Morgan Stanley's respected internet Law 1

A few days ago, the book, "Internet Business Rules", describes some of the strategic ideas that Morgan Stanley is advocating for internet commerce.  　　 In the years I've been working on the Internet, I've seen a lot of companies doing things that violate these ideas, so I'll share some of the ideas that I think are more important.          The law of uniqueness says, "at all costs, avoid falling into the category of second place." There is a big difference between creating a brand on the internet and creating a brand in the real world. In the real world, because traditional channels will adhere to the "second supply channel", the second or third brands always have their living space, such as Kodak and Fuji, Nike and Adi, Lenovo and founder, Coca-Cola and Pepsi.　　 For example, a market to maximize profits, but also in order to be able to control the suppliers, Coca-Cola will also sell Pepsi.


at the same time, the traditional regional nature will not let a company monopolize the market.       For example, a good supermarket can only cover a city or the surrounding area of dozens of kilometers, a newspaper media, the content is good, often can only cover certain areas or a certain type of people. The internet is different, the more users the Internet companies attract, the greater the value and stickiness of their platforms, which in turn attracts more users. For example, if you are surrounded by friends with QQ, you will not appear outdated, or even somewhat antisocial; if most of your classmates become users of the network, you will appear to be detached from the masses.


Moreover, the Internet has almost no geographical limits and no restrictions on numbers. The increase in the number of users does not result in a proportional increase in costs. On the contrary, when you are growing larger, marginal costs will only get smaller. Moreover, when the number of users of a network platform reaches a certain scale, the platform will become an indispensable part of the user's life, and the good user experience on the platform will also lock the user. The result is "winner-take-all", with a handful of websites mastering almost all of the business, leaving almost nothing left. 　　This is the law of uniqueness. 　　Look around the domestic internet companies, winner-took-all phenomenon abound: search Baidu completely monopolized the market; Ctrip and the same start, the same model, and now Ctrip is dozens of times times the market value of billion; the mailbox is NetEase basically monopolized the market; after Taobao was strong, ebay gave up the Chinese market. 　　What is the revelation of this phenomenon to us? 　　One of the revelations is that if you find that your business already has a strong competitor, you should adjust your position, be in the first place in a more segmented market, monopolize your niche, and become a leader in your niche. 　　And if you're a new venture, that must also not and the existing very strong web site all-round competition, should find more subdivision of the opportunity, or to find the weakness of the current strong competitors, establish your own core competitiveness, at the same time need to prepare enough to exceed the opponent's capital, otherwise can only be head to touch blood flow. Now the domestic Internet enterprises in the same field of fierce competition there are many, but in the future, they will be in the fierce competition to achieve the industry's uniqueness.


first said the portal, said before the three portals, but now NetEase has completely transformed into a game company, and NetEase's main assets are just mailboxes, the equivalent of NetEase has been completely and Sina and Sohu dislocation management. Sina and Sohu, now two competition has been white-hot, I have given them ads, they consider the important parameter is not the size of the budget, but these budgets are placed on their own website or other competitors of the site.


talk about the book-oriented website of the Business-to-consumer. Dangdang and great power, the basic no longer the rise of large-scale book retail sites. And their competition has been very white-hot, are in the largest online book mall, and their price station has become anxious state, 90% of the book Price on the 1 cents, the price war has allowed both sides of the gross margin down to 20%, the day of profit appears to be in the foreseeable future. I predict that in the next 2 years, there will be a big merger between the two, or one of the strategy of a major transformation of the strategic dislocation, or a strategic failure to exit the market.


　　The law of uniqueness also tells us that the competition of the Internet is very cruel, either first or death.