Chapter 678 Search Engine
Since three years ago, Starry Sky has gradually embarked on an independent and special journey. First of all, it is to start from not working overtime and call on the industry to abide by it.
In the supply chain of Starry Sky, anyone who can intervene will have strict requirements in this regard since two years ago.
In recent years, the staff of the Starry Sky Department have gradually adapted to this atmosphere, and have also allowed many talents who have a certain pursuit of life to join the Starry Sky.
Starry Sky did not lose its competitiveness in the company, but instead did it better and better. The smartphone market has only used two and a half generations of products from fifth to third and then first. Nut phones can only be considered half generations. From the release to the Double Eleven shopping festival to the end of the year, it sold a total of 1.5 million units, which also allowed Starry Sky to win the first place in this market sales.
Of course, this is based on sales. In terms of the number of individual items sold, the first one this year is Xiaomi mobile phones. In most markets with prices above 2,000 yuan, Xiaomi is on sale at a price of 1,799 yuan. With transparent configuration, it directly compares the price of mobile phones with the same configuration of its competitors, which starts a price war.
Of course, Xiaomi's success is one of the price factors, and the other is software. iui has done a good job among Android customization manufacturers. It can even be said to be the first now. Whether it is Sony with faith, the new company of the beautiful president, the small and beautiful Aida, and China Coollian, the four terminal manufacturers that rely on communication service providers, they are really not as good as Xiaomi's iui in Android customization.
Success is not a lucky chance. Yang Yi made a name for Starry Sky Os with a specialized flash system based on Java, and gained the first batch of customers. He opened up the market with high quality and high price. This path has been completed. Many manufacturers or individual entrepreneurs tried to imitate Yang Yi's entrepreneurial path, but Mr. Qi Baishi said that those who learn from me live, and those who are like me die.
Those who learn from me are the students who learn the essence and strengths. After learning to transcend, they will develop; if you only learn to resemble the form, there is only a dead end.
Xiaomi has learned the essence and has also seen the consequences of breaking its head. First, after making a name for iui, then resolutely decided to take the cost-effective route.
There is no way. In the high-end market, Starry Sky is the only one, and Apple follows closely. The products of various manufacturers are also competing for this market. This is a red ocean. Xiaomi does not have the capital to compete for a seat in this market!
There are indeed manufacturers who are low-profit and high-cost-performance, but they are not satisfactory in quality and quality control. Perhaps if there are several years of capital accumulation, one or two good manufacturers can be produced, but Xiaomi has made it first.
1,799 yuan, this price is even a loss in hardware. The more you buy, the more you lose. However, Lei Jun, who has started a business several times, is willing to invest this cost. He saw this trend, which may be the only trend he can grasp now.
Besides, after the accessories of electronic products reach a certain scale, the cost will be divided into mold costs. As long as the sales volume reaches a certain level, the cost will naturally decrease. Over time, the prices of many accessories of electronic products will also gradually decrease.
Lei Jun estimated that Xiaomi 1 will turn losses into profits as long as it reaches tens of millions of sales. Now each unit loses dozens of yuan, which is only a few hundred million yuan, and he can still afford to lose money.
Xiaomi 1's mobile phone ID design is all completed by the hardware teams of Motorola and Nokia, which are now gradually laying off employees. Most of the mobile phone production is manufactured by Hon Hai. This is to hit the stars. Everyone is from the same OEM factory.
The mobile operating system uses the iui operating system modified by Xiaomi based on the source code of the Android system. It was officially released at the end of last year and is priced at 1,799 yuan. It is mainly aimed at the crowd of mobile phone enthusiasts and adopts an online sales model.
The hot sales throughout the year have also attracted the attention of the market. In the middle of the year, the communications providers were opened up and entered the sales channel of charging phone bills and sending mobile phones.
Due to various reasons, they directly won the championship of the best-selling single products of global smartphones this year. Of course, if sales are calculated, there will be a few in the global market. However, before old empires such as Nokia and Motorola, these companies are almost dead.
When Star Sky released the preheating of Nut Mobile Phones, the most nervous thing was Xiaomi, for fear that Star Sky would create a cost-effective brand. After that, when Nut Mobile Phones started to be sold, Xiaomi was relieved. Although Star Sky made it cost-effective, Star Sky's cost-effectiveness was different from other companies. It was piled up to a certain level and stuffed a lot of black technology into it. The cost will naturally not be low, and naturally the price will not affect Xiaomi.
It is impossible for Starry Sky to do everything, for example, on the Internet, with its strong technical capabilities and the world's leading cloud computing and data centers, if it is a search engine, it will naturally be possible.
However, now the competition in the Chinese search engine market is fierce, so I won’t talk about the global giant Google. In addition, Baidu’s new country Bing, which started out in the Chinese market, is now the largest in the Chinese market, but it ranks third in the entire market. Its market value has just dropped to 50 billion yuan, while Google’s market value is 900 billion yuan at this time, which is 18 times that of Baidu; but Baidu’s value is not low. In a market with a simple language, it can only support a company of Baidu’s size, and can only support Baidu’s current business model.
The market will not be bigger, the business model will not be newer, the technology will not be revolutionary, and Baidu's valuation will not have the chance to increase by 10 times.
In this separate search engine market, only a company like Google, which is aimed at 7 billion global users, can produce a sufficiently elegant business model and make large-scale profits without having to post false advertisements on a large scale without having to look ugly.
Although there are black spots among the top ten companies in the world, they definitely agree with most people's moral values. They may be criticized in terms of business methods, but they will definitely not be a business model that will arouse most people's disgust.
Search engines are an extremely mature market. In the Chinese field, Baidu's dozens of competitors have been one after another in the past ten years, but in the end they were almost exhausted by Baidu, and in the end they were only one of Baidu giants, but now Baidu itself is getting worse and worse.
The reason is simple. The Chinese-language market alone is limited, and Google is still alive. With its position as the leader of the market, its technical capabilities are not comparable to those of companies born in a single language market.
Although Bing is not bad, it now relies on the giant Microsoft, based on the Chinese-speaking market and has a certain position in the markets in other languages, but it is not as good as Google and in the separate Chinese-speaking market, it is not as good as Baidu.
Baidu's business model has reached its peak. With the core technologies and business models such as search advertising, even if it is replaced by a company that has put down the only remaining little bit of food and sex, it can only achieve Baidu's size, and it will not be better than Baidu.
If Starry Sky participates in this market, relying on technology and without caring about profitability, it will naturally be better than Baidu. It is not a big problem to surpass Bing. It is even possible to compete with Google.
Starry Sky's technical capabilities are no less than Google's, and it can even be said to be far more than that, but this market is actually shrinking. Why do Starry Sky have to do it again? Just wait for the right time to acquire a company and then rectify it.
Just like Microsoft, it took a lot of effort to finally buy Bing Search in the new country, which cost tens of billions, but how much benefit is it to Microsoft in fact?
The most serious problem now is that information on the Internet is becoming more and more closed, not more and more open.
Weibo content is not as easy to be searched in Baidu as in the previous blog era, because Baidu cuts off Weibo's search traffic.
The content in the WeChat ecosystem cannot be found on Baidu because the stars are not that open.
These two examples happen to be two situations. The first is that the search engine is closed by itself, and the second is that other products are closed by search engines.
No matter which party is the reason, it is making high-quality content form more and more information islands in the closed content ecosystem data ecosystem. Nowadays, if you use search engines, you can naturally find a lot of content, but most of them are owned by search engines? Why does Google build a data center? It is simply because it has seen this trend, video website content websites, etc. Google either acquires or builds itself, but it has always been very focused on content.
The same is true for Baidu. In the early days of the development of the Internet, such as Baidu Knows Baidu Encyclopedia, etc., it was mainly used to supplement the capabilities of search engines and allow users to search for content better. This is a very smart approach. It also established the largest Chinese community at that time, Baidu Tieba. However, this was surpassed by Xingkong. It purchased community websites such as Tianya. After integration, it used music, film, television, literary novels, etc. as a guide, and in just a few years, it surpassed the Tieba that Baidu had built for nearly ten years.
Now, it is the age of traffic, and the purpose of Internet products is to retain traffic itself.
As a search online, search engines think of "big internal search"; if this continues, people are increasingly searching in Google, Baidu, Bing when using search engines.
Considering from the perspective of traffic monetization and its own traffic retention, this is an objective reality approach and is beneficial to the search engine itself. However, in the long run, it may not be a good thing, because the significance of the entire network search itself has gradually blurred the content provider.
This further extends the thinking, is why there are closed and openness?
The core issue behind this is the competition for traffic?
For example, for e-commerce such as Ali, Amazon, and JD.com, the products of large e-commerce companies are actually not open to search engines, and only some small e-commerce platforms are still relying on search engines to attract traffic.
Today's e-commerce platforms, especially large-scale e-commerce platforms, are composed of the underlying architecture of goods and services (such as how products are listed on the shelves, how merchants manage purchases and pay for customer services, etc.), as well as product retrieval and display.
There is a key factor here, which is the ranking right of products. With so many products, which one ranks first, or which one obtains more traffic? For the platform, it is the power and value basis of the platform.
The platform determines how information is distributed. This power of traffic distribution is one of the basis for platform commercialization.
So when facing search engines, e-commerce platforms have begun to be closed after they become bigger, and the power of sorting is in their own hands.
In essence, a large e-commerce platform like Taobao is a vertical search itself; ideally, the distribution of search engines should be determined by the degree of relevance and quality of the content, but the monetization of distribution power is a shortcut to monetization, and this monetization is not only about cash income, but also includes secondary control of traffic.
For example, search engines usually direct traffic to their own similar products. For example, when searching for a certain problem, most of the search engine's own product-related information will appear first. Of course, if you pay more money, it is OK to exceed the search engine's products.
This is actually a technical application of traffic monetization and retention. It increases the number of views and stay time of users in their own system and can generate new monetization points.
Because of this, platforms or search engines have the motivation to monetize with their own distribution power.
Of course, some search engines use this extremely well, which leads to users' disgust and thus leads to a decline in market position.
Judging from the current trend, the phenomenon of information islands on the Internet is becoming more and more significant, but if Xingkong really participates, it will naturally have advantages. This is also one of the occasional proposals in the Group's Strategy Department. These are suppressed by Yang Yi. Just like e-commerce, Xingkong can do it, and there are benefits.
For example, it has brought new competition to this market, which has put everyone in pressure and motivation to improve. Now, searches have to bring their own content ecosystem. Starry Sky is not only better than Baidu in terms of content, but Google is not as good as Starry Sky in most aspects.
Although Bing Search is supported by browsers, etc., and also by Microsoft's system traffic, Microsoft is still far from content and needs to continue to improve it, not at the same level.
In terms of revenue, the overall revenue of Stark Advertising Alliance has exceeded 100 billion this year. In terms of Weibo video live broadcast literature and social software, Stark Advertising intelligent delivery has been very mature. If search engines are added, there will be a new channel.
Search is considered a very high-quality traffic because users' needs have been screened during searching and can be delivered more accurately. However, this requires operators to have a certain management ethics. Search advertisements can know more clearly what users want and make more accurate delivery.
So why are there so many medical advertisements that want to be placed on Baidu? Because the user's goals are very clear and they need to look for a certain disease before searching. At this time, accurate matching is only possible for search engines.
However, this industrial chain was smashed by Yang Yi, and the "hospitals" everywhere turned to other businesses, otherwise they would have to leave China and go to the country of the third world. This is a sad age for doctors.
For Baidu, the direct halving of the market value from a 100 billion yuan is also closely related to the sharp decline in revenue, and the pace of Starry Sky will not stop because of this.
Waiting for Baidu's market value to come a few more waves, then Starry Sky will directly acquire it, which is better than now. Moreover, Yang Yi estimates that the time is not far away.
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Chapter completed!