Small lose: Big company sub-project failure of the mystery of what is not long?

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"Guidance" July 2013, netizens in micro-bo blasting materials, Renren's network of all the business has stopped, has been laid off. All Hi Network is a one-stop wedding preparatory service platform, in July 2012 a new version of the online. This is not Renren's first failure of the sub-project, and earlier relying on Renren network platform of the Windmill Network, hope to rely on Renren platform to do the exploration of social tourism. In the establishment of less than half a year to fail, and in today's network of People's glutinous rice network and the News of the sale, everyone of the column on the exploration of the subproject is difficult to harvest a successful.

July 2013, netizens in micro-bo blasting material, Renren's network of all the business has stopped, has been laid off. All Hi Network is a one-stop wedding preparatory service platform, in July 2012 a new version of the online.

This is not Renren's first failure of the sub-project, and earlier relying on Renren network platform of the Windmill Network, hope to rely on Renren platform to do the exploration of social tourism. In the establishment of less than half a year to fail, and in today's network of People's glutinous rice network and the News of the sale, everyone of the column on the exploration of the subproject is difficult to harvest a successful.

Big companies to launch subprojects unsuccessful, Renren is not the first, and will not be the last one. 2007, Baidu announced its foray into E-commerce, at the same time by Mingyuan as general manager, with a huge flow of Baidu hope that they can be in the electricity market share a cup of soup, 2011 Baidu To make adjustments, announced Consumer-to-consumer business closed, and let the seller transfer their business, this electric business platform even in owning a parent company such as Baidu, Still hard to do.

Of course, the example of Baidu is not a big company to do sub-project failure of the lone example, Tencent's electric dealers will be easy to move after the full capital acquisition, but also unspeakable success, it has tried QQ group purchase, QQ Online shopping mall, but in the field of electrical business still failed to kill a way out. QQ Online shopping is claimed to be put into the 20亿来 to kill into this art market, but today. QQ Online shopping in the field of electricity is still no market influence, and earlier Tencent Pat Net and Taobao compared, the difference is not a magnitude.

Having said the case of these failed business extensions in the country, and looking at the famous international case, Google as the world's top Internet company, its once launched business-based extension business is still unspeakable success. The most famous product of course is Google +, the Google's ambitious product, has in fact been considered a failure, compared with social giant Facebook, influence can be ignored.

Such examples can also cite a long strip, many people have to ask why, why not these giants in other areas like their main business as invincible siege?

One argument is that this is because these projects have not received enough attention. But this example clearly does not hold up. These projects were born with thousands of spoiled gold treasures. Baidu was tilted a lot of traffic, and will now Baidu's heyday of Mingyuan appointed as General manager, also can see Baidu's attention to this project, and in the flow of import and ranking support Baidu also made a lot of effort. Tencent Pat NET on the user base is not less, basically hundreds of millions of QQ account is open to clap. These giants all agree with the long tail theory, so in the resources and flow of the basic open supply, so, the project is not paid attention to a few, after all, most of the project is still very vigorous.

There is also a view that the gene theory, such as Baidu only search and technical genes, Tencent only social gene, so all products can only be social, and Ali only electric quotient gene theory. Some people think that a business start-up 18 months to determine the company's genes and direction. But this gene theory does not fully prove true, Samsung and Siemens are not in this field before the current main business, if the gene theory can be established, then Samsung and Siemens in theory will be difficult to succeed.

Perhaps we can from the Windmill Network project head once reflection, find some big company subproject failure of Commonness, Windmill Network CEO Chen Xiaofeng once in his reflection that internal entrepreneurship is the key, is how to coordinate internal resources.

Since every big company is a stakeholder, every new project is destined to be met with resource coordination. In essence, new projects need to compete with the old system of interest for resources, a cake, two people will certainly not be willing to divide the three people. The new project will be involved in the deployment of personnel, if Daniel is brought to the new business, the original department of course will not be happy, so, these businesses often face problems are internal resource contention, the huge resistance will become one of the factors in the failure of these subprojects.

Of course, the factor certainly not only so simple, some subprojects through the leader's strong personal will has been realized by the separation of the parent company, still difficult to escape the failure, the reason for this can only from the brand and business cooperation angle analysis.

Renren's projects, initially hope to have a strong collaboration with everyone, are highly correlated projects, even the idea is very reasonable, on the social platform users will have different needs, they need to travel, need to marry, need to shop, need to watch video, need to find a job, So the project around this platform to meet different needs came into being. But Renren ignores one of the biggest questions about what the user is doing on this platform. The answer is social, and you want to guide users through the social platform to do this, users can only use it as a second choice, so that although the flow can be imported, but the conversion rate is poor.

But Baidu and Tencent's business extension is not very relevant to extend, for example, Baidu's main business is search, and do not have to do the electrical quotient and search the user group has no matching degree, this is the real use of resources to build another furnace, is completely divorced from the original commercial discourse system, the use of resources to forge a new business discourse system, If you cite an example, if everyone is building from one building to another, let a people go to the B building channel through to go shopping, and Baidu and Tencent basically belong to a building in the center of the city, and then hang the billboard on a floor, let users go to the suburbs of the B floor consumption.

Both of these practices are excessive trust in their own customer resources, so will fail, then why users do not buy it?

The answer is that user habits and the laws of mind dictate that users do not meet all requirements through an application at the same time. The law of mind that a company in the user heart will always have an image, Baidu no matter how much effort in brand building, still will not change their Chinese search application is the first choice of the situation. Ali how hard, in the brand characteristics or still will be identified as the electric business service provider, will still be the first choice of shopping, and Tencent equals QQ, users go to buy books will think of the Amazon, this is the habit of the user, and this user habits have developed a lag, want to easily reverse this user habits, It's like sneakers. Nike Adi, in the Internet, the brand extension of the mental law still works, users will only rely on user preferences, relying on the smallest choice to choose products.

Of course, in addition to the brand's inertia, there is also a reason for the professional decision on the success or failure of the project. Every big successful company has a place of its own, such as the three majors who are good at it, but it does not mean that the Giants are good at everything. Their understanding of other areas is indeed almost a close. It would not be surprising that the Giants would not have been able to do such offline projects if they had bowed down to the bitter projects of O20.

In addition to these factors, I would also like to borrow some examples from the journey to explore why the Giants ' subprojects fail. Projects growing in the greenhouse environment have received too much care, like a child growing up in the greenhouse, can not experience the ravages of wind and rain, and a lot of independent companies and projects, faced with the survival of the life and death, big company's entrepreneurial projects, for internal entrepreneurship, has become very good, Even if not in case there will be a lot of opportunities to go back to do professional managers, which is why the Monkey King sometimes but entrepreneurial wild monster reason.

Of course the boss's will is also a key factor in whether these sub businesses and subprojects can succeed. It is crucial that the boss has much determination. Perhaps this project at this time in the boss heart is still very important, but the twinkling of an eye can not get support, had to die. And at the same time the boss to do this project is the original intention of the business success or failure of the key factors, the boss do child business will generally exist in the following several mentality:

1 tin bogey horse racing thinking. Everyone has seen the article of Tian Bogey horse racing. The boss to do a business is not really want to big him, but sometimes only with a group of inferior horses to spell out the other side of the superior horse, even if not spell out, but also to damage the enemy 8,000, frustrated opponents spirit, such a situation under the circumstances of the project has been a lot of growth is to see

2 Try, follow the mentality. Others do, we also have to do, this is the general boss's mentality, to see other people earn money, we have to do this to make money. In this case, the project will be quick success, a short period of time will die without results.

3 layout industry chain. This is to ensure that the main business development, and on this basis to do the supplement, such projects because of the high correlation, some even in the future will become the new main business growth point, if the founder enough attention, the chances of success will be great.

So the boss to do subprojects and child business mentality will determine the expansion of this large company business can be successful, and these are just a few of the factors of failure, as long as there are large companies exist, such a failure will be repeated again and again.