Chapter 3057: Competition must cool down

Zhou Buqi will only be back in China for a few days this time. In addition to temporarily replacing Zhang Yiming, the other thing he needs to do is to resolve the current domestic online ride-hailing war.

Competition is okay.

But the competition is too fierce.

It’s okay for everyone to spend money to subsidize the market. If you want to change the living habits of ordinary people and break the past rhythm of life, you must take strong actions. The meaning of subsidy is to throw money at it, which is a kind of confrontation of human nature.

Use the mentality of being greedy for petty gains to fight against the strong inertia of life!

Without such a strategy, it would be very slow to develop the online ride-hailing market.

Taxis are pretty good, so why should we learn new things or change our way of traveling?

It’s just that money is being burned too much now.

Even if there are three giants behind Didi, Kuaidi, and Suidi, they still can’t bear it. In other words, it’s not worth it. There’s no need to compete so aggressively. What’s being exploited here is people’s mentality of being greedy for small gains. A little advantage is enough. You can make up for 10 or 20 yuan without a single order. This is a bit Too many.

Unexpectedly, Li Yanhong also talked about radical competition.

It is placed in the search business of Baidu and Weidian.

Zhou Buqi didn't pay attention at all, "Oh? Really? I'm not sure."

Li Yanhong said: "The main way to make money from search is search advertising. Of course, the existence of search advertising will definitely affect the user's search experience. Sometimes when users search, there are several ads on a page. But this It is a necessary way for a company to survive, especially now that Ziweixing is also listed, performance and profits must also be considered.”

Zhou Buqi nodded, "Indeed, everyone does business just to make money. A competitive strategy that harms others but does not benefit oneself is a bad strategy from a structural point of view."

Li Yanhong gave a thumbs up, "Well said!"

Zhou Buqi smiled and said, "What happened?"

Li Yanhong sighed, "Many of Baidu's partners are very distressed now, saying that Weidian's mobile business, in order to compete with us for market share, is rejecting a large number of ads. Sometimes after a search, there is not even an advertisement on the entire page. "

"oh……"

Zhou Buqi was unaware of some business frictions.

But what Mr. Li said was very clear from a strategic perspective. This was the strategy he had formulated.

Not only domestically, Ziweixing International also does this in overseas markets.

There are many apps in the market with similar designs and functions. How do you kill all your opponents and become the only one that survives and dominates the market?

Using traditional thinking, large-scale dumping at low-cost or even lower than cost prices will kill all competitors. After all the competitors are dead, then raise the price slightly and balance the prices to ensure that you can monopolize the market and ensure that the profit margin is not so high that competitors will come back again.

However, this is restricted in various countries.

This is a typical example of vicious competition.

It's different when it's disguised as the Internet. Other apps want to make money and place a lot of ads in the app. If there are too many ads, the user experience will definitely deteriorate and users will not like it. If an App does not place ads during the competition period, it can greatly improve its user experience and product competitiveness.

Others make money, but I don't.

I only rely on the high subsidies given by the parent company to survive.

You can easily defeat your competitors.

After defeating competitors and forming user habits, start increasing the amount of advertising.

Just like the current online ride-hailing war, who wants to make money? snort! Not to mention making money, whoever receives less subsidies will lose competition and be eliminated. It is really difficult for traditional taxis to survive under the pressure of online ride-hailing services.

If Weidian App limits advertising and gives up its own profits, it will have a firm advantage when competing with Baidu.

Just like JD.com defeated Dangdang.

Dangdang’s core business is books, and it mainly relies on books to make money; JD.com has also launched its own book business, but it does not expect the book business to make money at all. .

Li Yanhong said: "Baidu is a listed company, and Ziweixing is also a listed company. Baidu invests a lot of money in development every year, and the same goes for Ziweixing. So we all need advertising, and we all need profits. We can't do it because of some small competition. Just give up on something more important.”

Zhou Buqi joked: "If Weidian makes less money, Ziweixing can't afford it."

Li Yanhong said solemnly: "It's not about whether we can afford it, but it's not necessary! Baidu also has sufficient cash flow, and many of our businesses are doing very well. If we really want to compete, Baidu will not be afraid! In the end, The result will definitely be a lose-lose situation!”

Although Zhou Buqi disapproved, he did not provoke him any more and said with a smile: "What you said makes sense. What I always admire most is fair competition. Especially in the domestic market, everyone is a friend. There is no need to fight. It’s best to put them on an equal footing.”

Li Yanhong was very happy, "That's how it should be!"

He was really worried about being rejected.

The main reason why he asked Boss Zhou out instead of Zhang Yiming was because he knew very well that even if he asked Zhang Yiming, or someone from He Yang, Guo Pengfei, or Wang Xiaochuan, he would definitely be rejected.

If you don't say it out loud, it may lead to intensified competition.

Boss Zhou is different.

He should be more gentle in dealing with people.

Li Yanhong said: "The competition in search has settled down, and the era of scrambling for land has passed. The next stage has entered a period of deep cultivation and the competition needs to cool down. If the two sides continue to compete fiercely for land like in the past few years, it is very likely that the already calm search market will become chaotic again. Once it is chaotic, it is easy to cause problems, which is not good for anyone."

"Do as you say..." Zhou Buqi agreed to him, "You tell me, what to do! How about setting a standard, such as the advertising content of each search page, cannot be less than 20% or how much?"

Li Yanhong said: "30%, each page generally has 10 search results, mixed with 3 ads, which is still quite reasonable."

Zhou Buqi glanced at Guo Pengfei, "How is it?"

Guo Pengfei laughed and said: "I don't know much about the search side, but... it feels about the same."

"Okay, that's it."

Zhou Buqi didn't care much about this little thing about the search business. Baidu's medical advertising has a lot of thunder and lightning, and he just needs to wait. He is more interested in outsourcing.

For example, Baidu's outsourcing of search advertising.

Mr. Li has publicly said that Baidu's ads are very clean. Not only are there no ads for fake drugs, but in order to avoid suspicion, they don't even advertise real drugs.

This is the truth.

But there are outsourcing circles behind it.

He outsourced part of the advertising promotion business to the outsourcing company... This is very fierce. This kind of outsourcing company doesn't care about anything. It must be eyeing the most profitable ads. The most well-known is the long-term cooperation with Putian.

Once something goes wrong, at least from a legal perspective, it has nothing to do with Baidu. It is the responsibility of the outsourcing company.

Outsourcing can shirk responsibility.

When something goes wrong, they put the blame on temporary workers. From top to bottom, all walks of life do this.

Outsourcing can also easily get into trouble.

For example, the bank's leak incident is much more serious than the malicious code implanted in the backend of Baidu's two clients this time. The most malicious code implanted is to hijack some traffic and then get more advertising fees from Baidu.

Many banks also outsource their technical services.

There are too many cases of malicious code and malicious vulnerabilities being implanted. Information of hundreds of thousands or millions of people is leaked at any time, and it is all bank information. It is clear who has money and who has no money.

Once many criminals get this kind of information, they can target and defraud precisely.

Zhou Buqi wants to ask Mr. Li for advice.

This time, Baidu encountered an outsourced insider incident. On the surface, this is an individual problem and the responsibility of the insider. But in fact, whoever has the power should bear the responsibility. This must be a problem with some internal processes and systems of the company.

Zhou Buqi can take this opportunity to learn Baidu's rectification strategy and then optimize it on Ziweixing.