See how the Internet penis hits

In this era of competition, there will always be a 123 ranking, so there is a big boss of all walks of life to say, the Internet is the same, but here, I would like to think and answer the following questions: (1) whether the Internet can beat the boss of the industry? How to beat the industry dick? Industry second how to effectively use investment and mergers and acquisitions? What is the competitive situation in the online tourism industry? What kind of art dragon should take to defeat the industry boss?

Although my thoughts are not particularly correct and complete, it is a matter of opinion that the answer to the original question is not specific. The main purpose is only to give a shot, but also to invite potential stakeholders, friends can carry out friendly criticism and useful brick.

First, the Internet industry can you beat the Boss?

1. Put the facts first: Most of the industry bosses can not be defeated

I combed the 21 of the Internet segmentation industry boss, the second is not necessarily completely accurate ranking, but also generally not bad.

Through carding, I found that in these 21 subdivision areas, most of the second industry can not defeat the boss. Only a few times beyond is: 360 beyond Jinshan to become the security field boss, Baidu map beyond the gold. For the next few years, it seems that the odds of these dicks overtaking the bosses are still low (though the Internet is always full of miracles).

But we need to redefine the internet second more than the eldest boss, in fact, according to the industrial evolution curve in different stages to treat differently, because the different stages of competition, the second more than the boss of the probability of a big difference.

According to the Theory of industrial evolution, the evolution of industry presents four distinct stages:

The first stage-the start-up stage: The market concentration is low, the market is in the embryonic stage, the space is big, the growth is fast, the enterprise is busy with happy enclosure, the concentration degree is very low, the industry faucet does not appear, each enterprise's market share is below 10%;

The second stage-scale stage: Some leading enterprises appear, the scale has certain advantages, the market resources to its convergence tilt, other enterprises in a certain field began to specialization, leading enterprises market share may reach 30–40%; But the difference between second, old and eldest brother is not very obvious;

The third stage-centralization stage: The market concentration degree greatly enhances, the successful enterprise discovers their most competitive area, the CR3 more than 70%, the leading enterprise status basically stable, the market share exceeds 50%; the second is flung away;

Stage four--equilibrium stage: the industrial concentration degree rises to 90% and achieves the balance; industry Echelon basic formation, eldest brother, second, old and so on clear.

From the above characteristics, the Internet is very consistent with the industry evolution curve of the field. Take a taxi and buy to see, its basic follow the above industrial evolution path, will not too much to repeat.

What needs to be explained is that the internet dick beyond the Boss, is to be treated in stages:

In the start-up stage, because the eldest brother's advantage is not obvious, therefore multifaceted Zhongyuan;

In the scale stage, the eldest figure, the second is also unwilling, through a certain innovation and operational improvements, is likely to surpass the boss (such as the United States Regiment);

In the concentration stage, the position of the eldest brother is basically consolidated, the second may be more than the heart but insufficient strength;

In the balance stage, the market pattern basically forms, each company defends own one party territory, peaceful.

The above 21 subdivision areas, the current basically in the focus or balance phase, so the second beyond the boss case is not many. But in the industry's start-up and large-scale stage, second, the probability of exceeding the boss is much larger. More classic examples include: Taobao beat ebay;

2. After the reason: Internet penis must die

Internet penis can not be the death of the current investment community, it circle consensus, become the boss seems to have become the ring, everyone is dreaming.

About the internet dick is not dead, Snowball founder Fang Sanwen has described in detail, in this quote:

Fang Sanwen that the internet's moat has three:

One is the unique function and user experience so that users repeatedly visit, once repeated visits, it became its own users;

Second, the user relationship, as mentioned above, if there is a user, there is no relationship, users will only need you when they think of you;

Three is UGC. The more content users create, the more virtual assets he puts into the site (content + relationships), when the user created content to a certain extent, it is essentially to their own virtual assets to the site, the possibility of repeated visits to the site greatly improved, this is the UGC of the formation of the virtual asset mortgage effect.

Based on such a virtuous circle, the Internet boss is like a huge black hole, as a snowball, rolling bigger. Therefore, the side of the three text that the real Internet company must be a monopoly, the result of the monopoly is not the future of the second, not to die. Recently, Fu also expressed in the article about Facebook acquisition WhatApp, the internet dick beyond the boss is basically impossible view.

Internet companies can be divided into five basic types: information-type Internet (such as news portal), tool-type Internet (such as security), transaction-type Internet (e-commerce), user-generated content-oriented internet (such as forums,), relational Internet (SNS, etc.). These five types match each other and form other patterns.

Regardless of the mode, the main profit model is: advertising, value-added services, trading commissions, membership fees (license fee) and so on.

No matter which profit model, measuring the profit level of an internet company, but a few key indicators: User size, customer unit price, conversion rate of three main indicators to determine how much money (income), user access to costs, user service costs generally determine how much money to spend. Therefore, for any company, to earn more profits, it is nothing more than the first three indicators to try to reduce the latter two indicators.

The internet is an industry with obvious scale effect, diminishing marginal cost, prominent Word-of-mouth effect, and excellent company circulating. It is precisely because of these characteristics that the average user access costs, customer service costs as the scale of the constant increase, is constantly reduced, so as to leave more profit space.

As a result, the larger the company, the more sources of income, the more obvious the scale effect of the income, and the lower the cost of the cost, and thus the higher the profit. This is also from the financial logic, why the Internet boss is very valuable investment.

Yet the conclusion that Internet dicks are not dead is still a bit too absolute: one is the second is not death may be an infinite long ending, like saying that people end up with a death, two is even if the penis is not dead, Dick still has a very important value, this value may be its customers, resources, flow, ranked value.

On the basis of the combination of fact and reason, we may think that in the industry concentration, the balance stage, the industry second than the boss is very difficult.

Second, the industry how to surpass the boss?

1. Continue to lay the facts:

Above mentioned some of the internet dick beyond the eldest brother case, continue to list some (not necessarily the eldest, may be the second, old is beyond):

2. Proceed to the summary:

Listed above a few of the second (or inferior competitors) is how to surpass the Boss (or the industry leader), we can basically sum up in different stages, the second to exceed the boss of the way:

To sum up, I think that the internet dick beyond the boss's way is nothing more than the following:

One is to differentiate survival: or focus, choose a relatively segmented market, focus on breakthrough; or the choice is not yet mature, has not been the giant attention, but the future is very likely to become a big market with the size of a similar area. But the former may help the penis survive in the industry, slit, but it may be hard to beat the leader, because the market is still within the scope of the Giants, once the boss turned around, the second will face great pressure; the latter to succeed, one is that the field is determined to have a huge market space, and the second is the boss delayed attention , or when it is valued, it does not have the advantage of entering the field.

Second, optimize operation: Optimize operation, improve user experience, improve information ability, optimize decision-making mechanism, and form dynamic and efficient team. Operations may be the basis for all businesses to have a long and healthy existence. Operation of the strengthening, trained is the internal strength, such as the United States Regiment, can be in the field of group buying to boil into the boss, operation is its kingly. Operation is slow-soup, is the gene, only in the early development of enterprise accumulation down, can become the core competitiveness of enterprises. Thus the operation is more suitable for marathon, road horse horsepower, is slowly accumulate quantitative change to form qualitative change, suitable in the start-up, large-scale stage use.

Third, the promotion of radical: the second to surpass the eldest brother, I am afraid the weak promotion of boiled frog is difficult to have a clear effect. Only one dose of dose. For example, the promotion of Baidu Map, is under a large sums of the expense of the 58 city to the market far behind (not the second Super boss, is the eldest boss far away from the second), also rely on the overwhelming roar out of the magical website. From this, the second to surpass the boss, need to rely on radical promotion means, or is their own money, or is rich second-generation, have a good dad.

Four is disruptive innovation: I personally divide innovation into continuous innovation and destructive innovation. My feeling is that in the start-up stage and the scale stage, when we are more to fight, the second use of continuous innovation may have the opportunity, but in the concentration and balance stage, continuous innovation is the leader to maintain the way, disruptive innovation is the way the penis should take. Unless the bosses had dozed off and made a mistake, they would have tried to defeat the boss with continuous innovation, which seemed impossible.

Five is the acquisition: This is an important weapon that destroys the balance of the industry and is used most frequently in the centralized and balanced phases. The following article describes in detail.

Six is Cross-border: The biggest feature of the Internet in recent years may be that you don't know who is next to subvert you. Apple from PC to mobile phone, Alibaba from Alipay to balance treasure, music from video to film to television ... I think, beat QQ is not the next QQ, beat Alipay, nor is the next Alipay. The biggest competitor is not the current Erlengzi, but the sudden popping out of other fields. Cross-border innovation has become an important force for Internet subversion.

Iii. How capital achieves corporate strategy

1. Industrial integration efficiency is much higher than the level of operational management

In my opinion, enterprise competition can be divided into two levels: one is the level of operation management and the other is the level of industrial integration. The operation management level is the foundation of the Enterprise, to the company is to stabilize the foundation, to raise efficiency, its effect is likely to be 10; Industrial integration level, is the enterprise strategy adjustment, layout, optimization, is the enterprise from quantitative to qualitative change, its effect may be 100. The level of industrial integration is inseparable from the support of capital. The impact of industrial integration and mergers and acquisitions on industry is fission, which leads to the change of the whole industry competition pattern and industrial chain relationship.

2. What kind of company has strong industry integration ability

I think the company's industrial integration capacity of the key lies in three: first, the management team has a strong industrial integration concept; The second is that the management team has sufficient decision-making power and decision-making motivation, and the third is that the company has sufficient low-cost sources of funding.

The first two aspects are the entrepreneur spirit and the enterprise governance structure respectively. The concept of industrial integration refers to the entrepreneur from the macroscopic, meso-level to judge the macro general trend, industry trends, and then the micro-layout of enterprises, the vertical and horizontal joint, is the entrepreneurial vision, the pattern of the size of the embodiment. DeLong is a very sad but respectable team, and their work on the integration of China's automotive industry chain is breathtaking.

We can be divided into corporate governance structure: a single large, elite team-type (the core team accounted for large shares), the decapitated type (shares are extremely dispersed), the master is not the dominant type (professional managers). In the first two kinds of governance structure, because of the combination of ownership and management, it leads to a stronger motivation and higher decision-making power to engage in mergers and acquisitions activities. However, the management structure without the rule-headed type is obviously either lack of motivation or lack of vigour or lack of efficiency or internal opinions.

The amount of capital required for mergers and acquisitions, most of which comes from equity or leveraged financing, makes it possible for companies to have enough ammunition for bulk mergers only if they have sufficient low-cost capital. and sufficient sources of funding have three prerequisites, first, the company's market value is large enough, and the second is the two-tier price ratio is significantly higher than the first market, three owners have sufficient shares can be paid for shares, diluted, can still maintain their own controlling rights.

3. How to carry out industry integration

For a company with lofty ambitions, its first strategy is the strategy of industrial integration, and then the product innovation strategy.

The industrial integration strategy is carried out at two levels, horizontal mergers and acquisitions, gain market share, improve industry discourse power, improve scale economy, vertical industrial distribution, open up industrial chain, improve industrial chain efficiency, and form value chain competitiveness. Horizontal vertical integration, the formation of industrial concentration and industrial integration, the formation of a cover-type competitiveness.

For the industry second, I think the merger strategy can be from the following point of view:

First, must make big strokes, do can change the industry pattern of large mergers and acquisitions; only in this way can break the original interests of the pattern, so that the boss from the initiative into a passive. The second must not be boss led the nose, to find a way around the eldest brother play.

The second is to have a guard, to attack. Shou is to expand their market share, to keep their own roots, to consolidate their old line; attack is the weakness of attacking competitors, integrate the future market growth point, integrate the industrial chain;

Third, invest more in some small projects that may change the pattern of the industry in the future. For new market segments and new models that have a greater challenge to the existing model, take a small amount of investment to find potential future projects.

If industry second and old merge, old nature feel pressure; If the second will be upstream and downstream industry chain integration, the eldest brother alone is also tied hands and feet. For example, Baidu acquired 91, Archie Art acquired PPS, Alibaba acquisition of the map, and so on, all of the industrial ecological chain caused a huge impact.

In the online travel industry, for example, I combed nearly 500 online tourism projects last year, according to the new business area, the new business model and other dimensions, it is divided into nearly 40 sub industries, according to the importance (market, whether or not with the Arts Dragon Competition or complementarity, growth speed, whether there is a great threat to the art Dragon), the degree of response ( Whether the art dragon has the ability to spend a lot of time and whether it needs to pay a great deal of human and financial resources is divided into four quadrants of chicken, hedgehog, lamb and puffer fish.

I think that these classifications can also be applied to other industry mergers and acquisitions strategy. As an industry dick can be ignored for the chicken and hedgehog projects, but for the lamb items should be eaten immediately, as far as possible holding; for fugu items can participate in investment, watch the change, until the appropriate time to eat again.

4. An industry consolidation case

From the development of the video network, the current market value is 42 billion, p/e is 215 times times, 2012 year income 1.167 billion, net profit 190 million, 2013 years ago 9 months, income 1.365 billion, net profit 170 million. 2013 annual income is expected to be 1.8 billion, net profit of 250 million yuan. 250 million yuan of profit, support 40 billion of the market value.

At present, Le View is no longer a simple video site, it is already China's top three film companies, its music video TV sales more than 1.2 million units, boxes more than 900,000 units.

Through the layout of capital, music Vision has formed the layout of the industrial chain of video content-network traffic-intelligent terminals, and each strategic merger and acquisition has greatly improved its share price and improved its ability to merge and acquisition. However, 2 years ago, we did not think of the situation, we feel more incredible is that all the metamorphosis in just two years to complete.

Based on the above three foundations, the merger strategy of Lok-vision first, the music has a certain market value scale, can support its completion of bulk mergers and acquisitions, the second is two-tier market valuation is far higher than a market, the third is the management of the video network, the board of directors, the shareholder layer of the three-tier unity, leading to a decision.

Market value management has become a modern company's important way of life and value realization, but many companies are currently only familiar with management, operation, income and profit, not familiar with market value management and industrial mergers and acquisitions. The strategy of music vision gives us great inspiration and gives us a lesson on how companies use capital, how to carry out effective market capitalisation management, and promote the strategic layout and transformation of the company.

Iv. the current competitive status of online tourism industry

We must recognize a few facts in the tourism industry and acknowledge several current situations:

First, the competition in the field of air tickets and hotels has been basically at the end of the centralized stage and is about to enter the equilibrium stage:

Air ticket field to where, Ctrip, Tembong and other giants status of basic determination; The hotel field Ctrip boss position unbreakable, art Dragon second position is also basically determine, the United States Regiment, go where, the same way, live where the Echelon follow, currently hotel OTA field of entrepreneurs have been very few.

The second is that the war on online travel has been burning in the fields of tickets, train tickets, cruise ships, vacations, car rentals and so on:

Obviously the battle of the air ticket has already stalled, the hotel's battle basically into the end, the victory and defeat has been divided, the war on holiday also have a dozen, tickets, cruise, car rental, train tickets of the war is about to ignite;

Third, a large number of entrepreneurs emerging in outbound travel, peripheral travel and other new subdivision areas:

I think that the entrepreneur is a keen market vane, a large number of entrepreneurs emerging in outbound travel, peripheral travel, tickets and other new subdivision areas, there are many entrepreneurs to adopt new models, such as limited-timed special selling, Peer-to-peer, which means that these areas will become an important part of the industry in the next 3-5 years;

Four is the online tourism from single business competition to the whole industry chain competition:

Ctrip in the ticket + hotel business Unbreakable while, through capital strategy, in the Mobile hotel, short rent, car rental, raiders, overseas tourism and other fields drop layout, but also in the ticket, cruise, visa and other fields to invest a lot of resources; where to go in the hotel, Raiders, locals, tickets and other new business areas also strengthen the layout.

On the mobile side, because of the cost of app downloads, users will be more inclined to provide more reliable services to the app. One-stop service will be the mainstream of the future, but different from the professional positioning of the PC side.

Whether it is from consumer preferences or earnings from companies, many lines of business appear to be more popular with consumers, sharing more costs and reducing expense rates.

Five is the company on the mobile side of the hotel competition is basically at the same level, art Dragon has no obvious advantages:

In 2007-2012 years, because of Ctrip's drowsiness, the Art Dragon has acquired a certain amount of time to catch up. But with Ctrip's awakening and the return of cattle, in the mobile end of the competitive advantage of the dragon is not obvious, Ctrip, art in the same starting line, and compared with the United States, even in the user experience, backstage operation and so on, the art dragon still has a certain gap.

Six is the art dragon in line tourism field of second status danger:

The art dragon has long been considered the second to travel online, but now with the listing, from the market value, the second position has been lost, the cattle, the same way, and other companies, although not listed, but its valuation is not currently less than the Art dragon. From the scale of business, in the hotel area, the United States, where to follow closely after the pressure is very high. According to the latest earnings, 2013 Q4, Art Dragon Hotel room night volume is Ctrip 58%, the chain down 8%.

In combination, I summarize the current industry features of online travel: Air tickets + hotel field into the end of the centralized stage, the market structure is basically determined; Mobile end hotels are basically on the same starting line; New business areas are blossoming, ready to go; new business or investment layout, the industrial chain layout becomes its competition strategy.

Based on the previous analysis, online tourism in the field of hotel, air tickets in the field of competition is basically determined, according to the first part of the view, at this stage, the second to defeat the boss is very low probability.

Of course, this is only experience and assumptions, the market is always a great deal of uncertainty, so the future can not be conclusive.

How should the art Dragon defeat the industry boss?

We have summed up the internet to beat the boss of several ways: first, the survival of the difference, the second is the operation, the third is to promote, four is destructive innovation, five is mergers and acquisitions, six is cross-border.

I think, the first way, differential survival, in 2007-2012, the Art dragon arm, focus on the hotel business, the center of gravity from the call to the PC, due to the negligence of Ctrip, quite effective, but since the second half of 2012, with Ctrip's awakening, the effect appears to be falling.

But there is no denying that there are still many innovative opportunities in the future hotel areas, such as the way to stay, marketing methods, and so on, if the art dragon caught, perhaps there will be new opportunities in the future.

The second way, operation, because the operation is a slow fire soup, relying on the accumulation of time, the accumulation of quantitative changes, we may need a long time, in order to accumulate from quantitative change. However, due to the rapid change of online tourism competition, there may not be much time left.

The third way to invest heavily, the past few years, the Art Dragon has tried, achieved a certain effect, but the prerequisite for good results is that competitors do not have money or do not follow up, if the follow-up and more efforts than we, the effect will be greatly reduced; Of course, the second way there is a free flow, but the world does not have a free lunch, Unless parents give children selfless love, like Baidu love to go where. Perhaps if can find a rich have flow of godfather, such as Tencent, Ali, may be different circumstances;

The fourth way, disruptive innovation, may have the opportunity, but or need to break wrist, want to practice martial, must first from the palace, such as the announcement OTA free, completely completely break OTA mode, or need to have an innovative soil and atmosphere, can create a great product. Like 3,601, with security guards, can make a safe browser, can get out of 360 mobile phone distribution;

The fifth way of mergers and acquisitions, may be the most opportunities, but I mentioned three points, first, to the big plate, two to the price of P/E relative to the first market, the third is to combine ownership and management.

The sixth way is Cross-border. To apply the existing advantages of art dragon to other fields, perhaps one day the art dragon can become the largest short-term rental apartment operators, become the largest car rental service provider, the largest travel resort real estate operators, the largest intelligent door locks, the largest PMS, the largest travel insurance ...