US group’s trickle Wars: disappearing business boundaries and lost competitive strategies


Once a bell has been ringing

Sources of science and technology

Since 2018, the TMD accident has not been broken.

Xinhuanet made a summary of today’s headlines with “today’s headlines’ awakening,” but there is no answer to the controversy about the US group and the drip.

In particular, the US group took a taxi and took away the takeaway line. The Internet entrepreneurs’ beliefs about the boundary were broken, some clapped and some were busy cutting the leek.

“Everything is possible”, and drop dimension is asked whether a drop trip will make a new attempt to make a new attempt in a life service scenario, but more spectators are in doubt and concern.

For example, at the GIEC2018 global Internet economic conference, Xie Weishan, who is known as “the first person in the competition strategy”, has made a goodwill reminder to the & of the United States Group: “at the GMIC conference in April 2016, I was alerted to Baidu takeout… Now, the US group and the drop are also caught in a strategic trek, and the competition in the Internet industry must match the law of competition.

US group's trickle Wars: disappearing business boundaries and lost competitive strategies

(photo: Xie Weishan delivers a speech at the GIEC2018 global Internet economy conference)

Do you really understand the drip group or are they really wrong?

The break of the US business boundary is a “extreme” reaction after a drastic withdrawal.

In the era of big competition, business overlap between competitors has become commonplace, but this time the US group has been very uneasy, especially drops:

1, from time to time, the online sale of drop taking is a hasty response to the US group’s taxi drive.

In February 14, 2017, the group was running a taxi service   in Nanjing. In March 21, 2018, the Group officially landed in Shanghai and took off Hangzhou’s operating qualifications on the same day, starting a nationwide layout. According to media reports, in Shanghai, the group got 150 thousand, 200 thousand and 30 in the first three days of the group. Wan Shan, a total of 2 million 200 thousand passengers in a week, knocked out the market share of 1/ 3. The group directly burned the fire to the backyard of the other side and began to move. In April 9th, the drop out was officially launched in Wuxi.

“Your opponent will put a fire in your yard, and you will go to the other side of the courtyard to set fire.” Although this and the Microsoft realized that after the development of Google, the beginning of the search engine is the same, but from the point of time, how much more passive.

2, the drop is passive because the user scenario is cut by the US group.

The drop, the US group is safe and safe, but Wang Xing is “not doing business.” he is not as hungry as he put on the label of the takeout platform, and not as a drop in travel platform to define himself. In his logic, all the offline location based services can be done by the US mission, and even put forward the concept of “borderless”.

But in this contest, the reason for the drop is even more passive because the dripping scenes are being cut off by the service line of the US group. That is, from the decision-making chain of consumers, drops are standing in the middle of the consumer scenario, while the US group stands on the scene of terminal consumption.

In short, we go out to eat, watch movies or travel, is the purpose, taxi is only a process.

Therefore, the dripping takeaway line is precisely because the opponent squeezed into his core zone — the core user group and the most advantageous scenes.

3, the cross border robbery, in addition to a mask to cover up their core business growth, and more important is that there is no solid barriers to their core business.

Since its establishment in 2010, the US regiment has gone through the “1000 regiment war”, repelled Baidu Nuomi and curbed Ctrip. And with the subsequent financing of the trickle down, it also accumulated more than 12 billion dollars in cash. But they still do not go on the market, the reason is self-evident, the network about the pattern of car and the takeout industry has been fixed, the growth space left to them in the subdivision industry is not much, dripping over 90% of the market, touching the ceiling of the network about the car market. And the US takeaway can’t get hungry, so we have to expand our horizons into similar fields. But the reason why they choose to take the taxi and take away is that the technical barrier of the net car industry and the takeaway industry is not deep. The development cost and technical content of the taxi software are not high, the takeout industry is basically applicable, and the algorithms of the two are homogeneous and can migrate each other, and there is no natural technical barrier.

However, the biggest concern of the rings is whether such unbridled diversification will strengthen the brand or harm the brand.

The vanishing boundary, the vague brand, the lost competitive strategy.

At present, the brand has become the basic unit of enterprise competition, and many Internet giants such as Dixie group have lost their competitive strategy direction.

In a forum on the chairman of the competition strategy, Yao Rongjun, the chief lecturer of the Shanghai Jiaotong competition strategy center and CEO of Jun Zhi consulting, stressed that “channels, products and price wars are impossible to build a real competitive line of defense.” Any external differences can easily be copied, copied and used for reference. Only a difference is difficult to catch up with, that is the difference in your brand in the mind of the consumer, because there is a mental preference for the first, the mind is difficult to change, and so on. However, the online car strike and the takeaway will continue to shatter their differentiated cognition which was hard to build up in the minds of consumers.

US group's trickle Wars: disappearing business boundaries and lost competitive strategies

(photo: Yao Rongjun delivered a speech at the chairman’s forum of “the king’s way of competition in the era of great competition”)

Buffett once said, “we must seize the same thing”, that is, “the key to success is to master the psychology of the consumer and control the consumer’s psychology to control the market.”

But it is not the brand to tamp the consumer awareness, but in the consumption of the original knowledge of the accumulated brand, and cause great harm to the brand. There are two reasons:

1, the cognitive cost of consumers has become the highest cost of business.

This is not only because people have to overcome the long – term choice of inertia and empiricism, build new cognition, and cultivate new habits are very difficult, but also because there is a huge gap between the cognition of the enterprise and the cognition of the consumer. Bain Capital president said: “80% of CEO think their products are different from their competitors, but only 8% of consumers agree.”

Only when enterprises occupy the minds of consumers in the time window can they win the initiative in competition by occupying the mind. For example, in the automotive field, successful brands have a unique label – Mercedes – Benz is honorable, BMW is driving, Audi is a business, Volvo is a security, Volvo is safe, Tesla is electric, Ferrari is the speed, Jeep is cross-country, and other rivals are hard to take these exclusive nouns.

Xie Weishan, who has experienced a hundred enterprises’ strategic consulting, has repeatedly stressed that the enterprise should go to the soul of the consumer to “make a revolution” and have a relatively permanent difference in the heart of the consumer.

Today, the US regiment and the drops are the price war. Little does it know that price war can only pull users to try, but can not retain users.

As the people’s Daily said, it is not only by burning money, but “money burning tactics more and more Marginal Diminishing Effect”, which has become an industry consensus. The reason is that, in addition to an economic account, consumers should calculate a comprehensive account, such as personal and property security, privacy protection, and payment risk. That is, in front of the consumption upgrade, the comprehensive account is more important than the economic account. This is the place where the enterprise should put it into use, and it is the real competition blue sea.

Some people even commented that in the field of takeaway, drop taking is likely to take the road of Baidu takeaway, dragging down the revenue and future strategy.

2, brand core business and diversified business will inevitably lead to seesaw effect.

Xie Weishan also played an analogy at the conference, saying that there was a board in the mind of the consumer. God gave you a window, which would help you close a door, give you a door, and close a window. That is, the core business and diversification business are divided into two ends of the seesaw. When one comes up, the other will go down.

More for the business such as drop out.

First, the heavier the label is, the heavier the user’s mental anchoring will be, and the more harm the diversification business will have on the brand.

According to the strategy of competitive intelligence, a brand is always a very single and focused word in the minds of consumers. It will not have many complicated representatives. Taking drops as an example, the concept of drop and travel has been “anchored”. The bigger the takeaway business is, the more blurred the brand image will be. At present, all of the revenue comes from the travel business. Once the takeaway business is bigger, will it be called takeaway company or travel company?

Second, the more successful the expansion business is, the faster the brand will be diluted.

At present, the group’s plate is very large, but the main business of a cash cow is not, even most people do not know whether the main business of the group is the group buying or takeout, the group’s brand power is being constantly diluted by a number of business. In the interview with chief editor of Song Wei, “Di Cheng Wei” also said: “becoming a diversified company is a failure of strategy”. The low margin of takeaway and the low complementarity with the drop are bound to drag down the performance, and the profit schedule should be postponed.

For an inappropriate example, the brand is originally a “Star”, and the diversified expansion has made the brand a “passer-by”.

Staring at your opponent’s weaknesses will only help them to become stronger.

In the forum of the chairman of the competition strategy, Yao Rongjun shared the four steps of differentially winning the competition from the expert team of the competitive strategy of Jun Zhi, including defining competitors in the mind, exploring the competitive opportunities for differentiation, pressing the enemy to suppress the competitors and constructing the moat around the difference.

When he talks about how to define a competitor’s weakness, he stresses that finding out the inherent weaknesses of a competitor is the right way to play, rather than just looking at the weakness of the opponent.

Taking the two wheeled electric car market as an example, he wants to beat the main competitor at the time, not to stare at its shortcomings, but to stare at its greatest advantage – the low price and the weakness of the low price – the low sense. At that time, the main competitors had an absolute advantage in sales, but the long-term price war led to its brand and business operation only to adapt to the low price strategy. If the market competition focus turned to high-end, it would face consumer cognition, product, store image, price, internal organization and operation, and external supply supporting body. The system is not able to adapt, and the strategy is bound to be difficult to land in the near future. So he put forward the competitive strategy of “more high – end electric cars” and operated on the spread, product upgrade, terminal upgrade and so on, such as cutting down most of the low priced cars and reducing SKU from 30 thousand to hundreds.

Back to the drop of American war. It is reported that in spite of the early pursuit of the market, some drivers and passengers are worried about the quality of their service, and there are some negative emotions such as Che Feigui, driver service, map and big data, but this is not the “weakness behind the strong” because of competition. When an opponent appears, it is easy to “repair” and optimize services. A little bit of sweetness can make the original customers turn around. In the end, the US group will only win the traffic temporarily, but it won’t win.

Remember the Bell once took music and millet as an example to ask Xie Weishan, his answer is “business can be diversified, but the brand can not be diversified”. Later, we saw that millet realized many brands such as rice family and so on. But little drops of takeaway, and the US group to do a taxi, have not yet realized this problem.

In a word, as the competition strategy says, only the real construction of brand differentiation can help enterprises win their own competition. What needs to be done is to strengthen the differentiated cognitive advantage of the brand, rather than to continue the “branded cake”.

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