point line body, is a new strategic positioning method.
After these years, many people often come to me to discuss what the company should do next. After much discussion, I slowly discovered that there are many traditional strategic theoretical frameworks that do not adapt to the new environment.
The core of the strategy is positioning, and many people are familiar with it. Positioning the traditional theoretical framework is Porter’s proposed cost leadership, differentiation and niche market competitive strategy. Although this kind of positioning still needs to be considered in the future, in fact, there are more important questions to answer in the Internet age.
So, if someone comes back to me to discuss the next step in the development strategy of the company, the first sentence I often ask is: point, line, face, body, what is your position? It is necessary to clarify this issue first, and then a series of questions can be discussed.
Points, lines, faces, and bodies. Under each positioning, the logic is different. The operational principles, resource allocation methods, and even competition barriers are different. The possible development paths are different. So first define your position in the future networked world, which is the first step in determining the direction of the company’s development.
Face, I mean a platform or an eco-type company in the usual sense. Typical examples are Taobao. The core of the face is the possibility of creating a new model, which is to connect a wide range of players, in other words, at least a market.
The point is a variety of new characters on this face. For example, there are a lot of rich characters on Taobao, from sellers to sellers providing logistics services, model services, software services, and even business services, these roles are different points on Taobao.
Where is the core place? To develop, you need to create opportunities for survival and development. Taobao can have such a big development, the important reason is that so many points have made big money on Taobao. A wave of people earned money on Taobao, which in turn promoted the development of Taobao.
So, back to the beginning of the network era, the most valuable thing is the network effect, so the core of the face is to create network effects>. To create a network effect, it is necessary to build a collaborative network. If it is not a collaborative network, it will not have a network effect, and it will not be able to spawn many new characters. It is not a face. In this sense, it is equivalent to a collaborative network. The important thing about collaborative networks is to empower these points, let them grow, let them develop, and let them grow.
But the face is not directly to the consumer, to provide services to the customer, so there is a very important role, I call it line because it connects the point, face and finally Customer.
A typical line is Taobao sellers. Taobao sellers directly provide products and services to consumers, but this seller is developed on the basis of Taobao. It can develop rapidly and even develop light assets. The important reason is that it makes full use of the face provided by Taobao. A variety of basic services, such as payment, logistics, and later financial and cloud computing services.
But at the same time, it makes full use of the various values provided by Taobao’s multiple points, and quickly integrates the various roles of the traditional so-called supply chain to provide integrated services more efficiently. A typical example of this is the near-net red brand.
The net red brand can develop so well in such a short period of time. The important reason is that there are so many points on Taobao that can be borrowed. Designed by someone who has a special design, promotes people who have promotion, customer service can be outsourced, and production can be outsourced, so he only needs to focus on the ability he is good at, and then use this ability to integrate all related points and services. It can develop rapidly.
The reason why Taobao’s line has been better than the traditional B2C brand in the past few years is that it makes full use of the basic services provided by this side, and integrates various points to bring The support force that comes.
For the line, it is important that you choose which side to develop. You can choose to be a Taobao seller, you can choose to do a micro-business, you can also choose to do a Weibo big V. The line is the transcendence and subversion of traditional B2C services, but this subversion is based on the basis of the face, and the more possibilities created by the points that the face is empowered.
So points, lines, and faces are a structure of symbiosis and common development. This is why we say that a system like Taobao is an ecological system because these three promote each other and Inspire.
The rise of the Amoy brand has brought more traffic to the Taobao brand. The Taobao platform’s traffic has fed more service providers, and the growth of the service provider has brought the next wave of network red rise. . So it is a wave of waves, an expansion process of the entire point line. In the process of face expansion, if one face can have a strong enough foundation, other faces may be derived.
Because Taobao’s payment and credit are so important and so basic, Alipay originated from Taobao, but gradually stepped out of Taobao and became an independent third-party payment platform for the whole society. It has also become a face, supporting countless payment services on this side.
Logistics has also formed a face that is intertwined with Taobao. The first start of cloud computing is to support the business cloud of all Taobao sellers, and then gradually derived into other innovative services.
So this is why Ma Yun began to propose last year that Alibaba is building an Internet-based economy concept, which is intertwined and promotes the upgrading of the entire economy. This is the development of a new Internet-based economy.
From this perspective, we can better understand the Internet era based on network effects, the organization of the entire economy: Face is the core of it, because the face will gradually evolve into a body, face support The point of prosperity, empowerment. The line, based on the capabilities provided by these points and faces, can form a dimensionality reduction on this system of traditional supply chain management.
This is why, from 2013, traditional brands have turned off offline stores a lot, and even this wave has continued to this day. Not long ago, Belle, a very popular women’s shoe brand, sold at a low price. But on the other hand, the Internet brand, which is based on point-to-face, provides new opportunities for these new lines, and the speed of development is very shocking.
For example, Vanke is an independent B2C brand that was very hot more than a decade ago. When the customer was investing at the time, there were more than 30,000 people. I invested so much money, probably less than 2 billion sales during the peak year. But now a good net red, in less than five years, the staff is probably less than 500 people, it is possible that this year’s sales is almost 2 billion. And I have learned about the good offline women’s wear brand. In the past 20 years, the sales volume is about six or seven billion.
Based on the new face, the explosive growth line relies on a complete operating system that is different from the traditional B2C (Business to Customer) system. Their operations are closest to C2B (Customer to Business). ) mode.
Based on the continuous interaction of customers, providing new brands, new communities, new products, and even an increasingly innovative supply chain management system to deliver performance and customer satisfaction The truly accurate service has reached a height that was not previously available. Points, lines, faces, and bodies can help innovative companies understand the real core of future competition. Network effects. How to use network effects determines the foundation of your success.
Back to the beginning of the question, many people came to me to discuss the company’s next development strategy, most people think of the benefits of the face, they want to make a billion-dollar company, but They don’t really understand the core of the face.
The core of the face is actually the network effect, so how to quickly expand the network and make the network synergy is very important, but many people actually do not work hard in this direction.
More scenes are what many people think are the fruits of the face, but it actually only has the ability to point. So sometimes I will suggest a lot of entrepreneurs directly. In fact, it is also a good strategic positioning.
At a precise point in time, finding a suitable face can actually have explosive growth. Don’t underestimate the value of the point. Of course, the test is the human eye, can you seize this opportunity. One big challenge is that the barriers are not too high, so it is important to grasp the timing.
For example, it started in 2009, because the broadband is getting bigger and bigger, the picture becomes easier to read, and everyone starts to develop the habit of watching pictures. There are more beautiful pictures on Taobao, and the value for sales is great. After looking at the picture, the possibility of picking clothes is much higher. Suddenly, the value of the picture skyrocketed, directly bringing a series of opportunities. There are opportunities for a variety of models, photographers, and studios.
I remember very clearly that it was extremely difficult to find a studio in Hangzhou at that time. A photographer could earn millions of dollars a year. Exaggerated probably in 2011 and 2012, there is a model with tens of millions of income, and it is not a model of these famous magazines such as “Rui Li”, a model that does not know where to pop out, all Haining clothing sold She used her in fur.
In this wave, the top ten are probably millions of dollars in revenue. But by 2013, this market has basically declined very badly. Because all the people in China flocked to Hangzhou to make models, the chance of this point was gone, but the next point soon appeared.
So, for doing something, it’s important to seize the opportunity. Some people are sensitive to the market, but he does not have the ability to systematically structure, especially including the ability to continue operations, or the ability of products, he just has scarce resources, or at a specific point in time. The ability needed.
Points are a very good targeting for most small entrepreneurs. The more challenging is the line, the line needs a new style of play, in fact, is a company, an innovative enterprise that evolves as much as possible to C2B. To do the line, on the one hand, you need to understand the opportunities brought about by the face, on the other hand, you must be good at using the opportunity.
I remember very clearly, Sydney, is one of Taobao’s good net red, and talked about a detail. In 2012 and 2013, she shot with a very good professional camera, and the user would feel that the photo quality was particularly good and would like her product very much. But after 2015, she started shooting with the iPhone again, because such photos will be more intimate and the community agree. This is the integrator of the line, he needs to have a deep understanding of the customer, and then continue to integrate different resources.
For different people, because the whole era is a big bang, everyone has their own opportunities, just to find out what your first entry point is.
Points, lines, faces, and bodies operate differently. It’s important to understand the difference in operating models, and you’ll be able to find the entry point that’s best for your development on the first day. This takes into account the characteristics of the opportunity as well as the characteristics of your ability.
This talk introduces a new approach to strategic thinking—points, lines, faces, and bodies.
It is important to seize the opportunity. In addition to the opportunity to seize the opportunity, the line must be good at using the opportunity. The core of the line is to create a network effect. Think about which one you are in order to find your own position in the Internet economy.
The next talk will discuss a very important development model in the next five years – S2B.