this article comes from where the founder of the network, CEO Zhuang Li in the "business review" (2013 10) on the oral article:

the first step square market size

entrepreneurs before entering the market, first of all need to make a preliminary estimate of the size of the market. The theory of a Internet Co if you want to succeed, the market size will reach at least 50 billion yuan or more, but the Internet Co is unlikely to become the industry’s 100% owners, even if there are 20% very successful, which can expand the market in 10 billion yuan.

so, before doing the "where to go", I completely analyzed the size of the mainland tourism market. According to our estimates, the market size of about 2 trillion, which will have many opportunities to become the industry leader, at the same time, Google’s revenue has shown that the tourism industry is willing to put ads on search engine. Based on the premise of these analysis, we believe that there is a great opportunity to travel search, the market size is large enough.

Second to seize the opportunities brought about by the value chain mutation

after the completion of the market size estimates, entrepreneurs need to analyze the second step in the market opportunities.

generally, there are two major opportunities for startups. One is the value chain mutation, large companies will lose focus in the mutation, and then create a lot of new opportunities for start-up companies. Second, the opportunity comes from the breakdown of the brand, positioning.

for the first case, the value chain mutation sometimes brings many unexpected opportunities. For example, online travel agencies (OTA) is also a product of the value chain pattern mutation. Today, smart, with internet aware consumers actually need a price system, which is a direct information of aviation, hotel group together, for the list of all the products and price platform. So it could be another chance for a change in the value chain.

Third unit economic standards do?

third step is to calculate the unit economy, that is, microcirculation. From where, every microcirculation is each to help our partners out of a room or a ticket, how much is our personnel, market, development, sales and marketing costs, the cycle down, net profit rate of

theory?

according to the empirical estimates, as a new business unit, the economy must be able to reach about 40%, in the actual operation process which can achieve net profit rate of about 25%, otherwise the business model is very difficult to succeed.

square to enter the market is profitable is very important. Because when you set up a company, the worst thing is not to fail after the first half of the year, but to fourth years, found that the business can not earn money, this is the worst

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