Chapter 16 Why Ma Huateng's Business Thinking Carrying Pole Blooms

Character determines destiny.Like all Chaoshan businessmen, Ma Huateng is hardworking and pragmatic. He is extremely disdainful of the saying in the industry that "everything with rooted poles blooms": "There are many platforms with a huge user base, such as games, mailboxes, and portals. Why did the expansion succeed? There are very few of them?" Hundreds of millions of QQ users are indeed an advantage for product promotion, but they may also be a trap.Whether it's games or news, if you push it out if it's not done well, it's tantamount to harassing users and leaving a bad impression.The prerequisite for this double-edged sword to work is that the quality of your own products must be excellent.From the expansion of Tencent's online games, portals, C2C, and search, we can see a rule: while ensuring cash flow, start core seed businesses other than IM at the same time. The premise of seed business is that the profit model is clear. Tencent Establish a small-scale team for trial operation; in this process, integrate the new business with the core advantages of IM. Once the integration is successful, the dawn of hope will appear.

Ma Huateng is very jealous of the practice of burning money and enclosing land as soon as he comes up.Slowly groping and gradually gaining results can control the cost; if the expenditure is too large but the results cannot be seen in the short term, there will be pressure on the capital market and it will be difficult to explain internally.In the long run, the logic is the same. "We hope to grow steadily and healthily for a long time. We don't have to rush too high. We can go slowly." This is the most enviable advantage of Tencent, so "Little Penguin" doesn't mind Go hug someone.From the current point of view, its strategy of following its opponents has also repeatedly succeeded.For example, Tencent's current profit-making "QQ Show" was originally adopted by NetEase Ding Lei in China, but it was shelved due to the lack of a user base like Tencent.Ma Huateng also joked that his friend Ding Lei was "drilling the well halfway, and ran away before the water came out."

And qq.com is Tencent's portal strategy two years ago.At that time, the concept of portals was no longer new, and the competition of portals had entered a fierce stage, but Tencent still squeezed into the first army of portals by virtue of its "launch mode". In the first quarter of 2006, Tencent's online advertising revenue was only US$5.2 million, and Ma Huateng set his own goal: to match the future revenue with the traffic, in short, to "surpass Netease".A year later, according to the financial report for the second quarter of 2007, Tencent's online advertising revenue of US$15 million was not only easily surpassed by NetEase's US$8.6 million, but it was nearly double that of the latter.In the portal camp, qq.com ranks first in terms of traffic, leaving Sina behind; it ranks third in revenue, surpassing NetEase in an all-round way. Qq.com's portal traffic supremacy has laid the foundation for threatening Sina and other portal websites that mainly rely on advertising revenue, and will soon become a successful example of the Tencent family once again.

The high growth of online games, which traditional portals such as Sina and Sohu have always dreamed of, has also become a reality in Tencent. In 2005, Tencent's investment in the field of online games began to bear fruit. The substantial growth of business also verified the value of the platform and its long-term business development strategy.When online games brought strong performance growth to Tencent this quarter, it can be said that Tencent's strategy has worked again. When someone suspects that Tencent has no "technical content" and is relying on "simple imitation + QQ users" to enter the world, Ma Huateng disagrees with this simplistic statement of Tencent's development strategy: "In the process of expansion, we are very Rely on QQ, but at the same time, our newly added services have also changed the QQ community. You can’t think that with instant messaging, you can do everything without effort. Games, portals, entertainment, search, e-commerce, if there is no instant messaging to help If it is not as good as the opponent, it will definitely not develop in the long run.”

Under such a strategy, the shoulder pole will blossom.An Internet industry insider who has studied Tencent for a long time believes that there are three main reasons for Ma Huateng's success from his personal point of view: First, Ma Huateng has a tenacious will and perseverance.When I started instant messaging, I couldn't find a profit point at all, and I couldn't make money. However, under extremely difficult circumstances, Ma Huateng persisted.He may have wavered, but it never occurred to him to give up.Secondly, Ma Huateng has a rigorous style of running a business, which seems to be born with rigor.Ma Huateng knows what the company should do and what he should do at every stage of the company's development. He is a master at formulating corporate strategies, and he is willing to take the lead and set an example to implement the established strategies.Third, Ma Huateng is also very strict in life. Even in various rich lists, his personal wealth continues to increase, and his rankings continue to jump up. negative news.Reports about Ma Huateng are all related to work. Ma Huateng focuses on work, and work also rewards him with fun and honor.