Who was the talent introduced in "The Mistakes Jack Ma Made Over the Years"?

One of the most accomplished entrepreneurs within the Chinese business community over the past decade has been Jack Ma. Almost single-handedly, he has changed the e-commerce landscape in China, where today's e-commerce models, such as B2B, B2C, and C2C, are completely different from those in Japan, the United States, South Korea, and Europe, and where total e-commerce sales have now surpassed those in the United States. In that sense, Alibaba, the founder, has accomplished a great deal.

2014 is likely to be the year of Jack Ma, Alibaba is going to be listed in North America, and it is also an important turning point for the 15th anniversary of Alibaba's founding, and Jack Ma has reached the age of knowledge.

The best business model in the world is the country model. What is the state? The state is essentially a violent machine that protects the rights of all citizens. And the state makes its main profit firstly by taxes, which you have to pay every day if you are a citizen, and secondly, it provides a lot of goods that look very cheap. For example, it brings running water to your house, and if you want to use it, you have to pay it; likewise it brings electricity to your house; it builds roads and stations on the land, it builds ferries by the rivers, and it provides a lot of public **** services, such as hospitals and universities. In your day to day life you will firstly pay taxes and secondly you will consume these public **** services and the state gets a lot of money out of it.

Li Beihai, a Tang Dynasty calligrapher, said, "Those who resemble me are common, those who learn from me die." Jack Ma used this quote to comment on his success and experience.

To be successful, a person needs to remain highly alert to failures and constantly learn from the failures of others.

One of the eight mistakes Jack Ma has made over the years: moving his headquarters

There are two points in time in China's corporate world that are very peculiar. One is 1984, in the 1990s, some very important companies for China's manufacturing industry, such as Lenovo, Haier, Vanke, Jianlibao, Nande, Kolon, etc. All were born in 1984, so in China's corporate history, we call 1984 the first year of Chinese companies. The second great moment just happened in the Internet field, that is, between 1998 and 1999. The three kings of the portal era, NetEase, Sohu and Sina, known as the "old three kings," and the BATs that now rule China's Internet -- Baidu, Ali and Tencent -- were all born between March and December 1999," he said.

In 1999, there were two main business models in the Internet space: news portals and search. Jack Ma was the only one of those doing e-commerce. One of Ma's visions when he founded Alibaba was: "Alibaba will become an e-commerce company serving small and medium-sized enterprises in China.

Within 10 months of starting his business in 1999, Jack Ma had secured $25 million in financing, and by the end of 1999, he had set up his international headquarters in the United States, and by early 2000, he had set up his Chinese headquarters in Shanghai.

By mid-2000, Jack Ma was on the cover of Forbes magazine, the first of his kind to appear on the cover of the magazine in a Chinese entrepreneurial context. Ma became famous with this cover.

The reasons for the "Headquarters Crisis" are analyzed from three aspects: timing, location, and people.

Timing: In 2000, the global Internet bubble burst at a significant moment. The most important global Internet company "camp" is the United States of America's Nasdaq, Nasdaq stock index in April 1991 when there are only 500 points, compared with the New York Stock Exchange, is not a particularly important market; to the July 1999 when the breakthrough in 2000 points; to March 9, 2000, when the breakthrough in 5000 points. By March 9, 2000, it had broken through 5,000 points. When the stock index broke through 5000 points, all the newspapers in the world were talking about one thing - a new century was about to begin, and the Internet was about to rule the world. It was at this point in time that Jack Ma raised 25 million dollars. Almost simultaneously, three of China's major news portals - it was the portal era in China as it was in the rest of the world - Sina went public on April 13, 2000, NetEase went public on July 5 of the same year, and a week later, on July 12, Sohu went public. A week later, on July 12, Sohu went public. One portal, one quarter on the NASDAQ. It's a seemingly surging point in time.

But at the same time, something else happened. Starting in the second week of April 2000, the Nasdaq dropped from 5,000 down 40 percent in six months. This was one of the major stock market crashes in the Internet sector. 40% meant that the entire market capitalization of Internet companies in the North American capital markets had evaporated by $8.5 trillion. $8.5 trillion - at that time no country had a GDP greater than that, not even the United States, and today China's GDP is just about the same - all in six months. -- all evaporated in six months. This point in time is a major moment for the global Internet. And the important reason why these Chinese companies survived, including Alibaba, including Tencent, is that they all raised money by the second quarter of 2000; the three major portals raised money by going public, Tencent sold its stake to MIH to raise money, and Alibaba raised $25 million.

Alibaba is moving its international headquarters to the U.S. and its Chinese headquarters to Shanghai at a time when it is having a major stock market crash and "it's snowing heavily", which is the opposite of the overall trend. Operating costs are increasing, and the whole industry is in avalanche crisis - that's why Jack Ma realized he had made a big mistake a year after moving his headquarters.

Li: Shanghai is a city with a very high concentration of two kinds of capital: first, state-owned capital, which up to now has been very powerful, with private companies basically in a state of massive oppression; and second, foreign capital, which is welcomed by some of the world's top 500 companies, the world's big investment banks or banks as Shanghai is the window for China's opening to the outside world. In 2013, Lujiazui has a very proud data: Lujiazui has 27 buildings, each building annual tax is 1 billion yuan, a **** is 27 billion yuan, equivalent to many of China's prefectural-level city's total tax revenue in a year.

There is a natural conflict between a city that likes big capital and an Internet company that must focus on disruption and innovation. So in that sense, Shanghai is a city without Internet basics. Shanghai once had an Internet company Shanda Games, imported a game product "Legend" from South Korea, Shanda became China's largest online game company. But then, all of Shanda's innovations in Shanghai were met with all kinds of resistance, and by 2014, Shanda was ranked fourth or fifth among China's online game companies.

Renhe: Since 1998, the central government has allowed private enterprises to engage in free foreign trade. There is a term "MADE IN CHINA", which appeared in 1999. When these millions of private enterprises in China began to do foreign trade, a problem arose: 99% of these bosses do not know English, and those who want to purchase goods in China, the vast majority of foreign enterprises do not know Chinese. This is when a trading platform is needed. Therefore, the emergence of Alibaba in 1999 is actually in line with the "MADE IN CHINA" trend. In this trend, these millions of private manufacturing, foreign trade enterprises mainly in Zhejiang, Jiangsu and Guangdong. China's entire "MADE IN CHINA" basic disk is in Jiangsu, Zhejiang and Guangdong, so Jack Ma founded Alibaba in 1999 in Hangzhou, more grounded.

The biggest advantage of grassroots entrepreneurship is to "bite the grassroots", and the pursuit of "lofty" is one of the most common mistakes entrepreneurs make.

These years, Ma Yun made eight mistakes two: the acquisition of Yahoo

August 2005, China's Internet industry, there is a very explosive news: Yahoo announced to 1 billion U.S. dollars to buy Alibaba's 35% of the shares, at the same time when the Yahoo China as a dowry to Ma Yun. This was the largest investment in China's Internet at the time, and this record was kept for a long time, until 2011, Jingdong financing to 1.5 billion dollars, this record was broken.

After the Internet bubble burst in 2000, China's Internet growth took a completely different path from that of the United States. China's news portals began to transform, and Chinese companies beat their foreign competitors in almost every area. For example, Sina beat Yahoo in the portal space, NetEase beat Yahoo and Google in the mailbox space, Baidu beat Google in the search space, and in 2003 Alibaba launched a domestic C2C platform called Taobao, and in a year and a half Taobao beat eBAY.

So 2005 was a great year for the Chinese Internet.

That's why 2005 was such a pivotal time for a Chinese Internet company to beat a global Internet company, and that's where one of China's largest investments took place. Yahoo bought 35% of Alibaba's shares for $1 billion, which means that in August 2005, Ali's valuation had reached $2.8 billion, which also means that at this point in time, Ali had actually become the highest valued company in the Chinese Internet sector at that time. Tencent was listed in the month of 2004, when a **** raised 1.438 billion Hong Kong dollars, the total market value of 5.2 billion Hong Kong dollars, which is also the market value of Tencent at that time. When is China's largest news portal - Sina, at that time the market value of how much is it? January 2006, Sina's market value of 1.27 billion U.S. dollars, that is to say, Sina in the first quarter of 2006, its market value is only about half of Alibaba.

Toward the end of 2005, Ma convinced Yang to come to China as soon as possible: "Because China is one of the most populous countries in the world, and e-commerce is very weak, you can put a lot of Yahoo's experience into China." So Yahoo entered China in May 1998, and opened the Chinese "Yahoo" website, which was the first news portal in China, and the concept of Yahoo at that time was "find anything, communicate with everyone". At that time, Yahoo's concept was "find anything, communicate with everyone". "Find anything" is the concept of search, and "communicate with everyone" is the concept of portal, which very clearly pointed out what Yahoo was going to do in China. At that time, Yahoo quickly became the No. 1 Chinese portal site.

Later, Chinese people began to imitate it, imitating Yahoo to do Internet in China. For example, Zhang Chaoyang made Sohu, China's first local news portal. It was the first local news portal in China, and it was a very strong imitation of Yahoo. However, after 1999, with the rise of local news portals such as Sina, NetEase and Sohu, Yahoo was quickly pushed out of the first camp. Firstly, the cost of foreign companies is very high, and secondly, being a news portal in China - news is a regulated industry in China, there are a lot of license issues that can't be solved, and a lot of topics that can't be solved. So Yahoo quickly fell out of favor and slowly moved out.

In 2003, Yahoo bought Zhou Hongyi's "3721," then a Chinese search engine, for $120 million.

What are the reasons for the failure of Jack Ma's integration of Yahoo China? There are about three reasons:

First: the business integration of the loss of focus. Yahoo has a portal, mailbox, search, and IM, and these businesses of Yahoo China need to be integrated with Alibaba internally. But in 2005, Alibaba already had its own mailbox product, strategic search product, and its own IM system, all of which were in place. So how to integrate Alibaba's "biological sons" with Yahoo China's business became a very difficult problem. For a long time, the business integration between the Yahoo and Alibaba teams has not been completed, and it can even be said that they have never found a rallying point.

Second, it's very difficult to integrate Yahoo China's business with Alibaba's business. Yahoo! China has tried many times to develop and transform independently, first located in the news portal, and later focused on search, when the community consumer industry up, some people within Ali went out to start a business, did the word of mouth, Ma also acquired the word of mouth, the word of mouth network and Yahoo bundled together, hoping to be able to form a business module, but later also unsuccessful.

Third, team bonding.

This superficially glamorous merger and acquisition, finally brewed out of the c big bitter fruit:

First: since then, Ma lost control of Alibaba in the sense of equity, 70% of the equity to Masayoshi Sun and Yahoo!

Second: the dowry of the year - Yahoo! ended up being a big chicken scratch for Alibaba Group.

In the world of business, free lunches are often the most expensive!

Three of the eight mistakes that Jack Ma has made over the years: the collective demise of the paratroopers

Before and after 2006, Jack Ma imported a number of international talents from the outside, including Weizhe (CEO of Bianjiu China), Wu Weilun (CFO of Pepsico China), Zeng Ming (professor at the Cheung Kong Graduate School of Business), Xie Wen (CEO of Hexun.com), Cui Renshu (senior vice president of Walmart), Huang Ruo (CFO of EaseUS), and Zhang Zhen (professor at the Cheung Kong Graduate School of Business). (Senior Vice President of Wal-Mart Stores Group), Huang Ruo (CEO of Lotus), Wu Wei (Partner of KPMG Huazhen). This is a group of very good young talent, they have two characteristics: first, the vast majority of them come from the world's top 500, and second, they are not from the Internet company.

These two points indicate that one of the major demands of Jack Ma in recruiting these talents is that, first, he needs senior international talents from the Fortune 500 to help him. Second, he believes that the Internet field, whether it is the United States or Japan, in fact, there is no international-level talent, so we should use other talent from the world's top 500 mature international companies to transform the Internet company, transform Alibaba.

Why these international talents in Alibaba will "collective death"?

The first reason: the cultural exclusion. Alibaba has two very important cultures, the first is called martial arts culture. Another Chinese Internet company, Tencent, also has its own unique culture, that is, to take the English name. The martial arts culture itself is characterized by irony and playfulness, and this kind of warrior culture, which defies all rules, is a heresy for those senior executives from the Fortune 500, so it's very difficult for these people to accept it on a cultural level. The second culture of Alibaba is the culture of inverts. Jack Ma said, the world is positive in everyone's eyes, we want to overturn the world. How can we turn the world upside down? The first way is to be inverted first, because after being inverted, the world becomes different in our eyes. To be inverted means to look at the world upside down.

The second reason: the utilitarian nature of performanceism. In Fortune 500 companies, the appraisal and value evaluation of performanceism is a kind of balanced evaluation, and its requirement is to move forward at an even speed and overcome all the difficulties to reach that destination. But for a company like Alibaba, the performance-based assessment is geometric and non-linear. This kind of performance-based appraisal is very suitable for those entrepreneurial and reckless people. In a company like Alibaba, there is a unique martial arts culture, filled with the atmosphere of "kill the Buddha, see the ghosts to kill the ghosts". Its rules of the game is, you can pass the barrier you are a hero, can not pass the barrier you are a bear do not care where you come from, can not do you should go away. So it's very harsh performance-based and extremely utilitarian, and it's very difficult for executives of large companies that are more suited to uniform growth to adapt to.

The third reason is the brutality of corporate politics. Wherever there are people, there is politics, and in China, one person has no problem, two people can become brothers, three people become a gang, and five people become two teams. That's why there's a popular saying that one Chinese person is a dragon, and a group of Chinese becomes a worm.

Huang Ruo, once vice president of Taobao, is an "airborne troops". She once told a passage to Ma Yun: "You are now Alibaba's president, you face two kinds of people, one is your daughter, you grew up watching her, how to see all comfortable, even if she face acne; we are married to your daughter-in-law, trembling, trying to please the president of the favorite, but the president look at his daughter and look at the daughter-in-law is always two eyes. So you, the great patriarch, will make life difficult for these daughters-in-law if you can't solve this problem well."

These bosses and entrepreneurs of Chinese companies, their first principle of employing people is to employ people with loyalty. But in the West, in many big European and American international companies, the first principle of hiring is to hire for ability. Why is there this difference?

First, although it has been more than 30 years since the reform and opening up, up to now, China's professional manager class is still immature, and there is no way for us to address the possibility of these capable people making mistakes in a systematic way. If there is no way to keep the capable people under control, what should we do? We can only use people with loyalty.

Second, the stage of citizen development and institutional differences. Chinese companies are still in a stage of rapid growth, so it is very risky outreach, and very easy to go wrong. In this case, the element of "loyalty" will be greater than the element of "ability". China is in a period of rapid development, and Chinese companies will grow at a high rate as long as they follow this trend. This is not the case in developed Western countries. First of all, the Western economies are already in a period of stabilization, with the U.S. GDP growing at 1.5% to 2% per year. With this growth becoming homogenized and low-speed, it is important to use people to be able to avoid risks.

Third, the difference between Eastern and Western cultures. There is a difference between Eastern and Western definitions of whether a person can do the job or not, and whether he or she is a good person or not. China has long been imbued with Confucianism, and China has a culture of loyalty and filial piety. And in the Western culture, whether Greek or Roman, all advocate capable people, speak of capable people economy, advocate to let the individual initiative and enthusiasm to get a lot of play.

So, the maturity of the professional manager class, the development stage of the enterprise and the country, as well as the cultural differences between the East and the West, have caused such a difference.

Over the years, Jack Ma has made eight mistakes No. 4: Taobao fake behind the lack of law

Ma began to do Alibaba, is a trading platform, that is, B2B, is a Chinese company and foreign companies to do transactions. Then he did Taobao, which is a consumer-to-consumer transaction, and Tmall, which is a business-to-consumer transaction.

In April 2001, Alibaba faced a very serious integrity crisis. In fact, the Internet shopping thing, is only in the last decade or so in the global development, the Chinese region and the United States region are the world's e-commerce more leading region. With the development of Internet commerce, a series of legal and ethical problems have emerged. Fake goods on Taobao and fraudulent behavior in the B2B market have a very serious problem behind them, and one of the c problems, until today, remains unresolved.

The first question is: merchants selling counterfeit goods, whether the platform is responsible? This is a very serious question, but one that does not exist in the offline world of commodities. Let's say a consumer goes to a store in Wangfujing and buys a gold necklace, only to discover that the necklace is fake. What should he do in this case? He can simply complain against the Wangfujing store. So, is the Wangfujing store liable? According to China's current Consumer Protection Law, Wangfujing Store has to take the first responsibility. So in the offline world, whether it's a shopping mall or a market, if a consumer buys fake goods, then the platform has to take the responsibility. But this is actually a question mark in the Internet world. Until now, there has not been a single legal trial in China that has found a platform to be primarily responsible for a merchant's sale of counterfeit goods. It's fair to say this is an empty shortcoming of Chinese law in this area.

The second question is: Is the platform capable of curbing the sale of counterfeit goods by merchants?

Taobao to curb the prevalence of counterfeits can take at least five approaches:

First, big data. Fighting counterfeiting through big data, which can provide an important technical support for Taobao's fight against fraud and counterfeiting, which is precisely one of the technological advantages of Internet companies.

Second, real-name authentication. You can catch these counterfeiters out by means of real-name authentication.

Third, a blacklist system. If someone sells fake goods on Taobao, and then discovered through big data and real-name authentication, he will be included in Alibaba's blacklist, and his identity will be published, exposed, and not allowed to open a store on Taobao for the rest of his life. Such a blacklisting system has a very strong deterrent effect.

Fourth, the establishment of a lawyer's assistance fund to fight the lawsuit. Alibaba can not engage in a lawyer's assistance fund, such as consumers to fight counterfeit goods lawsuit, he spent 10,000 dollars, then Alibaba also took out 10,000 dollars to help him, with the 20,000 dollars together to fight the lawsuit. This also has the advantage of supporting a large number of conscientious lawyers in China. When more lawsuits are filed, the cost of counterfeiting will increase dramatically for those who are counterfeiting.

Fifth, promote the rule of law in online shopping. When the e-commerce platform slowly becomes the most important consumer platform for the whole society, it is necessary to lose the construction of legalization at the legal level.

These years, Ma Yun made eight mistakes of the fifth: the most successful business model in the past fifteen years

The Taobao model, is the greatest business model created by Chinese companies in the past fifteen years. It is innovative in four ways:

First, it has transformed the kind of business model used by eBAY in the United States. Taobao's entire charging model, customer service model, and ebay is completely different, it is very in line with the Chinese characteristics of an e-commerce model.

Second, it invented a third-party payment system called Alipay. In the U.S. e-commerce system, a credit card-based personal business credit system has been established, and this will be used as a payment system for transactions. Jack Ma's invention of Alipay solved the problem of the credit relationship between consumers and merchants of "first delivery or first payment". Alipay is a very innovative third-party payment system worldwide.

Third, Taobao has become China's most important entrepreneurial playground. By now, the sellers on Taobao together have reached 8 million, and as of the end of 2013, the number of self-employed businessmen in China a**** is about 36 million, which means that roughly 20% of the self-employed businessmen in China are opening stores on Taobao.

Fourth, the Taobao model has revolutionized both traditional manufacturing and traditional services in China over the past 10 years. Almost all of the fast-moving and durable consumer goods that are well behaved in China's regional markets have been affected by the Taobao model. The Taobao model has played a big role in the progress of business in China.

Major Conflicts Between Alibaba and Taobao Sellers

Conflict 1: In May 2006, Alibaba launched the "Recruitment of Wealth and Treasure," a program in which a person who opens a store on Taobao can have his or her store recommended for some prominent web page positions if he or she pays a portion of the fee. The program is very similar to Baidu's bidding system. This model is very similar to the bidding ranking practiced by Baidu. When the program was launched, it was opposed by Taobao sellers. Their reasoning was that when Ma Yun launched Taobao at the end of 2002, he said there would be no fees for five years, but now, only three years later, he has started charging fees in disguise. In the end, the proposal was voted down in a referendum.

Conflict II: October 10, 2011, on this day, Taobao released the "2012 Taobao Mall Merchants Merchants Merchants Renewal and Adjustment of the rules of the announcement", the announcement involves two fee adjustment issues, the first one is the adjustment of the technical service fee, the technical service fee by the original charge of 6,000 yuan/year, was raised to 30,000 yuan -60,000 yuan/year; The second one is the adjustment of the amount of default guarantee for stores, which has been raised from the original $10,000 to $50,000, $100,000 and $150,000 respectively. After the announcement, there was an "October Siege" event. Throughout the month of October, 50,000 Taobao sellers opposed the Taobao announcement through a "revolution" of "fighting violence with violence". For example, Taobao sellers rushed directly to Taobao headquarters in Hangzhou and staged sit-ins and pulled banners in front of the Taobao headquarters. One of the attacks was against Alipay. Taobao users withdrew their Alipay balances directly to their bank cards. This is somewhat similar to a run on the bank that happened. These two attacks disrupted the entire Chinese e-commerce market and created a huge credit crisis for the third-party payment system. Eventually, the Ministry of Commerce stepped in and adjusted the fees before the incident could be calmed.

Model reflection: how to break the big platform in the future?

When Taobao's users reached a certain scale - 8 million Taobao users, equivalent to the total population of the country of Switzerland. Taobao to 2011, 2012, it has been very much like a "country" - Alibaba Group and these merchants stationed in Taobao's relationship, in fact, both the interests of the **** the same body, but also has a ruler and the ruler of the relationship. The relationship. It can be said to have been very similar to the state model. In such a business model consisting of 8 million sellers and hundreds of millions of buyers in a state-like business model, as a ruler and manager, to propose a new system, how to communicate with these sellers, buyers, in fact, is a very important proposition.

First, when a system is introduced, is there a mechanism for democratic consultation? Specifically, in 2006, when the "treasure" program was introduced, and in 2011, when the new rules were introduced, did Taobao release information in advance, and did it set up a mechanism to consult with users? If not, then the sudden release of the system is bound to cause a riot.

Second, how to conduct democratic consultation. In developed Western countries, there is a system called the representative system, and China's system of people's congresses and political consultation is also a representative system. In the absence of a way to negotiate with the 8 million Taobao merchants at the same time, then you can choose some Taobao merchants from the 8 million merchants as a representative, these Taobao representatives need to form an independent organization, according to Western political terminology, can be called Taobao merchants guild. The Taobao Merchants Association will represent the 8 million Taobao merchants, and they will negotiate with Alibaba as the administrator.

The building of any business civilization is ultimately the building of a democracy.

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