Perfection of Rebirth

Chapter 410 The Future Internet Pattern Appears
Just when Guanghui Film and Television's "The Girl We Chased Together" was released in full swing, another major event happened on the Tianchao Internet.

On August 2005, 8, the seventh day of the seventh month of the lunar calendar, the day when the Cowherd and the Weaver Girl met across the Milky Way in ancient Chinese legends, Yahoo, the world's largest portal, and Alibaba, the leading e-commerce leader in China, came together and announced a series of transactions Arrangements and form strategic alliances.The news came suddenly, and once announced, it shocked the industry immediately.

However, in Jiang Hui's view, as early as 2003, the seeds of cooperation between relevant parties were planted.

In 2003, Yahoo acquired 3721, the largest search company in China at that time, and handed over the management of Yahoo China’s business to the 3721 team. The localization strategy made Yahoo’s search business ahead of Google in China, especially when Jiang Hui held Hao123 During that time, Yahoo's search business developed rapidly.

However, the cooperation between the two parties was not pleasant. According to media reports, the original 3721 team believed that Yahoo China’s decision-making power and capital use were too restricted by Yahoo’s headquarters, and missed the opportunity to catch up with Du Niang and compete for the leader of China’s search market.

The portals of Yahoo all over Europe and the United States are the first in the local area. In island countries and Baodao, Yahoo has successfully blocked Google and drove away eBay.But in China, instant messaging is dominated by Penguin and MSN; advertising is dominated by Sina, Xiaonei, Sohu and Netease; online games are dominated by Shanda, Brilliant Games and Ninth City; A series of Guanghui Group companies are running across the Tianchao Internet...

Yahoo has been working hard in China for seven years, and only search barely occupies a place in the business of making money on the Internet, and it faces strong competitive pressure from Du Niang and Google.If you do not want to withdraw from China, the most potential market, what should Yahoo do?
And what about Alibaba? In 2003, Alibaba newly launched Taobao. After winning the B2B (business-to-business e-commerce) market, it entered the C2C (personal-to-personal e-commerce) market.

At the beginning of Taobao’s birth, it was almost killed in the cradle. The international e-commerce giant eBay “blocked” Taobao on large websites such as Sina, Sohu, and Netease by paying double advertising costs.As a last resort, Taobao adopted the combat method of "encircling the city from the countryside", setting up pop-up webpages on small and medium-sized websites, and at the same time using website platforms, light boxes and body advertisements to launch offline publicity.After a series of marketing innovations, Taobao won the survival. In the first half of 2005, Taobao accounted for 55% of the market share, although eBay expressed strong doubts about this.

Although Taobao has achieved success in terms of market share, this success is based on the premise that Taobao is free and eBay charges fees, which has kept Alibaba under financial pressure.In addition, this year Dangdang and Penguin have announced their entry into the online shopping field, and the environment Taobao will face will be even worse.

At this time, Softbank, the major shareholder of Alibaba, has successively increased funds many times.Although Taobao has achieved great investment success, venture capitalists headed by Softbank cannot enjoy the joy of listing and cashing out, because Boss Ma insists on waiting for Taobao to beat eBay, Alibaba and Taobao to monopolize the B2B and C2C markets before going public; and In order to continue the fierce competition with Yiqu, which is unpredictable, Taobao needs to further increase investment.

These venture capitalists are not like Jiang Hui, a reborn person who knows the development of future generations.Should we continue to invest in supporting Boss Ma's dream of an e-commerce empire, or should we enjoy the staged successful cash-out of the investment?Different types and styles of venture capitalists have different judgments on this.

Under the background of this series, it is not so strange that Yahu Tianchao and Alibaba are walking together.Through this merger, Alibaba has obtained sufficient development funds and laid the foundation for future Internet giants.

The vast majority of people may not realize that the Internet pattern of the Celestial Dynasty has been basically formed since then.

If there is no Jiang Hui, then there will be Du Niang, Penguin and Alibaba, plus some other companies.Although Shengda Network, NetEase, etc. are also giants now, but in the future, except for BAT, others will belong to "other companies".

In this life, after the establishment of the Guanghui Group, the structure of the Tianchao Internet can be said to have undergone relatively large changes.Now the top of the Chinese Internet pyramid has become Guanghui Group, followed by Du Niang, Penguin, Alibaba, and then "other companies".

Du Niang went public this year, with a market value of 400 billion; Penguin went public last year, and now has a market value of more than 300 billion; and Alibaba, although not listed, has a valuation of more than 300 billion after the merger.As for Guanghui Group, no one can calculate its valuation now, and it may take the combination of the first three companies to compete.

Therefore, in fact, it can be said that the future pattern of the Chinese Internet has already been formed. "One Super Three" will continue to expand their share in the Chinese Internet market.Presumably, ten years later, 80.00% of the resources in China's Internet market will be in the hands of these four groups, and other companies will share the remaining [-]%, which coincides with the [-]% rule.

The 80/20 law is also known as the 19/20 law, Pareto's law, Barrett's law, the law of least effort, the principle of imbalance, etc. It is widely used in sociology and business management.It was discovered by Italian economist Paledo at the end of the [-]th century and the beginning of the [-]th century.

He believes that in any group of things, the most important only accounts for a small part of it, about 20%, and the remaining 80%, although it is the majority, is secondary, so it is also called the [-]th law.

This law is very consistent with various situations in reality.For example: 20% of the people hold 80% of the wealth in their hands.

After this market structure is established, it will be difficult to break this pattern unless there is the next technological revolution or "one superpower and three powerhouses" kill themselves.

For example, Guanghui Group, in addition to the current companies, Jiang Hui is already arranging a layout for the mobile Internet market, that is, the future smartphone market.Not only the existing companies are required to develop APPs for smartphones, but also new applications are developed according to the characteristics of smartphones.

For example, Brilliance Games is now cooperating with Brilliance Mobile to develop games for smartphones, such as cutting watermelons.

For another example, Guanghui Data Center is developing the application of "Bright Cloud" for smartphones and moving lights.

At the same time, Brilliant Investment, as an emerging venture capital company, is also continuously accepting capital injections from the group to invest in various Internet companies.

Not to mention WeChat, Yu'e Bao, and products related to the sharing economy that Jiang Hui has not yet produced.

All these mean that the future Chinese Internet market will be more and more concentrated in the hands of a few giants, forming a situation where the strong take all.This may be one step ahead, step by step.

(End of this chapter)