Thursday, July 29, 2010

TOM Online had this to find someone to marry



March 2007, TOM Online delisting from Nasdaq after the Hong Kong and then began a large-scale layoffs, and decided to forgo. TOM as Li Ka-shing of Hong Kong businessmen investing in mainland Internet companies to make money initially by SP, SP is now affected by the policy, recession, so many people will forgo layoffs TOM purpose attributed to layoffs through the SP through the winter period. But I believe that TOM Online to delisting from the market, from the delisting to the layoffs, not the SP this causes depression, but the company's management, investment and other aspects because the end result.

TOM Online Success or failure is also the capital of capital

TOM talking about, we first look at the global success of the birth and development of Internet companies. Google is the first two scientists to solve a huge amount of information the Internet, and developed a search technology to find a profit model, after the final grow and eventually become a counterbalance to Microsoft's Internet companies.

Look at China's Baidu, NetEase, Tencent. Robin Li Baidu because of the outstanding leaders and a good profit model; Netease's success because of the Ding's leadership, to do e-mail, then see the online games market, will enter the online games, and is committed to independent research and development, and then start into the portal a success. Tencent in Mr. Ma's leadership to rely on IM chat software, viscous, rapidly into the portal and game, relying on SP and other value-added services with great success.

From the above analysis point of view, an Internet company to be successful must have an excellent leader, and has a unique profit model. The rise of Web2.0 era youtuber, facebook, myspace also has two elements, so that they have been successful. Some may say, you ignore the capital, TOM is indeed a product of pure capital, is the money pile up Li Ka-shing's Internet company, not remarkable founder, there is no unique profit model (the original SP is a good profit model But the only way to make quick money, do not have the unique advantage, is the fruit of the Chinese operator policy), so the companies do not have a chance to see a time when diversification opportunities in the waiver does not know when to give up, because the Li Ka-shing only investors, not operator instead.

TOM Online as in the capital, but also defeated the capital. SP can now make quick money for TOM, Li Ka-shing started to shrink the front, got cold feet and fled, which is characteristic of capital investment, its main purpose is to make money, they do not exist on the corporate feeling, not necessarily a direct throw away money, when, because TOM just a tool, not personally raise their own "child." A great leader is not the soul of the business enterprise is not just rely on professional managers can not achieve great success, the Internet company seems to be an immutable rule. (Wang Lei Lei, and failed, it is not excellent excellent)

Internet companies must diversify localization

On the delisting and to forgo TOM, I have to talk about the Internet company's diversification.

We know that business in order not to put your eggs in one basket to the rapid development of enterprises, usually to diversify, diversify the way they use acquisitions to enter new areas. TOM has also started its diversification, acquisition EBAY into C2C, and skype VOIP calls out the merger. However, the two diversified business has never come a long way, why not?

C2C and the VOIP is a sunrise industry, the Internet, but TOM is no sign of improvement under the operation, which is a wide range of failure, because no good Localization. This leads to a competitive process, can not quickly get users to take away most of Taobao's share. In the process, TOM's capital advantage and did not play a role, because TOM is not the same as the outstanding leader Ma, no one can fully understand the habits of Chinese Internet users manager, failed to develop effective strategies for the Chinese market. Look at Google in China, although Google has a huge financial backing of Google and technical strength, but always under Baidu. Cause or localization is not in place, but Google is under the leadership of Kai-fu Lee's localization strategy in the implementation step by step, and get good results, which were outstanding leaders of Kai-fu Lee the credit.

In more and more Internet companies to move closer to the traditional corporate mode of operation when the company's brand building, corporate strategic positioning, corporate marketing communications become more important. When competitors are busy building the brand, busy time of marketing, TOM is still a hotbed in capital mediocrity. In the absence of outstanding leaders, TOM can not successfully diversified, TOM losses are inevitable.

TOM Online should get married individuals

Although TOM Online news portal to give up, leaving only the sports, entertainment, automotive, and several other channels, other channels will be abandoned. But I believe that TOM Online is still no hope of success in the future worrying.

After all, sports, entertainment, automotive vertical site by doing, and the advantage of other portal stronger than TOM, so the number of channels is not TOM's advantage. TOM Online is the right decision to give up the portal, but we do not see their future. Because TOM Online has lost access to the brand's best period, when the users surfing habits when no longer look to TOM Online, TOM Online will be the trend of decline as one thousand feet of the waterfall as leakage can not reverse.

I personally think, TOM Online's way of merger should be taken, and Hurray, like looking for a partner with vision, his married. TOM, after all, after years of development, but also left some integration of resources. Otherwise, after downsizing TOM Online, still faces a huge profit. Because we decline from TOM Online in addition to the SP who has not see the profit point.







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