Has the internet entered the Red Sea?

Source: Internet
Author: User
Keywords Internet competition netizens has been

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Recently a period of time often listen to friends, "the internet has become a traditional industry, fierce competition, no entrepreneurial opportunities, career change to new industries." "Listen to friends, I often reflect on the internet really into the blue sea?" Should we turn to new industries?

Thinking carefully, I do not think that the internet has really entered the Red Sea, the Internet has many opportunities, the Internet or blue sea, my analysis is as follows:

Wang Yingxiong Point of view: Internet revenue is very high profit margins, competition is not sufficient.

The internet has been on a massive scale in China since 97, after 2001 years of Bubbles, and by 2003 it really has a real income, and it can actually feed itself, really called an industry for only 4 years. Now the competition is not enough, China's several listed companies in the 2007-year two quarterly earnings show that the Internet companies have high profit margins, the highest if Tencent, incredibly 73% of the net profit. Several other margins are also above 30%. and the traditional industry annual gross profit percentage ratio, is the absolute blue ocean.

Wang Yingxiong Point of view: from the Netizen's situation, the Internet still has a great place to dig.

The internet has increased 200 times times from 620,000 Internet users in 1997 to 137 million in January 2007, and the most important is that this trend will continue. Of course, in addition to the increase in Internet users, there are many novice users will become senior netizens. Junior netizens may use only a small part of the Internet's functionality, and senior Internet users will be able to use more of the functionality that is bound to produce more value-added.

Wang Yingxiong: From the application perspective, the Internet has not exhausted its commercial value.

The Internet from the application point of view, many industries have not been done, such as portals and instant messaging, the portal was a few large oligopoly, I believe that no one is willing to do a Sina or Sohu. Because this is already impossible, a few big portals in the way, it is really difficult to do a new one. But I don't think the internet has no place to dig. Where's the commercial value? I think China hasn't dug up at least in terms of real social relationships like Facebook, which may be due to low internet penetration and domestic specifics. There are also a number of segments that are not fully tapped, which may be related to the actual situation in these industries.

Wang Yingxiong View Four: The application of new technology will regain the forefront of the internet blue Sea.

Speaking of the application of new technology can not mention Google, although Google in China's market share is not high, but Google has a lot of innovative new products out. For example, Google Earth, who would not think 10 years ago may be the country's highly confidential satellite map was civilian, and is free to users. In addition to Google, there are many companies set up Internet laboratories, such as Tencent, and then Lenovo. Here to introduce a Lenovo laboratory products best4c provide online Web Drawing function, very easy to use, we can try.

Wang Yingxiong Point Five: the integration of wireless internet and Internet will bring the largest and most direct blue ocean.

Wireless Internet also has a view called Wireless information Network, how to call me not too much advice, whether it is wireless internet and wireless information network, he and the traditional internet convergence is an inevitable trend. Wireless internet in mobile phone can be on the broadband (I think the 3G officially opened as a sign), will bring enormous economic benefits, and the Internet and wireless internet can be organically combined with the site will be able to bring the largest blue ocean.

Wang Yingxiong Point Six: The majority of people who say the internet has entered the Red Sea because the industry is too deep.

Many people say that the internet has entered the Red Sea. I think most people get into some kind of industry detail, an ordinary employee in a large internet company who sees the organization and structured management of its company cannot break through this pattern and is limited to the details of that model, which is now not replicable, Like making a new Internet portal. Of course he will see too much of the Red Sea, not the blue sea, if you can jump out of this fixed mode of thinking will certainly see a new starting point, New Hope.

The blue Sea of the Internet is a benevolent and benevolent. But I think the internet is more characteristic of the blue sea than other industries, and it has the characteristics of emerging markets.

Appendix:

Noun Explanation: Red Sea Strategy

Mainly in the already known market space competition, here you are less expensive than your opponent, or a strategy that is more differentiated than he is, and the rules of the game have been set, according to the rules of the game, follow the rules of the game to fight against the competition, What we want to analyze is the competition situation and the condition of the existing industry, which is the variable and factor that the Red Sea Strategy needs to study.

The Blue Ocean Strategy

Not limited to existing industrial boundaries, but to break the boundary conditions, Blue ocean is in a new market in the world to open up new markets.

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