7 Ways Of Decline Of Internet Co

Shi Yuzhu once summed up the "thirteen kinds of death methods" of the traditional private enterprises, such as those hidden in the dark, who used the improper methods such as false accusation, lawsuits and so on to "die" or were "killed" by the competent authorities, or were confused by the legal provisions.

As a matter of fact, the cruelty of Shi Yuzhu's private enterprise environment is not a new topic for Internet companies. Many entrepreneurial teams often blame the key factors of the decline of the company.

"In fact, the state is more strict with other industries.

On the contrary, in recent years, the Pathfinder of the new Internet model has been exposed to the outside world: facing the ubiquitous Tencent, Baidu and Taobao, there is great pressure.

As V C, Deng Feng, managing director of Aurora ventures, pointed out that Internet Co does have an important rule of success, that is, when the first person has a large, low-cost and sticky flow, the speed of adding new applications can be very fast. This is different from the traditional industries such as clean energy, such as lithium batteries and fuel cells.

"When Tencent first launched, everyone laziness said that their own innovation was strangled?" Internet veteran Xie Wen questioned, "will real innovation be like this? From Y a h o o! To G o o g l e, and then to g, this comprehensive and deep innovation is blocked."

In fact, Tencent, Baidu and Taobao in the initial stage of the model are not optimistic about the outside world. They even have three overseas imitation models of ICQ, Google and eBay. After several years of experience, after experiencing the twists and turns of the shortage of funds and the risk of being sold, they finally found the Chinese type of innovation gene and achieved great success.

So, look back at all kinds of Internet history.

Hu Yanping, general manager of D C C I Internet data center, said to the "elite" reporter: there is no wrong Internet business, only the wrong Internet Co; there is no wrong Internet mode, only the wrong Internet operation.

After visiting over a number of senior people, the elite reporter tried to find out the reasons why the Internet Co had been on the decline from the perspective of entrepreneurs, entrepreneurs, angel investors, VC and third party research institutions.

Ignore the masses

Specimen: blog, China, etc., trying to support a large w e b2.0 business model with a single blog.

When Fang Xingdong, an anti Microsoft fighter, discovered that an Internet "new east east" was free to make speeches, instead of being blocked, the phrase "blog" was brought to China in a single stroke, igniting the enthusiasm of many Chinese intellectuals to write on the Internet.

However, it is difficult for an ordinary person to insist on writing high quality articles. Therefore, it is obviously impractical to build up popular commercial value and advertising revenue in the small and honest mode.

This is quite different from the "show self" brought by Myspace and Facebook to ordinary users, and micro-blog's "complaining" effect.

Just imagine, if the original entrepreneur can make the blog simpler, what kind of effect will it be?

Decline mode two

Venture capital mess

Specimen: 8848 website

8848, as a benchmark in the history of e-commerce in China, it has been written into the great defeat of China's venture capital.

At the beginning of 2000, the 8848 single month sales in the glorious period have already broken through tens of millions of customs and sold tens of thousands of commodities.

After obtaining a high level of financing and just one step from the listing, it unfortunately encountered the Internet bubble. Since then, investors have been catering to the taste of Wall Street and focused on packaging the B2B business in the US, instead of weakening the core business of B2C, and finally embarrassed to split the 8848 into two.

Compared with ten years' Alibaba and Dangdang, 8848 lost the Mai City.

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Decline mode three

Swarm

Specimen: batch F a c e b o o k, bulk Twitter and bulk group buying website.

Not all the "copies" can be successful. Just like Chinese Facebook, only when the school network is catching up with the good times, Kaixin has another way to get high growth. Others such as the sea, the 360 circle, the ant net and so on have all fallen down in batches. Also, China's Twitter, such as rice no, crooked, and so on, has been hit hard by the different national conditions of China and the United States. Once again, such as the "1000 regiment" war, the market is coming to market with an overly clear business model, and eventually shuffle under the siege of Tencent giants.

In the first place, the first batch of "copy people" had little success, and thousands of oaks could not break through, and let alone the second wave and third wave "copy".

Decline mode four

Net violation

Specimens: Xplus, ZCOM and other electronic magazine websites.

In early 2004, when a number of websites such as Z C O M presented free copies of all kinds of electronic magazines, traditional magazines, readers and venture capital were all like a shot of doping.

Unfortunately, users do not maintain interest in such a free magazine, which seems to be sitting in front of the browser, looking more cool, but slow to download and slow to read.

In the end, the electronic magazine industry was destroyed by continuous losses, and hundreds of millions of dollars were invested in venture capital.

Old wine in new bottles runs counter to the fragmentation, personalization and interaction of information emphasized by the Internet.

For a business mode that can not really create value for the vast majority of Internet users, it is either small or eliminated.

Decline mode five

Over exploitation

Specimens: SP website, E-Mail marketing website and some online games companies.

The monthly payment of 5 to 10 yuan per user may create miracles on the infinite user base.

However, good scriptures are distorted and distorted.

In those days, most SP took the road of quick success and instant benefit, instead of providing quality services, they designed various traps, and even colluded operators directly, forcing them to deduct fees every month, so that many mobile phone users set high "packages" without careful attention, and there were many short spam messages.

Finally, under the "two confirmation" order, there were few survivors in the entire SP industry.

In fact, ignoring user value and over exploiting users also made the "beautiful" E-mail marketing become the source of spam, and also made some online games enterprises encounter development bottlenecks.

Decline mode six

Rely on hard ties

Specimen: Green Dam Internet software, etc.

Internet history has proved that there are many cases that do not have government resources but rely on the huge scale of users' quality services, but few enterprises can rely on government support and support.

The end of Green Dam Internet software is a wake-up call for companies that ignore users' interests and expect to be facilitated by some big power companies, operators and trade associations, and even try to intervene in every private computer Internet through government directives.

Decline mode seven

Entanglement of "two line operations"

Specimen: 58 city community, Ganji network and other urban life community websites.

There is a kind of Internet business model, which has both models and products, but it is difficult to make a big deal.

Because it is in the middle of the industrial chain, it has to satisfy the upstream manufacturers, but also serve the downstream users well. It has a very high demand for enterprise resources and enterprise operation. There is always a problem of chicken or egg.

Looking back at the development of the Internet, the success rate of single line operations is high.

For example, the early Tencent and Baidu focused their efforts on meeting the convenience of the netizens, that is, providing high-quality instant messaging and search, and later "fixing" businesses.

At present, including 58 city network, Ganji network and other urban life websites are entangled in "two line operations".

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Zhou Hongyi's reflection is most tragic.

In the face of questions about which Internet mode is easy to go bad, Zhou Hongyi, who is pleased with his enemies, calmly rethinks.

"To sum up, no subversion, no innovation, no freedom, no user value first, can not be a big deal.

Moreover, a Internet Co usually has several mistakes and complications.

Zhou Hongyi said that when others were stealing vegetables from happy net, he was studying the reasons for the popularity of Kaixin.

In fact, the creed he has learned is not only a kind of precipitation that has been studying the cases of Internet Co between China and the United States for many years, but also a reflection of entrepreneurs.

"Add one, I made a mistake."

The reason for making mistakes is also very special, because it is too experienced, too ambitious, too high and too rich.

He said, "arrogant, arrogant, self righteous industrial critics and even thinkers, talking about the grand plans of 3G, the combination of search and community, but forget the golden rule of starting from the most grass-roots users. The idea is more or less focused, resulting in the Qihoo's up to the portal, down to search, e-commerce and community search, making 11 kinds of products at one breath, a big hodgepodge; rich money on" burning bags ", money being swollen and constantly recruiting, almost making the company's cultural management out of control; burning the money to advertise so much that the products hidden in the bottom are" blinded "by the flow of market publicity." these are very harmful.

Experienced a series of blind "opinionated" Zhou Hongyi, eventually from Qihoo to 360.

Today's 360 has gradually grown and become a successful client software, and it is putting the "Internet spirit" of "subversion, innovation, free, user value first" into practice.

As an angel investor, Zhou Hongyi has been investing in entrepreneurial teams in recent years, passing on this idea. At the same time, he has helped a group of potential troops who know how to adjust their strategies flexibly.

"I am feeling more and more excited now. When I was in the early years, I was told that I would rather invest in a second class idea plus a first-class team than a first-class idea plus second rate team.

At the beginning, I don't understand, because many people always think that idea is very important, but idea is not yet a mode. From idea to mode, there is still a long way to go. "

In fact, the most successful Internet Co and the earliest commercial plans for financing are not the same.

The so-called mode is dead, and man is alive.

A first-class idea, team execution is not good, there is a possibility, is to blow up the good idea; the most tragic thing is to inspire the giant, instead of making it, become a martyr.