Internet Business Thinking

Chapter 5 Giants lead the business model (2)
Compared with other online loan companies, in terms of risk control, Ping An Group, as a comprehensive financial group, has stronger risk assessment and monitoring capabilities.Lufax and the guarantee company have introduced a credit model from Ping An Bank, and any individual or enterprise that borrows from Lufax needs to pass the audit of this model.It is said that the approval rate as of August 2013 was only about 8%.

Compared with most P2P online lending companies that have not yet connected to the credit reporting system of the People's Bank of China, Ping An Group has integrated into the credit reporting system of the People's Bank of China, which helps Lufax and its guarantee companies to grasp the credit information of borrowers on the platform , control risks.In addition, the unit online loan alliance with Lufax as the secretary-general, and the microfinance alliance with Du Xiaoshan as the chairman are also preparing to carry out the credit information networking of P2P online loan companies and the docking with the credit information system of the People's Bank of China.

Online Business Tips
Ping An Internet-connected event

1. "Sanma" sells insurance
In 2013, Zhongan Online Property & Casualty Insurance Company jointly established by Jack Ma of Alibaba, Mingzhe Ma of Ping An Insurance, and Ma Huateng of Tencent Holdings was approved.The launch of Zhongan Online is mainly aimed at liability insurance, guarantee insurance, and online virtual property insurance. It sells and settles claims entirely through the Internet.This move is considered to be an important milestone in the Internetization process of the financial industry.Ping An Group has clearly realized the powerful power of the Internet and big data.Sanma's sale of insurance is a move by Ping An Group to turn passive into active and strive for win-win cooperation in finance and the Internet.

2. Cooperate with Baidu JBP
Ping An signed a JBP strategic cooperation agreement with Baidu. In terms of consumer insight, we will use Baidu's big data advantages to jointly conduct in-depth user behavior research, build a netizen ecosystem in the financial sector, and enhance Ping An's sales capabilities.For example, through the analysis and clustering of high-related groups who have paid attention to "auto insurance" and "new car purchases", Ping An Insurance placed targeted advertisements on the four channels of "Baidu Zhizhi", and the probability of winning orders has increased significantly.

3. Pan-internet mobile application of software: MIT Mobile Exhibition
MIT (Mobile Integrated Terminal) is a mobile Internet business model created by Ping An Insurance.Business agents carry laptops, 3G wireless network cards, etc., and connect online with the IT system of Ping An Group through the Internet to handle business for customers in real time, and complete everything from insurance application, contract review, policy payment to underwriting on the spot. process, and handle more than ten services for customers, such as insurance payment collection and loan application, anytime and anywhere. The current utilization rate of MIT has exceeded 90%, which has greatly improved business efficiency.

(Section [-]) Enjoy being "beaten": you can neither be scolded to death by your opponent nor let users kill you

The growth path of Qihoo 360 is not smooth, it is almost going all the way, fighting with all kinds of princes, and the right and wrong discussions caused by Qihoo 360 almost exceed all Internet companies, which makes it often pushed to the forefront of public opinion.While being chased and blocked by princes from all walks of life, he cultivated his internal skills and successfully realized subversive innovation, which made the final rise of Qihoo 360 inevitable.

This is a microcosm of the game between Baidu and Qihoo 360.

In early January 2014, I entered "1" in Baidu to search, and the first message in the search result read: "Baidu reminds you: Qihoo 360 flagrantly violated Order No. 360 of the Ministry of Industry and Information Technology and forcibly blocked Internet users from downloading and installing Baidu Antivirus and Baidu Guard. In order to protect the legal right of netizens to independently choose to install security software, netizens are kindly requested to uninstall Qihoo 20 before installing Baidu Antivirus and Baidu Guard to ensure normal installation!"

For this reason, during an exclusive interview with Qihoo 360, a reporter from "Manager" once asked Qi Xiangdong, the president of Qihoo 360, what he thought of Baidu's practice.Qi Xiangdong said frankly: "At the beginning, it was difficult for us to accept. For example, he pulled up a banner on the roof, and the content of the banner was still scolding you, and you could still see it when you passed by every day, so our anger, It exploded from the inside. Our whole company was angry about this kind of thing, but the other party insisted on doing it. After that, I didn't get angry because I got used to it—I think our users got used to it. If Hanging a banner for ten or eight days will have a negative impact on our users, but if it hangs up for several months, I think the negative impact is not on me, but on the person who hung the banner. Users must know: Baidu Who is it, an Internet giant! Baidu has been hanging such a thing for a long time, saying that 360 is illegal, and everyone will naturally have their own judgments and ideas in their hearts."

The reporter asked: Has Qihoo 360 ever thought of "treating others with their own way" and hanging the same "banner" on the 360 ​​website?Qi Xiangdong replied with a smile: "360 will not do this, and I have never even thought about it."

Qi Xiangdong believes that enterprises are not killed by opponents, but by users.In other words, enterprises are not defeated by their opponents, but by themselves.Since the company is not brought down by the opponent, can the opponent put up a banner to bring down 360?Or, 360 can knock down the opponent by hanging a banner?Speaking of these, Qi Xiangdong smiled lightly.

It seems that Qi Xiangdong and Qihoo 360 are already "detached".In fact, when Rising and Qihoo 360 "struggled" earlier, Rising also had a similar approach.

According to Qi Xiangdong, when Qihoo 2008 launched free antivirus software in 360, Rising used two-thirds of the homepage of its antivirus website to hang a big slogan: "2 steals user privacy." Below the big slogan is a small one. Title: "What did 3 steal from your computer?" "How did 360 steal something from your computer?" When users want to kill viruses, they only need to click, and these contents will appear on Rising's page.

"At the beginning, we were panicked when we saw this thing, and thought: What should we do? Because Rising was the leader in the industry at that time, and 4000 million people opened the interface of Rising every day." Obviously, Qi Xiangdong and Qihoo 360 at that time did not "Calm down."

At that time, Qihoo 360 used almost all of its connections, but there was still no way to change the situation. In the end, it could only let it go and resign itself to fate.Qi Xiangdong said: "Rising has been hanging the slogan for several months. But doing so also had a negative impact on Rising. Later, Rising removed the slogan. After the removal, Rising's market share was still reduced by half."

As the industry leader, Baidu and Rising, the former leader, put up such "banners" to show their attitudes.Qi Xiangdong said: "Actually, users have their own ideas in their hearts, and they are slowly developing: Is there a problem with 360 or Baidu? Is 360 overbearing or Rising overbearing?"

Obviously, the growth environment that Qihoo 360 faces is full of murderous opportunities.As Qi Xiangdong said: "After 2006, no new big Internet companies emerged in China. In 2005, Qihoo 360 was born. This is a very shocking ending. Why did this happen? Because the Chinese Internet Monopolies emerged, and large companies took advantage of their market dominance to attack small and medium-sized innovative companies, so that the market no longer had innovation.”

2013年12月20日，腾讯公布的内部统计数据显示，各平台在国内应用分发领域的市场份额是：百度系占38%、360系占28%、豌豆荚占15%、应用宝占12%。另有数据显示，截至2013年9月，360的PC端用户达4.65亿，渗透率达94%；360手机卫士用户达4.08亿，渗透率达70%；360浏览器用户达3.42亿，渗透率达69%，在国产浏览器中处于领先地位；360安全网址导航的独立访问用户1.26亿人，日均点击6.81亿次。按用户数量计算，奇虎360已成为中国最大的互联网安全公司。

From these dazzling data, it can be seen that Qihoo 2005, founded in 360, is no longer what it used to be.However, as a provider of Internet and mobile phone security products and services, Qihoo 360’s growth path is not smooth. The company has led to it being frequently pushed to the forefront of public opinion.What is commendable is that Zhou Hongyi, the chairman of Qihoo 360, said: "360 dares to challenge, even if it is beaten all over the ground by the giants, it is still standing mentally, even if it is beaten on the ground by the giants, 360 can stand again Get up and spit on them and say 'no'!"

Then, why Qihoo 360, which has been "hunted" by the princes of the industry, has been able to survive and live proudly in the midst of being chased and intercepted, has become the fourth largest after Baidu, Ali, and Tencent in terms of market value and number of users. What about big Internet companies?
Period of Strategic Opportunity Ignored by Opponents

In mid-January 2014, Zhou Hongyi said at the Qihoo 1 annual meeting: Qihoo 360 was built by a group of people who did not know how to protect their own safety. "In the PC era, we were able to make some achievements because of good luck. When we were doing security, did anyone compete with us? No! In fact, traditional Internet companies did not understand why Qihoo 360 was doing network security. , so Qihoo 360 was given a few years to grow. Our competitors are traditional antivirus vendors who don’t understand the Internet at all, and we use Internet thinking to fight traditional antivirus vendors, which is completely a dimensionality reduction attack.”

Zhou Hongyi also took Xiaomi as an example. "Xiaomi has its parts that it does well, but the fact is that it has no competitors for a long time because everyone can't understand what it's doing. It's called luck."

Perhaps, no one figured it out at the beginning, but looking back now, Zhou Hongyi has already seen it clearly: after Qihoo 360 entered the anti-virus field, the reason why it was not attracted by "big names in the industry" such as Rising and Kingsoft There is really an element of "luck" in the extermination.This "luck" is the period of strategic opportunity for Qihoo 360 to gain a foothold.

In July 2006, Qihoo 7 officially launched 360 Security Guard and other products. In July 360, Qihoo 2008 cooperated with internationally renowned antivirus manufacturers to launch a free antivirus software—7 Antivirus.By January 360, the number of users of 360 Antivirus exceeded 2010 million; in June of that year, the number of users exceeded 1 million, and its market share reached more than half, far ahead of other antivirus products.In fact, Rising and Kingsoft, as pioneers, did not stop blocking Qihoo 360's market behavior and legal battles during this period, and a series of lawsuits have been going on, almost without interruption.

However, why did Rising and Kingsoft fail to kill Qihoo 360 in its infancy?As Zhou Hongyi's former general, Fu Sheng, who was recruited by Lei Jun and became the CEO of Jinshan Network, explained the mystery: "After you have developed a browser and navigation, you have become a part of the entire Internet. Only in this way can you truly be embedded in the ever-repeating ecological environment of this industry, and the meaning of competition and cooperation will begin to increase.” For this reason, after Fu Sheng became the CEO of Kingsoft Network, he first cut off the “not making money” and “not so Internet” The old project (Kingsoft Web Shield) has added new projects that are "more Internet" (Kingsoft Navigation, Cheetah Browser), reshaping the Internet gene for Kingsoft products.

That is to say, at the beginning, Kingsoft and Rising, which are traditional antivirus manufacturers, competed with Qihoo 360, which used Internet thinking to play cards. Obviously, the ideas and routines of sparring were misplaced.This has reserved a rare period of strategic opportunities for the growth of the budding Qihoo 360.

Of course, this is very different from the subsequent struggle between Qihoo 360 and Baidu and Tencent, because when Qihoo 360 was working in search and other fields, the powerful Baidu and Tencent did not lack Internet thinking. Seriously, or "ignore" Qihoo 360.But the same is true, the final results have left a period of strategic opportunities for Qihoo 360, enabling it to take the opportunity to expand itself.

According to Yin Xiaoshan, brand director of Qihoo 360, there is an element of luck in it.Where is Qihoo 360's luck?Yin Xiaoshan said: "At that time, the antivirus industry was chaotic, and Tencent didn't want to 'blend' into the field of security products, but was busy making money in other fields. Therefore, when Rising, Kingsoft, and Jiangmin were yelling at each other At that time, the big brother Tencent was still dozing off, which gave Qihoo 360 a chance to breathe. At the same time, Tencent did not realize the importance of browsers at that time, so this gave Qihoo 360 a chance to be a browser When 360 Antivirus and 360 Security Guard had more than 360 million users, Tencent began to wake up and realized that Qihoo 360 might threaten it. It’s too late for Qihoo [-].”

However, in the past few years, while Qihoo 360 challenged the monopoly of the giants, it also gave them great stimulation and vigilance.Zhou Hongyi said: "Can we continue this kind of luck again? The competition in the security market is extremely fierce at present. We are far from being as far ahead in the mobile phone market as we were in the PC market. One very important reason is that no one Understand 360's strategy on PC, and now, opponents will no longer give you sufficient development time."

Being lucky enough to survive the period of strategic development opportunities is almost ignored by the outside world. In fact, this is also an indispensable factor for the rise of Qihoo 360.

If competitors left Qihoo 360 with a certain period of strategic opportunity, then the cultivation of internal skills and the successful realization of subversive innovation will make Qihoo 360's ultimate rise inevitable.

Qihoo 360 redefines Internet security and rewrites the security market structure through three subversive innovations in business model, user experience and security technology, and thus stands out in the industry.

Subvert the original business model with "safe and free"

The success of anti-virus software from charging to free is a great victory for the free spirit advocated by Qihoo 360 and a subversion of the original charging business model.Zhou Hongyi said: "360 has started an unprecedented revolution in China's Internet with 'free security'." Security is a basic service in the Internet field. Qihoo 360 is the first to advocate completely free, just like Tencent's free WeChat subverts the SMS that telecom operators charge. Like MMS, it is revolutionary.

Users originally had to pay for security software from security vendors, but due to the high price of antivirus software, only a small number of netizens are willing and able to buy it. Viruses, Trojan horses, phishing scams, etc. are rampant, posing a serious threat to their online security.Based on the needs of users, Qihoo 360 launched the concept of free security and practiced it personally. The result was very popular among users.

Qihoo 360 has neither paid membership nor paid security services, so how does it make money?Mainly rely on its open platform strategy, that is, through 360 navigation, 360 search and games and other platform-level products to share traffic with a large number of third-party websites and software, to maintain the survival of the enterprise.Currently, revenue from open platforms, namely online advertising and Internet value-added services such as web games, accounts for 360% of Qihoo 99's total revenue.This is the secret of free internet.Zhou Hongyi believes that there is no value-added service for security, and there are no three states of insecurity, security, and more security, only security and insecurity.

In fact, the business model of Qihoo 360 has also been explored continuously.According to Qi Xiangdong, at first, when 360 Security Guard cooperated with other antivirus software, it was free for half a year, charged after half a year, and then became permanently free.There have been three paid vs free wars on the Chinese Internet in e-mail (NetEase and 263 mailboxes), e-commerce (Taobao and eBay), and Internet security (free 360 ​​and traditional fee-based antivirus vendors), and all of them were free in the end. "It is becoming more and more clear that free is the trend of Internet development. The current standard model is that any Internet company must first find a free service model, and then provide users with value-added services on the basis of free services to make money."

Later, free antivirus became the mainstream of the market.Traditional antivirus vendors Rising, Kingsoft, Jiangmin, etc. have followed suit.Even so, the free model has caused many disputes in the security field, and Qihoo 360 has inevitably become the enemy of traditional paid antivirus software manufacturers such as Rising and Kingsoft, and is regarded as a spoiler by the industry.

The concept of pan security rewrites product boundaries

Qihoo 360 has enlarged the boundaries of antivirus software products, which is pan-security innovation.Qi Xiangdong said: "The responsibility of anti-virus software is to kill the viruses and Trojan horses detected in the computer, but if we only stick to this function and scope, then the value of users using our anti-virus software is limited, because you only solve Part of the problem with the terminal computer is to delete the garbage existing in the computer, but it does not guarantee the user's online security, which is a more complicated process."

(End of this chapter)