The Tencent has no dreams, Ali has no allies?


In the early morning of May 5th, pan messy reduced 4 words to 1.3 thousand words. In the WeChat public, the name of the Tencent did not have a dream. After 2 hours, the number of WeChat public number reading was 100 thousand.

The article of Pan chaos caused the hot discussion of the industry because of the definite problems in the development of the Tencent: the aging of the organization, the decline of product research and development, the emphasis of investment on the main business and the excessive attention to competitors, which led to the lack of vision for its own strategy.

These do exist, and exist in most of the old companies that have been established for more than 10 years, but there is a different view about Mao’s conclusion.

That is for the Tencent, the hollowing of social relations + investment is the intention of Tencent, and it is easy to get out of the three – stage structure of social, product, and investment. At the same time, we can snoop on what Ali does not want to have ally, but it is the inevitable choice for Ali to improve its infrastructure.

For BAT, the choice of strategy is far more dimensional and deeper than most people can think of.

The Tencent has no dreams, Ali has no allies?

Social relations are the gate and foundation of Tencent’s whole company. They haven’t changed in 19 years.

At the beginning of the 3Q war in early 2011, at the beginning of a discussion on “what is the opening capacity of the Tencent”, the Tencent set up two core competencies for Tencent’s 16 executives: one called capital, one called flow. This constitutes the basic 7 years of Tencent’s opening up to the present. That is to ask for money to flow to QQ or WeChat’s entry level traffic.

Under these two open core capabilities, there is only one basis, that is, the social relationship of the Tencent. Before 2011, Tencent was the social core of the social QQ at the PC side. After 2011, WeChat +QQ was the social core of the mobile terminal. No matter how the pattern changed, there were only two words at the core of Tencent: social.

Tencent has attracted a large number of users with social connections between QQ and WeChat. At present, WeChat’s daily activity has broken 1 billion, and QQ’s daily life still keeps 500 million. It almost covers all of China’s net users, and is the most valuable social user of acquaintances, leaving only a stranger to the industry with the rest of the stranger with a dubious, artillery original crime, but this is just a drop in the sea. Questmobile2017 data in June showed that the daily activity of the unfamiliar street was 25 million, only one fraction of the Tencent.

With the traffic of social users, Tencent has become a number of traffic matrices: portal, video, circle of friends, public number, game, entertainment and other business, and this kind of business is back feeding traffic.

Finally, it brings the foundation of Tencent’s opening up: capital (business revenue) and traffic (traffic volume).

So, we can see that Tencent is very concerned about social networking. After the three departments of mobile social applications to develop mobile social applications after rice chatting and WhatsApp online, the Tencent has been restructured and the Tencent reconstructs the strategic supplement after the rise of the short video.

Similarly, we can see that the essence of Tencent has always been a social company, and social relations are the basis of Tencent’s 3 trillion and 640 billion Hong Kong dollar market value. Although we can see that the Tencent’s first big business in 2017 is still a game that accounts for 41%, the game is essentially a basic social business in terms of traffic and social relationships to users.

As long as there is a social tool to attract users, Tencent can bring traffic to any industry with high gross profit. Even if the profit rate of the game falls one day, the Tencent can complete the seamless handoff of the new high Maori Business. This is the foundation of the Tencent flow. In a sense, social social is an unbeaten magic weapon.

The transfer of acquaintance’s social relationship chain is also the foundation of Tencent’s unfailing defeat. The transfer of social relations is not carried out by a single user. Only the transfer of the entire chain of users can destroy and destroy the old platform. Unless the revolutionary infrastructure upgrade of the social platform is likely to have such an impact, such as the transition from social to mobile social changes at the PC side, such as the transition from mobile social to virtual social, the Tencent will always exist because of social traffic.

That’s why Google and Alibaba’s social heart is not dying, but it’s also a fundamental reason why they can’t socialize.

Social relations + the pattern of hollowing up investment and acquisition is the best choice for Tencent.

For the current situation of the development of China’s Internet, Alibaba and Tencent have become the infrastructure of the Internet. No matter what business you do, it is impossible not to invade or borrow the infrastructure built by AT. With the rapid iteration of the Internet vents and the fragmentation of user interest, no enterprise can grasp the context of the development of the Internet, and no business can do all the potential business.

For enterprises, choice has become the key. Especially for Alibaba and Tencent giants, how to consolidate the location of infrastructure and strengthen the moat has become the key.

For Tencent, social interaction is the foundation of Tencent, and it is impossible to give up. Other businesses are derived from the traffic and liquidity.

For a rational company, abandoning is an inevitable choice, so we can see that in addition to the social, security, cloud, the business of Tencent, which involves the security of the Tencent, is a spared investment, and for the cash cow business such as pan entertainment and games, Tencent is also reaping.

But one day, when the profit margins of these two businesses decline, Tencent can abandon and foster new high margin businesses. And for no profit prospects and no prospects for the future of business Tencent have been given up, such as the friends network, Tencent micro-blog, once the micro vision is directly shut down, such as Tencent search, pat and other businesses are packaged to investment allies. Because these businesses do not have a long-term foreseeable future.

Tencent, which has the same capital and capital, has 3 advantages:

    • With live resources and capital, fast flow realisation and capital appreciation;
    • Seeking allies to avoid subversive appearance;
    • Looking for allies and blocking the layout of competitors.

    Tencent’s traffic is not a loss, Tencent’s capital does not increase is wasted. In 2017, Tencent invested 106 yuan in total investment of 171 billion 43 million yuan, far more than more than 72 billion 500 million of China’s largest investment in VC Sequoia China, nearly 100 billion. Liu Chiping revealed at the Tencent investment annual conference in early 2018 that the value added by these enterprises has exceeded the market value of Tencent itself.

    So for Tencent, there are only two modes with high cost performance: social relations and investment strategies. And these two businesses are long-term and sustainable businesses that generate revenue and prospects. For those Tencent with limited energy and limited manpower, they will firmly grasp these two businesses.

    And the so-called “intermediate” product form seems to have given up the Tencent, forming the present hollowing pattern, but this pattern is undoubtedly the best solution to the Tencent in the near future or in the long run, and any enterprise will choose the same business logic in the Tencent position.

    Moreover, the Tencent’s hollowing is not a stable state. As long as Tencent is pressed with social relations and investment, as the intermediate state of the product, even if it does not guarantee fire, it can at least ensure that a large number of users live, such as the strategically abandoned Tencent micro-blog, even on the eve of abandonment, more than 8100 Ten thousand days live, this is the data that ordinary platform dare not think and user retention.

    If you are a Tencent, will you do useless work to maintain the so-called product intermediate layer?

    Moreover, the Tencent did not give up the product research and development, and the Tencent still put the product to the most important level. For games, security, cloud computing, and pan entertainment, the horse racing mechanism inside the Tencent is much more brutal than the imagination. It is such a cruel mechanism that the light has been lost 2 years after the loss of the king’s glory. With the strength of the Jedi to survive: to stimulate the battlefield, to wash away the shame.

    Tencent can not do all business, investment is the best choice.

    For Tencent, the ability of a company is limited. The ability of Tencent is summed up by Ma Huateng and other senior leaders after the 3Q war. One is traffic and the other is capital. Note that the core of the Tencent is that there is no product, so the result of the Tencent crazy investment, merger and strengthening of social networking is the result, and the Tencent other product business is not untried, but even the products that have a long product are also broken in many products. Such as micro vision, such as Tencent micro-blog, patting, search, friends network, QQ whirlwind, QQ chat room……

    Tencent has spent a lot of money proving that not every business is good at it, nor is it able to do all business.

    In addition, today’s headlines, quiver, and fast new format, not to mention Tencent Tencent can not keep up with, BAT three have not kept up. Big companies must realize that you can’t understand some businesses, even if you don’t understand them, you can’t learn them well. If you can’t do well, you might as well just let go and focus on your strategy.

    And the air gap continues to accelerate, the development of the Internet is at a tremendous pace, and investment is the best mode for doing bad business. The social and flow advantage of Tencent is the strong performance and user growth point of most enterprises. On the other hand, the financial advantage of Tencent and the investment strategy that do not intervene are also very useful for the entrepreneurs. This is why many companies are inclined to choose the key to Tencent investment. The most typical one is the US group.

    For large companies, marginal subversive innovation brings or subverts the existing pattern, and the antennae and business of the big companies are impossible. That is the best way to invest. On the one hand, investment can make the potential business of new companies do not create a subversive pattern of the existing business of large companies; on the other hand, new companies in the development period are also worried about their undesirable investment opportunities to be transferred to the competitors’ income bag. Don’t let me throw it, I’ll go to your competitors “); the third is that the resources and experience of a big company can make the entrepreneur win the first advantage of the competitor more quickly.

    For Tencent, the same is true. Investment is the best way to form allies to consolidate industrial moat while sniping competitors. From the investment pattern, the most important thing that entrepreneurs want in BAT is Tencent investment. This also shows the success of Tencent’s investment and strategy.

    Why does Tencent have no dream and Ali has no allies?

    As China’s Internet two tier Tencent and Ali dad, the two investment strategies and industrial strategies are very different.

    Tencent is heavy on social networking, and all Tencent industries are efficient consolidation of social moat and social traffic. In terms of investment strategy, Tencent has an open, non controlling and non intervention management mode, so that Ma Huateng has a number of highly cohesive pony. Eventually formed the so-called “Tencent without dreams” results.

    Ali heavy trading, all of Ali’s products and industries are to strengthen the transaction simplified transaction process to do service, while trying to efficiently carry out the flow of goods. In the investment strategy, the Alibaba is also a part of Alibaba in which most of Ali’s investment is finally made by the high introduction model of the first investment and the final merger. Finally, the result of the so-called “Ali has no allies”.

    For a Tencent with more than 40 thousand employees, don’t know that the fast money that the investment brings to the Tencent’s existing product business? For more than 70 thousand employees, don’t know that the logic of the total acquisition will dislike most entrepreneurs who have an ideal attempt to develop independently.

    Since it is impossible to know why, why does it still appear irrational products and investment strategies for ordinary users? No reason for it, because both for the Tencent and Alibaba, in the foreseeable future, the current strategy is the best solution both in the long and short term.

    For the Internet industry, the social networking of Tencent is high frequency and just needs. Communication, interest, and goods are all social. As long as the lifeblood of the society is firmly grasped, both the flow retention and the new product hatching have great predominance. WeChat’s seed users come from the relationship chain of QQ. The seed users of Jedi survival come from WeChat and QQ seed users, and the high retention of Tencent games is also derived from Tencent’s social relations.

    In a sense, the Tencent will continue to strengthen and explore new social patterns in the social field, and for non social products, in addition to the strategic level of Tencent’s ecological products, it is a chess piece of Tencent. When Tencent needs to give up all the games one day, Tencent has no impact on business except for meat pain. Tencent can quickly upgrade from a game company to a new industry company with a high Maori.

    The strategy on investment is also understandable that Tencent has the biggest flow and the strongest liquidity channel. For Tencent, Tencent almost does not need a new industry to complete its own industrial layout, so there is no need to buy a new product, unless such a product is the strategic focus of the strategy or shaken the social society. The foundation.

    So Tencent can invest more in a more open manner, and can also pack its own traffic entry and existing business to the investor. This strategy is not only easier for Tencent to get the favor of the investor in strategic synergy (such as by borrowing investment to push WeChat), but also easier to avoid new products. Impact or subversion to the main industry of the Tencent.

    With the open investment strategy, Tencent has a large number of allies. After all, there are too few investors who send money and send resources.

    But for the Alibaba, what is not the case, the core of the Alibaba is the transaction, and the transaction has a large number of key factors: 1, the continuous flow of import; 2, continuous and efficient transactions.

    So whether it is Alipay, Taobao, salted fish, mom is essentially in order to facilitate transactions, mergers and acquisitions and hungry, Gao De, UC, excellent soil, hellobike, box horse Xiansheng essence in order to improve transaction conversion rate reduce transaction threshold. Because the trading industry is far more challenging and competitive than the social sector. The social chain can only choose one or two platforms for users to use as a high frequency product, but e-commerce is different. Users need only a reliable platform to buy and sell products. So we can see that in addition to, Amazon, Jingdong, small red books and other products are constantly diverting Taobao trading users and transaction data.

    As a Alibaba, it can only strengthen its own moat by the key factors of trading, and make it an indispensable Internet infrastructure. So the initial Alibaba to buy the flow of crazy, because the pure Taobao Tmall shopping flow of natural growth is easy to see the top, then Alibaba’s merger and acquisition is mainly to improve the success rate and convenience of the transaction.

    Such as the acquisition of hellobike is to promote the low Star City Alipay business and auxiliary Taobao deal. Why does the Alibaba want to buy rather than invest? Because Alibaba wants to build all the business services for the enterprise, the enterprise only needs to build shops on Alibaba, and other Alibaba can complete it, and if it is pure financial investment, the cooperation between the investment enterprise and the firm will not be too smooth and will be invested. On the basis of their own assets, the management will not be able to unconditionally support the strategic layout of Alibaba.

    In the end, the Alibaba’s trading infrastructure will be set up. It is possible for the enterprise to get better transaction services only if all aspects of the transaction are completed by Alibaba itself.

    For the Tencent and Alibaba, the current strategy is the best foreseeable strategy, and the strategic layout of the hollowing is not only not to indulge in the Tencent’s own dream, but to choose and retreat freely, from the strategy of encroaching to the final swallow.

    AiShangHai LoveShangHai