Recently, Cheetah CEO Fu Sheng's article "Don't use tactical diligence to cover up strategic laziness" went viral online, helping most companies to clarify the difference between tactics and strategy. NetQin's recent strategic integration and adjustment coincide with the ideas in this article. Tasting the bitter fruit of tactical diligence After NetQin, which started out with mobile security business and gradually faded out of its main business, it quickly expanded into multiple new businesses through investment and mergers and acquisitions in an attempt to establish a new core business. In this way, NetQin acquired many companies with development potential. In NetQin's financial reports, the mobile security business gradually faded out, while the enterprise mobile business, mobile games and entertainment business gradually emerged and became new highlights in NetQin's financial reports. However, NetQin has never found a new development path.
Moreover, NetQin's decentralized strategy was criticized by investors. NetQin's vice president Zhou Bin once said that the multi-line strategy would disperse strength, and this model would make NetQin underestimated by investors. At the same time, NetQin also attracted various criticisms. Some people thought that NetQin was a cover, and some even thought that NetQin had almost become an incubator company. NetQin was deeply trapped in tactics and could not extricate itself, and was obviously lacking in strategy. After Muddy Waters' short selling, NetQin was pushed to the forefront. After suffering the consequences of focusing on tactics and neglecting strategy, NetQin gradually adjusted its direction and proposed the Blueberry Strategy, which reorganized its disorganized business lines into two lines, one for technology and the other for entertainment. After the initial integration, NetQin shifted its focus to the entertainment business line. From NetQin's latest financial report, we can see that the effect is very obvious. NetQin's mobile value-added service revenue increased thanks to the rapid growth of mobile games and the live video streaming business. NetQin is more diligent in strategy NetQin, which has benefited from the focus, has finally turned from tactics to strategy, and even discarded two major pieces, selling two promising businesses. Recently, NetQin not only transferred all of its shares in Feiliu Games to Beijing Jinxin Rongda Investment Management Co., Ltd. for no less than RMB 4 billion, but also agreed to transfer all of its shares in Guoxin Lingtong for US$80 million in cash, facilitating Guoxin management to repurchase the shares.
NetQin officials also said that the two transactions are beneficial to all three parties. NetQin believes that Feiliu Games and Guoxin Lingtong will have better development in the future. NetQin will focus on mobile entertainment at this stage, and will focus on mobile in the long term, maintain innovation, and invest in the future. Some industry insiders predict that after selling the two businesses, NetQin will invest more resources in Xiuse to promote the accelerated development of Xiuse show on the mobile side. Currently, the mobile show market does not have leaders like 9158 and YY like the PC show market. Whoever runs faster may be the first to gain the upper hand in the mobile show market. Fu Sheng mentioned in the article: "When the goal is simple enough, it will be narrow enough. What will happen if it is narrow enough is that after you invest so much, others will have no chance to catch up, because there is no way to surpass it." He Xiaowu, the person in charge of the Xiuse show, also said to the media that they will focus all their energy on the mobile show market, and the development speed will be faster. NetQin's next focus is Xiuse. NetQin has entered a narrow field. If it can gain a foothold and stand out on the mobile side, Xiuse will also be difficult to be surpassed. NetQin has discarded its complicated business lines and got rid of the days of being entangled in tactics. Since the launch of the Blueberry strategy, NetQin's development path has become increasingly clear. NetQin will now focus on the entertainment business line, develop XiuSe, and start to be diligent in strategy, simplifying the complex and focusing more on mobile entertainment.
As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity. |