staged the Internet drama tells people, the Internet industry is a money losing industry. Especially this year, the Internet Co is burning war turns staged, you Changba me play, very lively. After the last drops and quick taxi subsidies to burn 2 billion 400 million this year, and one car, Uber, easy to car, driving on behalf of E joined, battle burn mingle. The room O 2O, between enterprises, hungry takeaway network, the U.S. group, rice, public comments and other war is more intense.

According to reports from the

China Internet e-commerce center data show that, even if already listed Internet Co, facing the fierce competition in the industry, also continues to burn. Take the Jingdong, the Jingdong in 2014 a total turnover of 260 billion 200 million yuan, but the annual net loss of approximately 5 billion, the reason is mainly in order to expand its own logistics and continued investment. In addition to these large enterprises, there are many new enterprises are also in the relatively small size of the money market, feels like domestic Internet Co burn.

well, is not all entrepreneurial companies is only one way to burn the

?

 

In fact,

venture companies rely on burn to the survival and development of the argument has some truth, because no input is not likely to grow, but rely on sustained burn and continuous capital investment, in order to obtain the growth of the company, but it is not a good project, proves that these companies lack of endogenous growth, and even business models is the problem.

we all know, now set up a Internet Co and build a business platform, the cost is very low, or even negligible, the main cost of the promotion costs above. Like those mentioned above, do a APP, cheap is thousands of dollars, a little better but also a few million yuan, build a website from thousands of yuan to several hundred thousand dollars, and promotion expenses are less in the hundreds of thousands of dollars, more than tens of millions, hundreds of millions of dollars. But if the project itself can not promote the case, automatic increase in membership and occupy more market share, relying solely on the burning flow growth of users, the project itself is a problem, or is the industry itself has been formed in the Red Sea, the competition is too intense, can only spend money flow.

Internet itself is a very light investment in the industry, and now because of external competition, has become a capital intensive heavy asset industry, which is the inevitable result of the development of the Internet to a certain stage. More and more heavy in the Internet industry, the environment, the emergence of changes in the driving force to stimulate the transformation of the Internet to find a way out, the inevitable.

build electricity supplier, my network is generated in this case. Because electronic commerce more and more heavy, the competition is very intense, but also by Alibaba and Jingdong and other giants monopoly, manufacturing enterprises living very difficult to develop, can only find another way out. This time, build electricity supplier

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