Just when Glorious Film and Television's "Those Years, the Girl We Chased Together" was in full swing, another big event happened on the Internet of the Celestial Empire.

On August 11, 2005, the seventh day of the seventh lunar month, the day when the Cowherd and the Weaver Girl met across the galaxy in the ancient legend of the Celestial Empire, Yahoo, the world's first gateway, and Ali Baba, the e-commerce leader of the Celestial Empire, came together and announced that they had formed a strategic cooperation alliance through a series of trading arrangements. The news came suddenly, and it immediately shook the industry as soon as it was announced.

However, in Jiang Hui's view, as early as 2003, the seeds of cooperation between relevant parties were planted.

In 2003, Yahoo acquired 3721, the largest search company in the Celestial Empire at that time, and handed over the business of Yahoo Celestial Dynasty to the 3721 team to manage.

However, the cooperation between the two sides was not pleasant, according to media reports, the original 3721 team believed that Yahoo Tianchao was too restricted by Yahoo headquarters in terms of business decision-making power and use of funds, and missed the opportunity to catch up with Du Niang to compete for the leader of Tianchao's search market.

Yahoo's gateway in Europe and the United States is the first in the local area, and in the island country and treasure island, Yahoo has successfully stuck Google and driven away eBay. But in the Celestial Empire, instant messaging is the domain of Penguin and MSN, advertising is dominated by Sina, Intranet, Sohu and NetEase, online games are the territory of Shanda, Guanghui Games and the Ninth City, and a series of companies of the Guanghui Group, such as Guanghui Weibo and Tudou, are located in the Tianchao Internet......

Yahoo has been working hard in the Celestial Empire for seven years, and only search has barely occupied a place in the Internet-making business, and is facing strong competitive pressure from Du Niang and Google. If you don't want to exit the Celestial Empire, the most promising market, what should Yahoo do?

In 2003, Alibaba's new Taobao network was launched, and after winning the B2B (business-to-business e-commerce) market, it entered C2C (person-to-person e-commerce).

At the beginning of Taobao's birth, it was almost strangled in the cradle, and the international e-commerce giant eBay "blocked" Taobao on large websites such as Sina, Sohu, and NetEase by paying double the advertising fee. As a last resort, Taobao adopted the combat method of "surrounding the city from the countryside", setting up pop-up pages on small and medium-sized websites, and at the same time using platforms, light boxes and body advertisements to carry out offline publicity. After a series of marketing innovations, Taobao won the survival. In the first half of 2005, Taobao held 55 percent of the market, although eBay strongly questioned it.

Although Taobao has achieved market share success, this success is based on the premise that Taobao is free and eBay charges a fee, which has put Alibaba under financial pressure. In addition, this year, Dangdang and Penguin have announced their entry into the field of online shopping, and Taobao will face an even worse environment.

At this time, SoftBank, the major shareholder of Ali Baba, has successively added funds many times. Although Taobao has achieved great investment success, venture capitalists led by SoftBank cannot enjoy the joy of listing and cashing out, because Boss Ma insists on waiting for Taobao to defeat eBay, Alibaba and Taobao to monopolize the B2B and C2C markets before going public, and in order to continue the fierce competition with Yiqu, Taobao needs to further increase investment.

These venture capitalists are not like Jiang Hui, who is reborn and knows the development of later generations. Should we continue to invest in supporting Boss Ma's dream of an e-commerce empire, or should we enjoy the phased successful cash-out exit of investment? Different types and styles of venture capitalists have different judgments on this.

In the context of this series, it is not surprising that Yahu Celestial Dynasty and Alibaba are walking together. Through this merger, Alibaba has received sufficient development funds and laid the foundation for the future Internet giant.

The vast majority of people may not realize that the Internet pattern of the Celestial Empire has been basically formed after this.

If there is no Jiang Hui, then it is the triumvirate pattern of Du Niang, Penguin and Ali Baba, plus some other companies. Although Shengda Network and NetEase are also giants now, in the future, except for BAT, others belong to "other companies".

In this life, after the Guanghui Group, the pattern of the Internet in the Celestial Empire can be said to have undergone relatively big changes. Now the top of the Celestial Empire's Internet pyramid has become the Guanghui Group, then Du Niang, Penguin, Ali Baba, and then "other companies".

Du Niang went public this year with a market value of 40 billion; Penguin went public last year and now has a market value of more than 30 billion; and Alibaba is not listed, but the valuation after the merger has also gone to more than 30 billion. As for the Korn Glory Group, no one can calculate its valuation now, and perhaps the first three need to add up to fight it.

Therefore, in fact, it can be said that the pattern of the Internet in the future of the Celestial Empire has been formed. The "one super and three strong" will continue to expand their share in the Celestial Empire's Internet market. Presumably, in ten years, 80% of the resources of the Celestial Empire's Internet market will be in the hands of these four groups, and other companies will share the remaining 20%, which just coincides with the 28th law.

The 28th law, also known as the 80/20 law and Pareto's law, also known as Ballett's law, the law of least effort, the principle of imbalance, etc., is widely used in sociology and business management. It was discovered by the Italian economist Baledo in the late 19th and early 20th centuries.

He believes that in any group of things, the most important is only a small part of it, about 20%, and the remaining 80%, although it is the majority, is secondary, hence the law of 28.

This law is very much in line with various situations in reality. For example, 20% of people hold 80% of their wealth.

After this market pattern is determined, it will be difficult to break this pattern unless there is the next technological revolution or the "one super and three powers" die by themselves.

For example, Guanghui Group, in addition to the current companies, Jiang Hui is already arranging for the mobile Internet market, that is, the future smartphone market. In addition to developing apps for smartphones, existing companies are required to develop new applications that take into account the characteristics of smartphones.

For example, Radiant Games is now cooperating with Radiant Mobile to develop games for smartphones, such as cutting watermelons.

For another example, Guanghui Data Center is developing "Guanghui Cloud" applications for smartphones and computer lights.

At the same time, as an emerging venture capital-like company, Korn Ferry Investment is also constantly receiving capital injection from the group and investing in various Internet companies.

Not to mention Jiang Hui's WeChat and Yue Bao, as well as sharing economy-related products.

All this means that in the future, the Internet market of the Celestial Empire will be more and more concentrated in the hands of a few giants, forming a situation where the strong take all. This may be one step ahead, step by step.

(End of chapter)