Chapter 26: Pretending to be a Divine Stick
"We can make a bet, just this year, after my analysis, I think before the end of this year, there will be a huge impact of Internet companies going out of business. Chen Yu'an smiled, you ignore the power of the bursting of the dot-com bubble, and it wasn't until 2015 that the NASDAQ index returned to its highs of March 2000, and in the process of bursting the bubble, about the average Internet company fell.
"If you're not convinced, I can even point to a particular company that I think will be one of the first Internet companies to fall because of the huge flaws in its business model!"
It is a typical case of bubbles that has been widely criticized since 2000. The company sold pet-related products on the Internet, and one of the reasons for its popularity in those days was due to its successful marketing tactics, with a very cute doll mascot that was often advertised in the form of interviews with people on the streets, and its popularity was extraordinary, appearing during prime time for the Super Bowl and printed on balloons at the Thanksgiving Day parade.
With its unique business direction and marketing methods to win the attention of many venture capitalists, the website raised more than $100 million in four rounds of investment before December 1999, which can be regarded as one of the most well-known Internet companies today, and its business model is also highly regarded by these industry insiders.
"Impossible, the American people are very fond of pets, the pet toys and pet food they operate have great market potential, and through the early publicity and promotion, the name has been widely known, and consumers will definitely think of them at the first time if they buy pet food or toys. "This forum is full of Internet professionals who know the situation very well.
"Don't you use our domestic situation to infer the situation in the United States? Now there are not many people who have pets in China, and the demand for pet food and toys is far less than that in the United States, but the United States is different, almost every family here has pets! You said that there will be Internet companies that will go bankrupt, I believe, but it will never be one of them. ”
In a few years, you should have a headache for too many pets in China, Chen Yu'an shook his head and began to refute these people's remarks, "The United States does have a huge demand for pet food and toys, and the early publicity and promotion strategy is also very good, these two points alone have outperformed many Internet companies, but they ignore a very important point." ”
"That's how to get the goods to the consumer, although many people are willing to spend money for pets, but for most consumers, it is not cost-effective to buy cat litter and canned dog food from the Internet across most countries, because many pet products are heavy and expensive to ship; at the same time, the company sells a small number of pet toys to make a profit; ”
Due to the reason of labor costs, it takes huge expenses to establish a perfect logistics network in the United States, even when Chen Yu'an is reborn, the logistics network in the United States still cannot be compared with China, so there will be many Americans who envy the convenience and speed of online shopping after coming to China.
It also became the first Internet company to go bankrupt, and Chen Yuan was very impressed by this.
"It seems that this is indeed the case, the last time I bought something online, it took half a month to send it to me, and the courier fee is almost more expensive than the product, if there is no way to change this situation, their prospects are really not optimistic. After being silent for a long time, Zhuo Zixu was conquered by Chen Yu'an's point-to-point comments, and he quickly sent the link to the webpage to Kou Yufeng, asking him to also watch the debate on the future of the Internet.
"It's impossible not to realize this, they must have a suitable solution...... Of course, there are also people who are unwilling to admit defeat and find all kinds of evidence to try to refute Chen Yu'an's prediction.
"Anyway, it's only a hundred days before the end of the year, we'll see it then! After talking about the unreasonable business model, maybe we can talk about those companies' business models are more perfect, and can survive and grow in this tide, I think Google's keyword advertising business is a very powerful profit model, they not only do it like the media to sit on the advertising fee, but also save the traditional media need to bear the operating costs and distribution channel costs, it is simply a money printing machine. ”
Now Google has only been established for two years, and there are still more than three years before going public, Chen Yuan is confident that he will have a foot in it, maybe he feels that Google's fame is not loud enough, and he moved out of a large company as a negative example, "It also started with a search engine, don't look at Yahoo's market value this year once climbed to a high of $125 billion, but in terms of future prospects, Yahoo is far from being comparable to Google." ”
As soon as everyone was still wondering what Google's keyword advertising business was, Chen Yu'an threw such a big bomb, and immediately added another fire to the oil pot, and the bigwigs of the entire forum poured in to refute Chen Yu'an.
Now Yahoo's status in the Internet industry is higher than Google, Facebook, and Alibaba when Chen Yu'an was reborn, and Yang Zhiyuan has also become an idol in the hearts of countless Internet practitioners, which is higher than Jobs's status in the hearts of fruit fans.
Now when you see someone who despises Yang Zhiyuan's Yahoo, it's like seeing a nobody on the Internet criticizing Zuckerberg and Jack Ma's unsound business models?
"What is Google? It's just a gadget made by two students, how can it be compared to an industry giant like Yahoo? Even if they have some advanced technology, with Yahoo's financial resources, it won't be a problem to buy it at all." ”
Well, you're right, Yahoo did think about buying Google in the future, and in 2002, Page and Brin tried to sell Google to Yahoo for a billion dollars, but Yahoo hesitated to miss the opportunity, and coincidentally, they missed out on buying Facebook in 2006.
"In the Internet era, wave after wave, every time a new wave hits, it will take away a group of old-fashioned companies and create a group of new giants that cater to the times. Chen Yu'an crackled and analyzed a bunch of Yahoo's flaws, and then concluded.
Yahoo missed out on social, social and mobile in quick succession, and since then it has plummeted until it was finally sold to the American telecommunications company Verizon in 2017 for just $4.8 billion, less than one-twentieth of Yahoo's peak market value this year.
Google is so powerful? Why don't I go meet Page and Brin? Zhuo Zixu is tempted.