Devott Insights: Be Cautious to Choose Direction of Entrepreneurship
Source: Chnsourcing.com.cn View: 281 Date: 2015-07-16

There exists a general panic in internet entrepreneurship that is worry about being target of BAT. When BAT chooses an industry, there must be serious competition in market from different merchants and it will become a situation of “tripartite confrontation” at last. The weak entrepreneurs will vanish. Many examples demonstrate it from primary mobile payment then taxi software and to current online education.

If you choose entrepreneurship, because the “360 industries” born from internet “+" era is so huge, perhaps BAT has not such good appetite. However if you think that BAT has entered into or focused on some industry, you must be careful. Because they have enough capital and resources to rebuild this industry, then become the leaders in industry.

Then someone may ask that how we to choose in order to avoid cutting edge from BAT.

Some entrepreneurship experiences below may bright enlightenment for you.

Lin Tian and his team finished the B round of financing when they were developing electronic anti-lost stick. They argued many times for why to choose this direction and this kind of products. Considering from intelligent door lock, watch to bracelet, they finally decided to do this. His answer was “to avoid the direction covered by giant fire and searchlight”. In his opinions, internet giant must enter into these three markets. 1)Products known by everyone at level of threshold such as watch, bracelet; and the standard in whole industry had been formed by giants. 2) Products with rigid demand for customers to clear at a glance, such as products of car network that must be designed by the giants. 3) Products at low threshold those have huge industrial scale, such as the router, lug plate, which are only pieces of cake for Xiaomi to prepare.

Xianguo devotes to explore the market of mobile reading, Chenchen Qu, vice CEO of Xianguo believes that “Products in future shall help users to select valuable information, from which we have a wide space to develop. The design ability for products and thinks & activity ability from product teams will be the important points of test in future. For this aspect, the giants also have not inherent advantages; therefore, we are at the same starting line no matter the giants have more capital as well as more resources.”

What hopes we can see? They are segmentation of market and professional abilities. “Internet + vertical industries” has become trend of entrepreneurship. Then to select segmentation for specific group in market and to deepen develop can bring perfect customers’ experiences and professional abilities. Therefore, it will not be terrible to face striking from the giants.

This post is a personal or group view of Research and Advisory members and don't necessarily represent Devott's positions, strategies or opinions.

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