Talk about the choice of direction of entrepreneurship

Now the mobile Internet business can be described as very hot, but also read some entrepreneurial teams and works, and sometimes they think about themselves, if you want to be a mobile product, you should choose what entry point? Some time ago, wrote articles Blog about specific products on mobile social app thinking, here to talk about the choice of direction:

From a market scale point of view, some of the market belongs to the vertical areas of the market, such as JavaEye do IT technology crowd, some markets belong to a wide range of large markets, such as flickr image sharing site, not limited user groups; from the dependence on demand Some requirements are rigid requirements, such as mobile address book software, music software, weather software, and photographing software, which are requirements that most users will use. Some of the requirements are non-rigid requirements and may not be used by many users as in Figure shows.

The advantage of being a vertical market is that the competition is not intense and there can be plenty of room for development and trial and error. The downside is that it develops to a certain degree and easily touches the ceiling. The benefit of being a broad market is that the ceiling is high However, the competition in the industry will be very fierce. In particular, large companies can easily squeeze in to destroy you, so they have their own advantages and disadvantages.

Rigid demand for products, the user's dependence will be stronger, not easily marginalized by competitors, such as QQ is such; rather than the just-needed products, because the alternative is too strong, so even get a lot of users, but users The loss may also be high.

Combined with product demand and market size, the worst possibility is to do a vertical market with non-rigid demand, and the user's needs will be highly substitutable. In the future, the potential market capacity is limited. Such a business start-up direction may have Big problem

Secondly, worse is the extensive market of non-rigid demand. Although the market size may be very large, because of the non-rigid demand, the user needs can be replaced by the strong one. Because of the large market and easy access to competitors, the success is also more difficult.

The better one is the vertical market for rigid demand, the product is not very substitutable, the competitor is small, there is plenty of time and trial and error space, and when a solid vertical occupation of the market can be obtained Enough high profits, although may not IPO, it is difficult to get the capital market recognition. However, after all, the IPO to start a very small number, to do a very competitive and not fierce competition company is already a very good choice, and venture risk is not so high.

A broad market for rigid demand is often the most enticing direction for startups. It must be one after another of a series of startups and start-ups that compete equally well on the same terms, with high chances and risks, and high probability of failure. But once successful, Possible IPO. In a broad market for rigid demand, there are two more subdivisions:

1, the product just blank market, there is a very clear just need, but the market has not yet appeared to meet the needs of the product. Competition in this situation is the most tragic, all entrepreneurial teams are staking their names, spelling is the speed of product introduction, occupying the user's speed, the mid to late will evolve into the scale of financing, the speed is the key factor in determining success or failure, For example, a few years ago the video site.

To do business in this direction, in particular, to test the entrepreneurial team's operational capabilities and marketing capabilities, how to quickly obtain large-scale users, but less demanding on products and research and development, so suitable for speed operation and financing team, typical Case Youku.

2, the full competition of the product just the market, but did not appear killer products. In other words, although this market is already flooded with innumerable products, it has just never been well served. In this case, the user operation is not particularly important, the speed is not a deciding factor in success or failure, but the team's product design ability determines the success or failure, more need you to work slowly.

The typical case of this situation is Apple: MP3 before the advent of the iPod market has been fully competitive, but the iPod better meet the just need to listen to music, so successful; before the advent of the iPhone, the smartphone market is also fully competitive, but the iPhone Redefined the smart phone; before the advent of the iPad, the Internet was also bad street, but the iPad also ruled the Internet market.

For an entrepreneurial team, the selection of suitable for their own business direction is actually very important, for example, you need to examine their strengths and weaknesses, our team is the product and R & D ability or operating and financing ability? Our team belongs to Execution is very good, fast action team to do things, or the pursuit of quality, special product to do the team?

If your team is a speed team or operating team, then it is suitable for just the blank product market, with your speed and user operational capacity to stumble. If your team is a product team or R & D team , Then it is very suitable for the market just need vertical market, or just full product competition, using your product and research and development capabilities, to be a product beyond the competition, and thus success.