Avoid entering the trap of "addition and merger"

Absrtact: Capital is xianpinaifu by nature, it is because of the booming of China's internet industry that capital is pouring in, there is no problem. However, the capital is also a thousand-year fox, not good will let you Yunshan and do not know the trace. So, clarifying the capital

Capital is inherently xianpinaifu, and it is because of the booming of China's internet industry that capital is pouring in, and there is no problem. However, the capital is also a thousand-year fox, not good will let you Yunshan and do not know the trace. Therefore, it is very important to clarify the relationship between capital and development, to be wary of capital bubbles, and to use the positive energy of capital.

2013 is China's internet industry capital year, from Ali shares Sina Weibo, to Baidu took over PPS, as well as to the recent sogou mergers and acquisitions turmoil, the capital has become China's Internet industry development of the core driving factor in high-speed operation. Whether is standing in front of Ma Yun, Li, Zhou, or so far still to the word purdah brother, these big guys are not a gearing, murderous, we have reason to believe that the Chinese Internet merger drama may have just begun.

Capital is inherently xianpinaifu, and it is because of the booming of China's internet industry that capital is pouring in, and there is no problem. However, the capital is also a thousand-year fox, not good will let you Yunshan and do not know the trace. Therefore, it is very important to clarify the relationship between capital and development, to be wary of capital bubbles, and to use the positive energy of capital.

Capital is money, this is the most accurate and simple understanding.

What is Money? It is a kind of exchange tool of social resources equivalent quantification.

Capital =money= Resources.

Capital entry, equal to you have money, with money, you can expand the manpower, also can introduce technology equipment, of course, can also like Sina to buy a piece of land built building. Capital is a tool, it does not produce any value in itself, the observation of capital forces must observe the use of capital, so as to uncover the veil, see clearly.

Avoid entering the trap of "addition and merger"

In the business arena, "additive merger" is the most common way of capital operation. The so-called "addition mergers and acquisitions", simply said that "money to buy a few enterprises in." After buying, basically do not meddle in the purchase of any business management activities, the purchase of enterprises still follow their own track. The biggest value of this capital strategy is that it can quickly obtain the corresponding market share increase.

For example, in the same industry, a enterprise market share for 40%,B Enterprise share for the 20%,C Enterprise for the 15%,d Enterprise for 10%. In this industry rankings, B Enterprises beyond A Enterprise is the easiest way to acquire C Enterprise and D Enterprise, namely B+c+d (45%) >a (40%).

The assumption of "addition and merger" is that "if B enterprises get the right to speak in the industry, then the development of B Enterprises will be better". In general, enterprises that use capital are resource-oriented industries, and the current Chinese Internet industry is the most obvious in the electric business sector.

According to the "2013 Q1 self-employed market rankings," the second is the market share of Suning easy to buy 11.2%, compared to the boss of the East 30 more points (Jing Dong: 43.4%). If Jindong to Xun, when, excellence, etc. have bought, then more than the BoE leaped into the industry first on the horizon. Beyond the Beijing-east, the control of the right to speak, the supplier, you can play Su Ning's consistent "class finance" business.

Of course, theoretically feasible, in practice is generally not reliable. "Add mergers and acquisitions" should occur in the second and eldest brother Gap is not large, if the gap is big, it is impossible to play this game. Because you can not have the money to be able to the whole industry to buy it, even if all bought is not necessarily able to achieve the existing purpose.

For example, in the entire business of the market (including self and non-self), the cat has accounted for 51% of the market share, that is, Liu can not be fooled into money, it can not be rich enough to buy everything else. Again such as the search market, Baidu has accounted for nearly 80% of the market, even if the Zhou Sogou, Soso even the people search assorted bought, also less than 20%.

In short, the addition of mergers and acquisitions is not a big difference between the boss and the second between the game.

"Endogenous growth" is the most important

Whatever the way capital operations are, they need to respect basic business laws. The core driving factor of Internet industry is not capital, but technology. "Trade technology" of the way only suitable for traditional industries, in the Internet industry "technology and trade" is always the king, if the capital into the scientific and technological innovation, this is spent on the money.

The Internet is a technology-oriented industry, the birth of each new technology may be born a large number of outstanding enterprises, of course, may also die a large number of enterprises. Because the Internet's scientific and technological innovation is a concept of time, and with the global information gap completely disappear, this time will become more and more short, basically "three years Hedong, three years of Hexi."

Three years ago, happy Net wind, three years later Micro Bo Unified rivers and lakes, and now into the micro-letter era, you bought today a company may be eliminated tomorrow!

Aside from the capital, enterprise development has a basic two: epitaxial and endogenous.

The way of epitaxial growth mainly relies on increasing the investment of resources (personal belongings), which is a way to realize profit on the basis of enlarging enterprise scale and building strong market influence, among which Ali is typical. Epitaxial growth can activate other social and natural resources in addition to innovation through the power of capital, and take this as the core factor to drive the market development. Such enterprises are often the capital markets, mergers and acquisitions market regulars.

Endogenous growth is mainly based on scientific and technological innovation, talent development and other factors to achieve enterprise development. Such enterprises in the research of investment often accounted for a very large proportion, the use of capital will mainly focus on scientific and technological innovation and talent introduction, Google, Apple, including domestic Baidu, Tencent are endogenous growth representatives.

Epitaxial growth and endogenous growth, each have advantages and disadvantages, in the resource-oriented industry, the extension of development is the main mode, and in the internet industry, endogenous growth should become mainstream.

At present, the domestic Internet industry tens of billions of U.S. dollars in capital transactions, used in scientific and technological innovation on the less, smashed in the "expansion of the site" on the many, and seek the extension of growth is much larger than endogenous development, this is not normal. What is even more unusual is that if this storm is allowed to continue, the powerful capital forces will devour the very weak technological innovations that are already on the ground.

Industrial science and technology innovation must have a full competition of the soil, but the capital strength is often to make the strong stronger, weak weaker, the full competition pattern in the capital after the strong intervention in the moment may become oligopoly monopoly. If so, the industrial environment of technological innovation is completely evaporated. From this perspective, as a benchmark in the merger and acquisition of the character, Ma Yun created an era, it is likely to destroy an era.

Capital is a devil, need to learn to harness, need to exert its positive energy.