China Internet enters monopoly era entrepreneurs four advantages to survive

China's internet is entering the era of oligopoly from free competition.

Alibaba, Tencent, Baidu, the three giants of recent acquisitions, shares of the behavior is evolving into the annexation of small and medium-sized companies through capital operations, the redistribution of the Internet power map situation. Data show that the current Chinese Internet listed companies market value of about 800 billion yuan, and Tencent and Baidu two companies occupy 560 billion, not listed Alibaba even in the most conservative way of calculation, its valuation has exceeded 450 billion yuan.

On the other hand, as the Overseas Listing window closes, the dollar VC lacks the effective exit mechanism, causes the domestic venture capital market to enter the trough, the start-up company financing is extremely difficult, the giant's alliances more makes should this already stretched the start-up company survival environment to be even worse.

Products by the giant imitation plagiarism, the user channel by the giant monopoly, capital by the giant oppression, for those who are still in the entrepreneurial stage, no hematopoietic ability of the Internet companies, how to break this dilemma? With the advent of the giant monopoly era, what will entrepreneurs do in the future?

In the giant encirclement and suppression, successfully built "My name MT" entrepreneur Shan Tiger advised peers, entrepreneurship is to roll the dice, stick to go down only if there will be shaking to the leopard that day.

In fact, in the past few years, even if the Giants have monopolized the majority of the Internet resources, but they have been defeated by the company's case is still not poor, in the video field of the huge investment in Sohu watched the start-up companies Youku, potatoes are emerging and listed, 2012 After the integration of cool potato market share is to make Sohu video remote unreachable.

2011 Star Pioneering company belongs to Beauty said, the company set up only 2 years has completed the Tricycle financing, and one by one brought hot "social electric quotient". Beautiful said the success of the market to send a glimpse of the electricity business Tencent saw a glimmer of light, Tencent's original choice is not a stake in Beauty said, but after the demonstration will be the integration of fashion channels, hoping to use Tencent's huge resources and beauty to say a war and replace, but in a few months after the project will fail to end, Tencent investment in the final imitation of the failure of the case, in order to rob the power of the flow of the import has to share the beautiful said.

Other cases include the fact that Baidu, which already occupies a traffic portal on the PC side, is doing nothing on the mobile internet, but it is the ucweb of startups, and now it has become an important entry point for mobile Internet traffic; Tencent's strong alliance with Groupon did not highlight any advantage in the group buying market, against the U.S. Handle, such as start-up company strangulation; the Tencent Mobile Internet department, which had been placed in high hopes for several years without any subversive products, is a pianan of the Guangzhou Institute for Tencent to get tickets for the mobile internet.

We have an analysis of how these entrepreneurial companies survive in the Giants ' dilemma, and sum up the four advantages of startups in the face of Giants, hoping to share them with entrepreneurs in the era of giant monopolies.

The advantage of a start-up company, efficiency first

For a giant of thousands of or even tens of thousands of people, managing such a large organization relies more on KPIs and institutionalization to ensure executive power, but on the other hand, institutionalized management can lead to problems such as lack of innovation and inefficiency in enterprises. Leave NetEase entrepreneurial Ding Xiuhong has blunt, Big Cola in the first two years of creation is efficiency first. Previously in NetEase as deputy editor-in-chief of him, the big company disease has a firsthand experience.

Comment: For a giant, any decision needs to be argued over and over, and as the Giants meet and discuss, startups are already starting to work. Start-up companies have a low cost of trial and error, and can be more flexible than the Giants to try more direction.

Advantages of a start-up company two, you have nothing

Tencent in imitation of beauty said after the failure, but also can choose to capital operation of the way to share the beautiful said, but for beautiful said, if once by Tencent imitation success, will have nothing. Similar situation also happened in Sohu video against Youku, Baidu against UC case. Back to the parent company's Sohu Video can rely on the group's continuous blood transfusion tolerance development slow, even if the Sohu video failure, the worst result is Sohu lost a core business, Baidu even in mobile internet inaction, rely on the PC side near monopoly market position, can still survive. But for Youku or UCWeb at the time, a city pool is not to be lost, because there is no retreat.

Comment: The new business for the Giants, just to expand the need for expansion, in most cases will not have the determination to burn, for if the failure of the entrepreneurs have nothing to do it easier to do their best.

Entrepreneurial Advantage three, rely on intuition rather than report data

Gathering time CEO Lee Colling in the memory of his entrepreneurial career, will yy voice business as a turning point of the company. NetEase has a short time because the IM team needs to burn money to affect the earnings data, as well as the voice business embedded game proposal was opposed by the game business and the bubble team was abolished. NetEase cut off the IM department staff for the Lee Colling, who was eager to develop voice business, simply unsanitary, later development also proved that it is the addition of NetEase was cut staff, set up a yy voice of the basic technical framework, the gathering era also by virtue of YY voice this core business and at the end of 2012 landed in Nasdaq.

Comment on: NetEase give up IM business at that time to see that there is no fault, short-term see prospects and need to continue to burn money business will certainly affect NetEase's earnings data, compared to its own business, at that time voice in NetEase internal is a non-core business, and the game is NetEase Lifeline, support the interests of the core department is not wrong. In contrast to the Giants who stare at report data every day, the innate acumen of the entrepreneur will be the giant's killer.

Advantages of pioneering companies four, no resources can only go outside to rob

Popular online CEO Lo Jiangchun once said that, as long as not make the same mistake, the company allows employees to try the wrong, only in the constant trial and error to know what is right. Another entrepreneur who has worked in a multinational company for years says that in big companies, in the start-up company is to do the right thing, the difference is that in large companies, as long as the right person, do wrong things may be right, if the wrong person, do the right thing may be wrong, and the start-up company at all times facing the survival, There is not much resources to fight personnel.

Comment on: Start-up companies do not have too many resources, need resources to fight from outside, also do not need to deal with more complex people or things, the company died everyone together without food to eat. The Giants have too much resources, leading to "resources + investment = performance" These concepts of the prevalence, but the opposite of the coin is, simply smashing resources in the Internet industry failure cases abound, the market's sharpness, the right way to do things, than blindly resources input more important.