7 Ways of decline and fall of internet companies

Shi Yuzhu has summed up the traditional private enterprises "13 kinds of Death method", for example, is hidden in the dark competitors, using false accusations, lawsuits and other improper methods of "death", or by the competent department "kill", or by the law of the provisions of the monk.

In fact, the Shi Yuzhu of the Chinese private enterprises operating environment cruelty, for Internet enterprises, is not a new topic, many entrepreneurial team also often the company's key factors in the decline of the blame on this.

"In fact, the state has more stringent supervision over other industries, the basic open attitude to the Internet, as long as do not touch some of the bottom line, do not go to yellow gambling virus, the cost of building a website is still very low, the regulation of red line can only be an excuse, is not the main reason; In addition, the Internet has been developed for more than 10 of years, The giant take-all inevitable, some people say Tencent monopoly, but to tell the truth, this monopoly and Sinopec in the oil monopoly than the gap is too far, in the analysis of the decline of the internet business model, angel investors, 360 security Guardian Chairman Zhou Hongyi to "excellence" reporter Blunt.

On the contrary, in recent years, there has been a new internet model for the Pathfinder external voice: The face of pervasive Tencent, Baidu and Taobao, pressure is great.

As VC, Harper, managing director of Aurora Borealis, pointed out to "excellence" Internet companies do have an important rule of success, that is, when the first-time owners have huge, low-cost access to sticky traffic, the speed of new applications can be increased very quickly, unlike traditional industries such as clean energy, such as lithium batteries and fuel cells, Interlaced GE.

"Tencent a shot, we are lazy to say that their innovation has been strangled?" Mr Xie, an Internet veteran, questioned the press, "is true innovation going to be like this?" From Yahoo! To Google, and to Facebook, this comprehensive depth of innovation is unstoppable. ”

In fact, Tencent, Baidu, Taobao in the start-up phase of the model, are not optimistic about the outside world, and even have ICQ, Google and ebay three overseas imitation prototype, in the past few years, experience a shortage of funds, risk was sold after the twists and turns, finally found the Chinese-style innovation gene was successful.

So, is it worth honestly to look back on all kinds of cases of decline in internet history?

Hu Yanping, general manager of Dcci Internet Data Center, told the press: "There is no wrong internet business, only the wrong internet company, no wrong internet mode, only wrong internet operation."

After visiting more than one senior person, the journalist tries to find out the cause of the decline of the Internet company that has been outspoken by the entrepreneur, the entrepreneur, the angel investor, the VC and the third party research organization, and analyze and comb the bottleneck where the business model can't be big. Indicate the direction.

Decline Way One

Ignore the public

Specimen: Blog China and other companies trying to prop up a huge web2.0 business model with a single blog

When the "anti-Microsoft fighter" Xingdong found that an Internet "new Dongdong" can freely express their opinions without being blocked, the term "blog" was brought into China, which ignited the enthusiasm of many Chinese intellectuals writing on the Internet.

However, it is difficult for an ordinary person to insist on writing high quality articles, so it is obviously impractical to build popular commercial value and advertising revenue in highbrow-style niche mode. This is very different from the "show Ego" of MySpace and Facebook for ordinary users, and the microblogging "whining".

Just imagine, if the original entrepreneur can make the blog more simple, what will be the effect?

Two ways to decline and fall

Wind throws up the air

Specimen: 8848 website

8848, as a benchmark in the history of China's E-commerce, but written to the Chinese wind to throw a big defeat. At the beginning of 2000, is in the glorious period of 8848 single month sales have broken through tens of millions, sales of goods up to tens of thousands of. At a time when it was only a step closer to getting high financing and going public, the internet bubble had been hit, and since then investors had been trying to cater to Wall Street tastes, focusing on "packaging" the business-to-business business that was popular in the US, weakening the local core business, and finally embarrassing the 88,481 into two. Contrast ten years "boil down" Alibaba and when, 8848 but nationalists awry, let a person grieved.

Decline mode Three

On a swarm of

Specimen: Bulk Facebook, batch Twitter and bulk group buying sites

Not all "copy" can succeed, as China's Facebook, only the network to catch up with the good day, happy net alternative to get high growth, other such as the domestic, 360 laps, ant nets have been batch fall, and such as rice, Twitter and other China, because of "China and the United States" different circumstances led to a heavy blow Again, such as thousand "Regiment" war, to a too clear business model to market, and finally in Tencent and other giants under siege gradually shuffle. Throughout, the first batch of "copy" few success, synthesizer of the Thousand Oak also failed to break, not to mention the second wave, the third wave of "copy"?

Decline Mode Four

It's a breach of the net.

Specimen: Xplus and zcom, such as Electronic magazine website

At the beginning of 2004, when a group of websites such as zcom and so on all sorts of electronic Edition magazine Free Summary present, the traditional magazine, the readership and the VC all like was to have been shot "the stimulant". Unfortunately, the user has not been able to maintain interest in the seemingly cool, but slow-reading, free magazine that sits in front of the browser, and the decline in traffic has made the dream of advertising more remote. Finally, the electronic magazine industry in the continued loss of the annihilated, hundreds of billions of dollars in the wind cast. New bottles of old wine, with the Internet emphasis on information fragmentation, personalization and interaction, all run counter. For a business model that does not really create value for the vast majority of Internet users, it is either niche or obsolete.

Decline Mode Five

Over exploitation

Sample: SP website, e-mail marketing website and some online games enterprises

Each user 5-10 yuan per month of micro-payment, may be in the unlimited user base to create miracles. However, the good scriptures were Chang. When most SP embarked on the road of quick success, not from the provision of quality services, but design a variety of traps, and even direct collusion with operators, monthly forced deduction fee, so many mobile phone users accidentally set a high "package", which also has mass spam messages. Finally, a paper "two times Confirmation" order, the entire SP industry few survivors. In fact, the neglect of user value, overexploitation of users, but also make the once "beautiful" e-mail marketing into the cradle of spam, but also make some of the online gaming enterprises encounter development bottlenecks.

Decline mode Six

Rely on the hard relationship

Specimen: Green dam Internet software, etc.

The history of the internet has proved that there are many cases where there is no government resources, but rely on the high quality of customer service to achieve a large scale, but there is little to see only government support and support to achieve strong influence of enterprises. The end of Green Dam's software is a wake-up call for all those who ignore the interests of their users and hope to pass the convenience of some big powers, operators and industry associations, and even try to intervene by government directives to force them into every private computer internet.

Decline mode Seven

Tangled "Two-line operation"

Specimen: 58 City Life Community type website with City NET, net etc.

There is a class of internet business model, there are models and products, but it is difficult to big. Because it is in the middle of the industrial chain, not only to meet the upstream manufacturers, but also to serve the downstream users, the enterprise resources and business operation requirements are very high, there will always be the first chicken or egg first problem. And looking back on the Internet development, single line combat success rate is high. such as the early Tencent and Baidu, the main focus on meeting the convenience of netizens, that is, to provide high-quality instant messaging and search, later again "fix" business. At present, including 58 with the city network, net, such as urban life sites are "two-line combat" in the tangle.

Zhou Hongyi's reflection the most tragic is the inspiration for the Giants

In the face of "which Internet model easy to go bad" question, the Zhou Hongyi calm reflection.

"Summed up, not subversion, not innovation, not free, not to the user value first, is not going to be a big deal." Also, it is common for an internet company to make a few mistakes and to have complications. ”

Zhou Hongyi said others in happy net steal food, he is studying the reason of happy net popular.

In fact, what he has learned is not only a deposition of years of research into the case of Chinese and American internet companies, but also a honestly of entrepreneurs.

"To add one, I made a mistake, too." The reason to err is also "special" because it is "too experienced, too thoughtful, too highly and too rich".

"These are very harmful," he said, "arrogant, opinionated industry critics, even thinkers, talk about 3G, search and community integration and so on, but forget the golden rule from the most grassroots users, the idea of many, not focusing, resulting in the year's Qihoo to the portal, down to search, E-commerce and community search, To do 11 kinds of products in a breath, come a hodgepodge; money on the ' burn ', money on the expansion, constantly recruit, almost let the company's cultural management out of control; wantonly burning money to advertise, so lurking in the bottom of the ' product is rotten ' by the market to promote the flow of big traffic blinded ...

Experienced a series of blind "self-righteous" Zhou Hongyi, eventually from Qihoo to 360. Today's 360, has gradually developed into a successful client software, is also "subversion, innovation, free, user value first" of the "internet spirit" put into practice.

As an angel investor, Zhou 祎 has been constantly investing in entrepreneurial teams in recent years to deliver this idea, while helping a group of potential troops who know how to adjust their strategies flexibly.

"The more I'm feeling now, the more I've been in the early years, some people say it would be better to vote for a second-rate idea plus a first-rate team than a first-class idea plus a second-rate team." I don't understand at first, because a lot of people think idea is very important, in fact, it is not a model, from idea to model still have to undergo a long exploration. ”

In fact, the ultimate success of the Internet companies and the earliest financing of the business plan to write is not the same. It is the so-called, the pattern is dead, the person is alive. A first-class idea, team executive force is not, there is a possibility, is a good idea to do a smash; the most tragic is to inspire the Giants, they have not made, became martyrs.