Chapter 75 Tencent's Way to Win Tencent Economics

Tencent Economics is a realistic interpretation of the long tail theory.What are the characteristics of this virtual "Wangfujing"? The reality of Wangfujing is a place where world-renowned brands gather. The story of this market is a market that focuses on hot spots, bustling crowds, and what they see is still a limited number of goods. . On the virtual Wangfujing Street built by Tencent, the situation is very different. The 80/20 rule is completely reversed here. The 80/20 rule is one of the most important concepts in the field of management thought. This principle was proposed by Italian economist and sociologist Waverley Pareto in the late 19th and early 20th centuries, so it is also called Pareto. trust rule.Pareto initially used the 80/20 rule to explain the characteristics of social structure, and later found that almost all activities are governed by the 80/20 rule. 20% of the population owns 80% of the wealth, 20% of the employees create 80% of the value, 80% of the income comes from 20% of the goods, 80% of the profits come from 20% of the customers and so on.

But in the Internet industry, everything is very different.Chris Anderson's long-tail theory illustrates this difference in detail.For example, in the Amazon online bookstore, people can choose a variety of books, and the number and quantity of books are infinite. According to the 80/20 rule, 20% of the books bring 80% of the sales. On the bookshelf, it has become a unique choice for publishers, and it is also a necessary choice for publishers to operate successfully.In online bookstores, the sales of bestsellers are still huge, but due to the large number of all non-bestsellers, the total sales volume is actually higher than the sales volume of bestsellers. This is the speculation made by Chris Anderson.

Long tail is a very common phenomenon in the Internet industry.Tencent's advantage is that it gathers popularity first, and the different needs of these people create different long tails. Games, e-commerce...the charm of economies of scope is exuded.Economies of scope refer to the diversification of various activities caused by the same core expertise, and multiple activities share a core expertise, which leads to the reduction of the cost of each activity and the improvement of economic benefits.In fact, its essence is to allocate resources at low cost to gain a competitive advantage.The phenomenon of product correlation naturally exists in the information industry, including the production process, influence process, service process, etc. Therefore, economies of scope are a common phenomenon in the IT industry.The reason why economies of scope prevail in the Internet industry is that the same company provides related software with a more similar user interface, which can improve user efficiency and save time and money in learning to use the software.

In the words of Wang Leilei, CEO of TOM Online, "Entered the era when rooted poles are also blooming". "Changing tricks means increasing varieties in economics. Adding varieties on the Internet can not only obtain higher added value, but also avoid price wars. In this sense, Ma Huateng's way of playing is the most profound in economics. Although he himself Maybe they don’t understand economics.” Jiang Qiping said.