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Drops and excellent step China merger exposes the pain of the nternet venture

Posted by: | Posted on: February 20, 2017

August 1st is a magical day, rumors of a long time with the excellent step of China’s merger, and finally into reality. As the two giants of domestic travel, the merger is a little more fun, or a little more bitter. For the majority of Internet entrepreneurs is indeed very worthy of reflection. Summarize why can China yuho and drops with? There are many online comments, Mr. head here to sort out, and add their own thinking inside.

images from the Internet

first, excellent step China cost too much, but still did not see earnings

According to

reported that 2015 has excellent step China loss of $1 billion, began a long time since the melee and drops and step into the Chinese. They used their own subsidies trick, investors spent huge amounts of money. But still failed to achieve profitability, we all know that the ultimate goal of any product is profitable. This problem is not only on the merits of the body, even for many entrepreneurial Internet Co are the same. Most products are started by throwing money, for the funds of the company certainly is not a problem, but for many rely on financing to maintain the entrepreneurial company, if not into the second or third round of financing, entrepreneurial companies will fall in the darkness before the dawn, bitter and sad is inside.

second, the market capacity of regional saturation, market growth slowed

whether it is a good trip, eat or not, all of the Internet products are for the needs of the masses. Take drops and excellent step, is to solve the problem of mass travel. Demand is just demand, it is always saturated when. When a product in the market continues to decline in the growth rate, it indicates that the market structure in the product stereotypes. When the number of users in the growth rate of decline, if it is not possible to burn a wise choice. Compared with many entrepreneurial companies is the same, if the money is not allowed to keep the order of investors to continue to grow, then the fate is likely to be merged or closed down. So hard to get the results, willing to do?

third, in fact, the market is the most reasonable coordination of the wise choice

for Internet products constantly shuffling process, why some companies will be why some people are always with vigour and vitality, intense darkness without light. Not all disappeared products are not good, in fact, a lot of product experience is still very good. But because the market competition is too cruel, if it can not move forward towards a benign interaction, this is not only the loss of resources, but also the lack of social innovation power.

although the Internet world is very painful, but there are still a lot of people have to go forward! When understand the real node, we will choose deep thinking, and for each point to find feasible solutions. On the investment side of the blood transfusion, rely on the market insight is not solve the problem. Let the merger cases be vigilant





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