"According to the research report of the Investigation Department, our opponents are not blindly sticking money. Hang Yu said: "Meituan has formulated a strategic plan for small and medium-sized cities to surround major cities based on the 721 pattern. ”

Meituan classifies more than 350 prefecture-level cities and above into SABCD Level 5.

The S-level is a super city such as Beijing, Shanghai, Guangzhou and Shenzhen, the AB-level is the provincial capital of each province, plus the sub-provincial level such as Ningbo and Suzhou, and the CD is a third-, fourth- and fifth-tier city.

S-class cities are a battleground, and the vast majority of competitors have invested the most money and resources, and this prisoner's dilemma has led to the fact that none of the more than 5,000 group buying companies can achieve an absolute victory.

And if any of them can't do it, they will definitely not shut down their businesses in these cities until the end.

In S-class cities, Meituan's strategy is to bite the top three and not spend money to compete for the first place.

In the original history, Meituan's market share in the country has been ranked first in 12 years, and it is still not the first place in S-level cities, and it has not even been in 13 years.

But they always guarantee a certain market share, and it will never be significantly compared to the past.

Meituan mainly concentrates its resources on AB-level cities, and the profits obtained by these cities support them to fight a protracted war and a war of attrition in Beijing, Shanghai, Guangzhou and Shenzhen until they consume each other to death.

Because with market share, there is positive cash flow, which can be consumed.

For a large number of CD-rated cities, Meituan's judgment is that most of the more than 5,000 group buying companies will have problems within a year, and if they have problems, they will definitely withdraw from these markets first.

Therefore, Meituan will not enter first, and wait for others to exit due to problems, and then harvest those cultivated markets.

"It's a very shrewd strategy, no wonder it can be done to this extent, and it's really a big opponent. After listening to Hang Yu's introduction, Wen Yisheng and the others became serious.

"They are also very shrewd in their way of subsidizing, and there is no value in spending money on running water. Most group buying companies subsidize catering and movie tickets, in exchange for turnover and transaction volume. But once the subsidy is not given, the running water will be gone. Hang Yu said.

Meituan, on the other hand, has grasped the core element - the supply side.

Only by occupying a good supply can we truly solve the problem of competition.

So what Meituan is concerned about is whether Meituan has an advantage in those supplies that are unique to consumers?

For example, duck blood vermicelli is a snack category that NJ people and tourists love.

Meituan first understands which duck blood vermicelli soup is the best in NJ, and is to capture the commanding heights of this category.

Then go and research how much it sells on group buying sites. If it sells 50 copies on Meituan and 100 copies in the other two stores, they will go and talk to the boss, and I will give you the other 100 copies, and even promise to help you sell more.

As long as you cooperate with me exclusively, I will satisfy your sales.

Then, they subsidize the users who come to the store and achieve the promised sales through the subsidy. In this way, if users want to eat the best duck blood vermicelli soup, they can only come to Meituan.

Therefore, in Meituan's view, subsidies should not be for running water, the end of the subsidy is to stop the boiling soup, stab each other, and the supply side is the bottom of the kettle.

"I've seen it for a long time. Wen Yisheng said.

The urban differentiation mentioned earlier made Wen Yisheng and others realize the strategic awareness of their opponents, while Meituan's subsidy method made Wen Yisheng and others aware of the tactical methods of their competitors.

Strategies are often heroic, and this kind of tactics in detail seems more real and cruel.

"How does Zhang always deal with this situation?" Dong Ming said curiously.

"On the contrary, Meituan focuses on small and medium-sized cities, and we focus on developed regions. This is advantageous for us, because we have a strong base and deep capital in developed regions. Moreover, the developed regions are more rapidly deployed, and the benefits are greater, and we only need to squeeze out those competitors. Hang Yu said.

"This strategy is okay, what is the share of Ele.me in developed areas?" Dong Ming asked.

"At present, it is about 60%, because there are too many competitors in developed regions, and we can't defeat them all for a while, and it is already very strong to be able to account for 60%. Hang Yu said.

"Enough, let Mr. Zhang stabilize first, and we will follow up immediately. Dong Ming said.

"You'd better go to Zhang Xuhao's side, learn more about the current situation with him, and then negotiate a decision. Hang Yu said.

"I'll go tomorrow. Dong Ming said.

——

At ten o'clock in the morning of the next day, Dong Ming came to the headquarters of Ele.me, and Zhang Xuhao received him personally.

Zhang Xuhao already knows Dong Ming's intentions, and he also understands the group buying over the wall, and knows the importance of cooperation between the two sides. To a certain extent, group buying over the wall is the future boss, and Ele.me is just a branch of O2O services.

After all, group buying over the wall has such a business, and Ele.me is only responsible for the food delivery industry.

"Manager Dong, if you have any ideas, just say it, I'll listen to you. Zhang Xuhao said.

"Mr. Zhang, don't be so polite, we are working together on an equal footing, and we have to learn from you. Dong Ming said with a smile.

"It's just a waste of money and a lesson. Zhang Xuhao said modestly: "In this way, I will first talk about the current situation in the O2O market, and Manager Dong will give his opinion after listening." ”

"Please. Dong Ming said.

So Zhang Xuhao explained the battle situation of the domestic O2O market in detail, saying that it was a hundred group war, but in fact, the main opponent was Meituan, and most of the other group buying platforms were desperate.

These stubborn guys are annoying enough, there is no way, you can't expect the other party to take the initiative to admit defeat. Most people don't hit the south wall and don't look back, and the founders of those group buying platforms are losing money and falsifying data for the sake of profit, and they have to survive.

In fact, many founders know in their hearts that they are not opponents of Jiangyan Company and Baidu, and most of them are lucky. There are also some who hold on to the idea that if they hold on for a while, they will be able to make more money.

All sorts of falsified data, seeking investment from big bosses.

They dare not think of hundreds of millions, but the investment of hundreds of thousands and millions is also very good. Getting a million-dollar investment and putting 100,000 yuan in your pocket is much better than a part-time job.

So once there is such an opportunity, the product founder will not take the initiative to quit anyway.

"According to the conventional development method, we start with developed regions, but Meituan focuses on developing small and medium-sized cities first, and occupies a large number of markets before we even set foot in it, and it is obviously difficult to compete for it now. Zhang Xuhao said.

Zhang Xuhao's approach is not wrong, because Hangyu has made so many products, most of which start from developed areas. The market in developed areas is dense, and it is easy to spread out, and market experience can be quickly obtained at a small cost.

Although Jiang Yan Company has money, it is impossible to make a comprehensive layout as soon as it comes, in case the business strategy is wrong.

As a result, in the early stage of development, small and medium-sized cities became a large blank and were occupied by Meituan.

"The chairman has told us that our suggestion is to work together to stabilize more than 60% of the market in developed areas first, so as to ensure that the products can be operated independently and not burden the headquarters. Dong Ming said.