Baidu CTO and COO Ye Peng Li at the same time a man is gone. Together one after another before the departure of a number of CTO and co-founder and COO, Robin Li's senior management team maintains the industry's fastest "metabolism" frequency. Some industry comment, Robin (Robin Li) students need to reflect the introduction of mechanisms for executives, but the water does not put out a fire far away.
The so-called fire, is the legendary period of time to Baidu conducted high-level debate: Baidu is to continue to focus on search, or the forces as soon as possible to make money grow. If the former, we must continue to look at "Global Chinese information integration," the goals to Google as the reference for example, the beginning of last year, Lee and a man airborne re-do the main force pushing the Aladdin program input. If the latter, we should scrap Robin I "do not play, do not do text messaging, do not do pop-up ads, in order to search out the" thesis that the early years of what King would do the most money, whether it is games, SMS, or pop-up ads.
Robin heard the debate was the final word: make money the most important. Baidu was a gang of high-level departure, they feel no sense to make money, like Google so proud of it worthy of their youth to explore. Leaving more than CXO this level, but also follow a number of high-level, the corresponding personnel changes come one after another, such as head of innovation and development VP to replaced by the SVP on the Mr. Xuyang Ren Shen Haoyu.
Then again, a number of ongoing projects have been also been categorically abandoned, such as network with 178 games to reach the cooperation: the construction of Baidu 178 games channel, Baidu to promote and sell advertising, the two sides into. This routine is Baidu as an information integrator that could cover the traditional orientation, and also explored the road before Baidu. But said that new thinking is: Baidu does not make a little money for such pull ads, and to develop and operate their own game, direct big money. Look, Robin really Baidu led "to" the. This pattern on Baidu history and the Internet are a major event.
Why change?
2009 Q3, Baidu income 190 million U.S. dollars, operating profit of nearly 8 million. Internet companies in China generally ranks third, behind Tencent and Shanda. Meanwhile, Baidu also maintain a 40% revenue increase, the hands of a 600 million dollars spare cash. Look on such a luxury family property, but Robin did not meet, or to "transition" to earn more money.
The pressure, of course Tencent. Similarly, the 2009 Q3, Tencent income 500 million U.S. dollars, operating profit of 250 million. Baidu respectively 2.6 times and 3 times. Tencent's revenues and profits year on year growth rates of 66% and 107%, much higher than 40% of Baidu. Cash reserves of 16 billion U.S. dollars, is 2.7 times Baidu. In accordance with this trend continues, the distance between Tencent and Baidu will soon be 5 times or 10 times. At that time, we do not at a magnitude of.
Tencent so to make money, because Tencent is "What to make money on what to do", while Baidu PPC alone has been a core business. Currently 500 million per quarter revenue Tencent, there is advertising, large-scale online games, casual games, virtual goods, wireless 4, in which the largest share of the most profitable of the game, while the game is all business lines in the Internet market, the largest and most profit thick, is still uncertain country from the clouds rushing in a wave. Naturally, Baidu to make money, is the first sprint of the game.
If one said that to make money, no need to fear Tencent Baidu. China Mobile and property developers are also a lot of money, Baidu certainly not afraid of them. The key is not the same: Tencent ways of making money sooner or later to pull Baidu's tell your.
Tencent QQ has a huge user base adhesive, the money strategy is: What business models when ripe, put this model into my user base, and then quickly get income. Such as was previously done imitate Korean trading virtual items, along with fishing for SP to move the money, then follow the portal Sina have to do pull ads, and then was followed by a grand large-scale online games they do. Now we all see clearly, especially B2C e-commerce to be another blowout, and then QQ also begun to do a mall project, QQ users can TenPay set ticket and hotel again. Mantis, cicada, oriole behind.
The question is: When the oriole does not assume Tencent explore a new business model and the cost of the education market, it does not bear the costs of promotion (QQ users to directly promote its new products, market rate is almost 0), and various business sharing the cost of management fees, etc., then it does every business have a larger profit margin, together have much higher profit margins. The result: there are 500 million U.S. dollars Tencent quarter revenue was also ranked second oldest grand about 200 million, as profits, more than one order of magnitude of. Tencent profit so big, really want to thank those who have labored hard for the industry pioneer in innovative front costs.
Next, when for every business in the direct rivals, Tencent you can at a given time with other businesses to subsidize the profits of a business, "consumption" off the main opponents of this business profits, and then compressing it into force gradually weaken his opponents to become the oldest segments. Such as portal advertising, profit margins have always been very thin, Tencent can use their profits to subsidize the game portal business, and gradually catch up, Sohu is now very close to her second child, and is expected to replace the boss Sina in 3 years. Such as online payment tool, grab the market has been in a burn phase, Tencent TenPay off top-Q on 9 currency through a "forced blood transfusion" approach to growing their own, eating out Alipay market share. With say, Tencent is the online games industry boss has said to the NetEase QQ mailbox almost winning, market share first.
So we understand the seemingly strange behavior Ma: Taobao earnings if higher than a certain limit, executives on the guilty, rather than active. Firstly, if you are profitable, and that business models mature, they will be more fierce Tencent flew into to. Second, if you eyes on profits rather than market share, then just fit the Tencent's routine: I use the profits of other businesses to "consume" you, I do not want profits to share.
The value of cross-platform
So we also see China's Internet companies one after another cross-border operation, pluralism, what money do, melee, layout. Tracing the source, is Tencent's revenue model indirectly determined, well-developed large extent, Mr. Ma is the development of China's Internet rules of competition and people. The problem is, Tencent's revenue model also decided in its business model, that is, a piece of unbreakable QQ users can continue to import business model. Revenue model can imitate, but only this one business model.
But many industry found: Tencent's business model even if not, they must imitate their revenue models as soon as possible, only the volume is large enough, have staying power, like Tencent is also only "on consumption" of capital, to buy time to find a breakthrough or waiting for a miracle. I am afraid to be a lot of people regret the Internet: mixed the rivers and lakes, the most important forces, rather than innovation. Possible, this is Baidu executives who leave the pain, the pain is Google fans.
Now learn more than Tencent, Baidu, which has become the mainstream of basic. Example, boasts the second largest client installed capacity (after QQ) of the Thunder, on this road bolted and ran, first to sell advertising, is a joint operation after the game, to open stores, their R & D game, continually proven for the mature business model to their customer base in grafting. But after all the point: this study, only the shape and not bore a striking resemblance. Large user base adhesive, unbreakable, is God.
Now, Baidu, and Thunder are the lack of "God." Day that users no longer need to download movies to the local, and direct online reading, the value of also backing off the Thunder. With the first day that search engine technology revolution, or the proportion of social search general information gradually over the search, thus shrinking the value of Baidu. They do not have a network, in this line, the user simply does not run out.
Worth is, Ali and the grand two groups appeared to be a bit of "God" has. This God is not a network among people, but the network between the different business lines.
Alibaba, Taobao, Alipay, Ali, software, Ali Mama, word of mouth, that is nested within each network up and whom Ma has also painstakingly concocted C2B2B2S concept. You run away with me a business is easy, but with my 5 hard to run away business and you feel a business with me, "pass", but with my five interrelated businesses will feel "cool." Now Ali to weave a larger network, such as shopping and television stations to do with platforms and shopping programs, and the media do with the magazine. More and more business lines to share information flow, several multiplexing, not only cost-sharing, to improve the overall ability to resist risks.
Shanda, Hurray, flourishing film industry, from Chinese, is also nested within each other up in the net. Prosperity can be a starting point for creative films and Chinese music with friends, Golden Age of film can be cool channels 6 and China on the promotion of the Friends, the Friends of China to the Golden Age of music can also be a grand game film and composer, the director of Prosperity Shanda's game plan for. When the block of interactive resources together and achieve multiple reuse, cost reduction, revenue and profit margins on the great, and copying will be increasingly difficult.
Expect to see more such attempts, expect more strategic level rather than product-level innovation difficult to break the established pattern of development of rules and industry. Baidu and Robin take a good sincere wishes.
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