The navigation was finally taken down by the free policy

August 28, Baidu announced that the original fee of 30 yuan Baidu Navigation comprehensive permanent free, 4 hours later, the German navigation also announced free. The navigation software, which had enjoyed professional bonuses, was finally faced with "barbarians at the door" after years of stability. Free mode has been in many areas of siege Valerian, it is to break the old rules and the old pattern of the sharp weapon, this will not only the entire business of the navigation software vendors to pull down the water, but also will impact the professional navigation field, as well as the impact of future car networking market patterns.

1, free strategy, gold hit, Baidu Rob Market

Baidu is really a wolf in the mobile internet field recently. In the mobile map market, Baidu Map and the strength of the map of the high, and in the navigation market, Gould is the eldest, Baidu is a new player (the first half of last year only dependent on the Baidu map launched). Compared to participating in the free two navigation companies, for the gold, due to precipitation for many years, the market share of high, once the money brought by the cash value is not expensive, free strategy may bring a certain impact, and Baidu Navigation as a new person, is obviously to expand the market share free, short-term pay a relatively small price.

2, professional navigation area of the moat will be destroyed in the free

Navigation applications as a professional tool, initially in the automotive professional navigation equipment market and hardware bundled with the sale, navigation software because of its large investment, high professional, there is a wide moat, but the business model is mainly business-to-business. After entering the mobile internet, he took the lead in the transformation, and gradually from Business-to-business to the company, but the professional still there, several major manufacturers still maintain the charging mode. And this time Baidu and Gould announced free, will end the feast of professional navigation manufacturers.

First, iOS and Android platform navigation software is not free words can only suffer from customer churn. Second, the shock wave will gradually affect the professional navigation market. Originally professional navigation market, hardware + software sales Model: Navigation software vendors sold to hardware manufacturers, packaged into the final product sales, so in the final product sales, a map how much money, two maps how much money, can be sold in a separate file. But as the substitution of mobile phones and pad becomes stronger, the future of professional navigation products is becoming more and more uncertain (the author previously on the car Networking article has detailed), iOS and Android platform navigation software free will be more salt on the wound, even navigation software is free, professional navigation products may return to only sell hardware, In this way navigation software not only the business market can not receive money, Business-to-business market will also be impacted.

And the other lay injured may be Microsoft, the previous professional navigation equipment is often based on win CE, the future of the device will be equipped with Android platform more and more.

3. Free mode, indicating the development of navigation from tool to portal platform

Hake, roundabouts, formerly navigation is a tool-type application, software charges + follow-up update fee is a reasonable business model, if free, to support the operation of products, must be derived from other ways to obtain revenue, Baidu and gold announced at the same time free, so that the Giants are optimistic about the car scene of the entry level application, Competition from the simple tool competition into a comprehensive platform competition, navigation has gradually become the vehicle life field of entry platform, which is actually the concept of car networking. So there will be several effects:

First, the navigation company is going to live alongside the big tree. The original only to do the navigation of the company by less than the source of income, more and more difficult with the overall layout of the company to compete, can only take refuge in the Giants, otherwise can only go to the niche market or industry market, the next step to see whether Tencent will not hand now has no backers of the navigation Company

Second, the giant's original application resources will accelerate the integration of navigation. For example, Baidu acquisition of Glutinous rice, as well as the ability to search lbs, behind the merchant resources such as Ali, the navigation will evolve into the overall capacity and resources of the dispute, or even open platform.

Third, Baidu and gold will start to compete head-on with car manufacturers ' connections. In front of the analysis, with the Navigation field shuffle, free mode is bound to let Baidu and gold to become a car in the portal to get new profit opportunities, this is bound to car manufacturers layout car networking There is competition, I have previously analyzed the article, I am optimistic about internet companies, the final model is likely to be the car manufacturers and Internet companies to cooperate, so , the layout is now very critical, so that the future not only occupy the phone, but also occupy the car.

Word, free, the internet company to subvert the traditional enterprise's super weapon, once again shook the market.