industry SouFun contend, highlighting their own in the recruitment and real estate market position. With market results and industry approval, it can be said that net has become a leader in the classified information industry because of its increased competitiveness in the recruitment and housing sectors. Theoretically, the strategy of overtaking the curve is feasible, although it is risky, but once successful, the results are very impressive.

In the PR campaign, net has begun to worry and SouFun, trying to convey to the media that they have in the field of recruitment and property to contend with worry and soufun impression. This kind of close-style PR strategy, very common also very effective, Samsung alongside on Apple's propaganda means is a typical case.

At present, net has been in the recruitment and housing market action, if it is intended to further the 58-city corner overtaking strategy, the next step is likely to shape their own has become a second-hand trade market first. However, the second-hand market is not a categorical information of the absolute play, temporarily can be put aside, for the market, can really do the recruitment and real estate two areas is enough.

A suicide?

Opportunities and popular coexistence, net have the guts to do so, should also think there will be a great risk. Yang Hao Chung's strategic vision and courage is commendable, this kind of play for the average person is difficult to think of, even if can think of also may not have the guts to do. Yang Hao-hu determined to let go, it seems to hard for years, but into the classification information industry second encounter very dissatisfied, would rather die a war, also not far drifting to survive.

NET this battle does not win, might really become suicide. At the same time to 58 with the city, worry and SouFun war, the front pull too long, too many enemies, hidden dangers, three if at the same time in the dark, net at any time may collapse. Even if only the fight is clear, net's operating risk is very large.

The labor and marketing costs of the three-tier war will be very expensive. 58 the same city 2013 years sales and marketing costs + research and development costs + management costs of the operating total expenditure for (84.5 million + 25.1 million + 13 million =) 122.6 million USD; SouFun 2013 sales Expenditure + general and administrative expenses total operating expenses (101.9 million + 83.4 million =) 185.3 million USD; worry's 2013 marketing spending + general and administrative expenditure (75.1 million + 35.6 million =) 110.7 million USD.

To be in the three major areas at the same time to achieve substantial results, increase human cost investment and advertising efforts is inevitable, to the three major listed companies in the total operating expenses, net to achieve a breakthrough in performance, the total operating expenses to at least 150 million U.S. dollars. To know that last year's market only raised 90 million U.S. dollars, although the so-called last year has been profitable, but certainly not higher than the city of 58. 58 the same city 2013 total revenue of 145.7 million U.S. dollars, net profit of 19.6 million dollars, even if 2013 years can have 10 million net profit, and last year financing of 90 million dollars a penny, the current hand capital is 100 million dollars, but this year to burn at least 150 million dollars, if net this year's revenue can only 100 million dollars, to 2 At the end of 014 years, Net's reserves will be reduced to $50 million trillion, which will be difficult to sustain for 2015 years if the IPO is not completed 2015 years ago.

Recently, net has begun to make big money, announced recently will invest 200 million yuan in the property sector, 100 million for advertising, and another 100 million to subsidize users, such a burning CHANFA is net unbearable weight.

So crazy to burn money, and finally get 200 million of dollars in revenue, not only to get higher net profit, revenue capacity will overtake 58 with the city, if the advertising effect and output per capita is not up to expectations, net is very likely to appear the crisis of capital chain rupture. This is the ideal situation, and the reality, net hands really have 100 million of dollars? Can revenue reach 200 million dollars this year?

NET also challenges the three major industry giants, in the eyes of capital markets is not necessarily a good thing, the capital market for the industry share and competitors of the development of sensitive, the three major industry giants of any one of the rapid growth of performance, will cause the capital market for net future prospects of questioning.

How many billion net profit this year ready to go public?

Yang Hao-hu is optimistic about Net's outlook, saying in a media interview: "We're fine now, we made a profit all year." To make a conservative estimate, if this year stays as fast as last year, we will have a net profit of several billion this year. The company is now in a period of lack of money, capital, if the company's advantage, we will do, the listing can also be considered. ”

Do not know if this is Yang Hao Yong pretending to be strong, or net really strong, this year, a few billion net positive, from where? Also with three major industry giants revenue for reference, 58 with the City 2013-year net profit of 19.6 million U.S. dollars, worry 2013 net profit of 82.7 million U.S. dollars, SouFun 2013 net profit of 298.6 million dollars. Suppose net 2014 realized net profit 300 million yuan, about 50 million dollars, that is only need to complete 200 million dollars of revenue, theoretically is possible, if really can achieve this standard, that listing will be a matter of ripe. However, if the net strategic approach to high revenue, it will have to wait until the end of 2014 to see the results.

Whether it is a strategic strategy or suicide, now it is really difficult to say, into a loser for the king, Yang Hao-hu soldier Line risk strokes of the boldness, net can complete in the recruitment and housing market to 58 of the city's corner overtaking, all see this year performance. Whether NET is alive or dead is to be seen at the end of 2014.

Wen/Wang Liyang

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