Tencent, NetEase cloud music VS an “Innovator’s dilemma” confrontation and redemption
Qian years has a this book had in China of Internet circle prevailed, this this by McKinsey award winner Clayton Christensen completed of innovation who of dilemma, once published on was Award for 20th century most has effects of 20 this commercial books is one of, it analysis has computer, and car, and steel, industry of innovation mode, and proposed has destructive innovation phenomenon on industry of impact and effects, interpretation has those management excellent, performance striking of big enterprise in face innovations technology coming Shi failed to is good face, The subtleties behind ending a disastrous harvest.
When luster in the eyes of the Kodak digital camera fade, when Nokia in the Smartphone could come crashing down, those traditional big businesses began to fidget, began to realize that “disruptive innovation” brought about by the crisis.
NetEase cloud music raised the “Innovator’s dilemma”
In fact, however, the new round of disruptive innovation has begun to sweep across the Internet industry, and comes in the rough, this time, is using the mobile Internet Storm formed by end-market position competition. In this process, people had begun to emerge, there are many other traditional advantage enterprises on pins and needles.
NetEase cloud music is one of the most representative products.
In the book the innovator’s dilemma, has suggested that why those with management experience, human and financial resources to support the enterprise, was unable to cope with disruptive innovations to come? One of the most important reason, is they have some “strategic and commercial profit,” based on the framework and to adapt innovative technologies in business decisions. For this reason, NetEase is also cloud music is able to rapidly rising one a rising star status.
Mobile native music APP
The development trend of mobile Internet and the trend is very strong, even though every Internet product wants to seize the mobile at this crucial time, but reality is always a heap of trouble, “transformation”, “transitions”, “protect the user experience and business model” problems are hampering many products migration from the PC to the mobile terminal.
NetEase cloud music is different, it is the primary music in a mobile APP, it does not migrate user and unified user experience problem, straight cut mobile, which makes the net cloud music has “moved gene” inherent advantages. This for other competing products for is very embarrassing of situation, because they are is PC era of product, in PC end has large of accumulated, impossible abandoned PC end market and rapid March mobile end, because in user migration of process in the, will produced very big of loss cost, but if to sit on their hands, with mobile end market of further expansion, user also will natural loss, so this is NetEase cloud music opponents were dilemma of embarrassing situation.
Differentiate product positioning, to preempt the user first mind
After you have your mobile genes of innate superiority, NetEase cloud music to a deeper level of understanding of product positioning. Joined has large of social elements, launched has “song single” function, and first in music application in the using has LBS technology, and based on big data, and collaborative filter, technology of “personalized recommended”, also has radio anchor, through UGC strategy enhanced products content of outputs and rich sex, this etc series of action, are in told user, this is a music community application, and just a paragraph music play device.
NetEase cloud music for product differentiation position and preempt the user’s “wisdom” taking initiative. User choice is very high price of the mind, but to seize a vacant mental space, but at a minimum cost. You as a player positioned to educate users to abandon his original choice, it is very difficult, but if a musical community used this position to face the user, the user will not produce a potential backlash, will be willing to accept, and once after this brand of first choice, who is hard to move.
To sum up, we can see that NetEase cloud music “mobile native APP” and “music community” two forms of Internet music industry a “disruptive innovation” show, which in the Internet music industry of the original “big brothers”, and ill at ease.
NetEase cloud music launches in April 2013, when after a short period of 1.5 years, accumulated to over 55 million users, and to look at other products, dried shrimp and music for 5 years before they are 20 million registered users, everyday sounds 3 installed capacity to 30 million, such a comparison, even big guys will squirm.
Persecuted by the way cannot be avoided
In the innovator’s dilemma Clayton Christensen, for those facing the predicament of the traditional advantage firms gives the advice to turn things around:
Acquisition of a disruptive innovation, a new company? Purchase of disruptive innovation technology;? Set up a separate subsidiary, disruptive innovations, and opponents fair competition; for NetEase’s music, however, it is not so lucky without opponents to make these three decisions, NetEase music, was a “Chinese-style” crackdown of entanglement.
As the early music player software developed on the PC side, and QQ music must be on the development of high-speed NET cloud music alarmed, gradually was promoted to the most important threat to the product and launched copyright tangled rivalries. The digital music market is huge, and each family occupies a part of copyright disputes the melee occurred Tencent proceedings net music, Tencent, NetEase cloud music counter lawsuits happen. Resources related to the product, this should be from the user’s point of view, collaborate in an open spirit of the Internet, common for a musical experience, because competitiveness should be the product of the product itself, but should not be the exclusive resources.
But in the face of market loss, when challenged, user’s interests have been put aside, open spirit of the Internet are being left behind, Tencent finally zeroed in on the net music, and NetEase cloud music had to return to action against, the parties began to enter a period of copyright entanglements. But NetEase cloud music is in a period of rapid growth, and QQ music in a stable period, music of such entanglement is not conducive to NetEase. NetEase cloud music itself is not willing to focus on the battles, but wants to focus more on the Polish of the product itself. But Tencent, for this war must go all out, because this is the way to grow Tencent currently hold NetEase cloud music, although it appears to have little effect, but cannot sit still.
So we can anticipate, future Tencent and NetEase’s music had a similar struggle, or any other product, tell NetEase cloud growth anyway music can certainly be harassed by other competing products.
Time trial
The innovator’s dilemma is portrayed in the most cruel, those aware of the crisis’s bosses, also has experience of various attempts and efforts, but in the end, mostly watching myself fall. Many times is not a method capable of redemption, but redemption is enterprise’s system and prison, but not every company is daring to make decisions.
Domestic Internet environment now qualitatively changed compared to ten years ago, it is more open, more deeply into every corner of daily life. If monopoly or pulled down, is not able to change a situation, once the users have no choice, so they do not have the right to speak. But now the open Internet environment, users will directly determine the survival and growth through those difficult in future will ultimately become the most powerful endorsement of the product itself.