Secret Ali Baidu and other full service layout build a buffer zone

Tencent Francisco August 10th message, with the establishment of the new joint venture company Sogou, and a powerful domestic Alibaba reached a high-profile search engine market, to further "full service" layout: focus on the core business, to related business, to build a complete set of business ecosystem. Including Alibaba, China’s Internet has more and more Internet companies to start the whole business layout.

from the first game to the grand development of the network literature, video, music and even the field of hardware, Baidu from the search to the development of e-commerce, video, and even is entering the field of security and operating system, the security service started in 360 to expand in various fields, plus Tencent, Sohu, Internet giants seem to include all the business model.

generally speaking, there are four reasons.

first, the capital of greed

The profit of

capital, especially the pressure on the performance of listed companies, the Internet giants natural greed, as long as there is a broad market prospect will be waiting to enter. Analysys analyst Fang Li pointed out that with the size of the company, especially the listed company business is relatively mature, the profit rate gradually decreased, allowing them to continue to find new profit growth point, expect to obtain high returns.

Hong Bo, an Internet analyst at

, agrees, adding that it’s more of a Chinese Internet environment. Chinese Internet market does not encourage innovation, which makes the giants in the capital driven to imitate all kinds of existing business model, to swallow up or erode the market.

two, fear – build buffer

Internet giants are way ahead in certain areas, but not a diversified layout that allows them to sleep without any anxiety, often through the relevant business to build a buffer zone. Fang Li believes that the Internet giants do not try to diversify may die diversification means to build myself a moat, can withstand a lot of crisis.

Hong Bo believes that Internet giants have a fear that their territory was broken by foreign forces. Therefore, when the enterprise develops to a certain scale, will be to the large number of users, high income, and certain areas of expansion, this does not mean that can make money from it, but you can build a buffer zone, not because other companies have no scruples impact to their business.

A

example, Baidu helm

FT Chinese network for example with Baidu wrote. From the beginning of 2009, Baidu began a radical expansion, to enter or prepare to enter the video, e-commerce, security, operating systems and other fields. There are two reasons.

on the one hand from other Internet giants such as Tencent pressure. All of Baidu’s revenue comes from search engines, and rival Tencent income are distributed in the network games, virtual value-added, wireless, brand advertising aspects, and revenue and profit are several times more than Baidu. FT Chinese network analysis, with a diversified source of income

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