Chapter 29 Business Model
After the Luojia Forum ended, Lin Jia couldn't help sighing on the way:
"Lei Jun is so experienced, he easily took advantage of the popularity. The question that invited you to go over seemed to have been discussed in advance between him and the host.

He responded calmly to the "Flowers for Genius Young People" project that was recently popular on the Internet.

It sounded like he didn't say anything in his interview, and the outside world automatically said what he wanted to say.

When there were problems with the content, he came out and said that his original words were not what he meant. "

Born into a merchant family, Lin Jia has met many bigwigs, including those working in the Internet industry. Lei Jun is definitely the most marketing-savvy bigwig she has ever met.

Lin Jia had thought so before, and this time it only deepened this impression.

Chen Yuanguang didn't react: "Did he mean what you said?"

Lin Jia knew that Chen Yuanguang was slow in this regard, but he didn’t expect him to be so slow: “Of course there is. Since Huawei launched the P20 series last year, Huawei’s rapid rise in the smartphone market has marked the entry of the smartphone market into a more intense and white-hot stage.

A large number of small players are on the verge of survival or have already gone bankrupt. Huawei is attacking Xiaomi's base market by relying on technological innovation and the help of American.

Among the four major domestic manufacturers HMOV that have emerged in the past two years, OPPO and vivo both use offline channels. They do not focus on cost-effectiveness, nor do they compete for Internet influence. The overlap between their target users and Xiaomi is very low.

Huawei originally used offline channels, from the earliest cooperation with operators to later building its own channels. After the P20 last year, Huawei's growth in Internet channels has been very rapid. The sub-brand Honor it launched is specifically designed to match the configuration of Xiaomi's flagship phone, taking the cost-effective route.

This is also why Xiaomi’s stock price has been falling since the second half of last year, because Huawei has caused a serious impact on Xiaomi.

Lei Jun needs to try every possible means to resist Hua Wei's attack. He will not let go of any opportunity in the public opinion field, just like today he responded to Hua Wei's genius youth plan by recruiting you as a topic.

This is a self-help method used by a top marketing master. Of course, for him, this is just a trivial improvisation. The Internet will wait and see what happens next. "Lin Jia talked freely.

Chen Yuanguang roughly understood what Lin Jia meant, and asked, "What if Xiaomi can't hold on, and I start my own business and ask Mr. Lei for investment, will he have a tight cash flow?"

Lin Jia first retorted: "If you want to start a business, come to me directly and I will invest in you. I can make the decision for an amount within 20 million. If it's 50 million, I can find a way to do it. If it's higher, you may need to talk to the old man yourself."

Then he explained: "What are you thinking about? Although Lei Jun is the founder and helmsman of Xiaomi, Xiaomi's failure does not mean that he is not good enough. Xiaomi's performance in Hong Kong stocks has been very poor this year, and it has continued to fall, but it has not affected his personal assets which continue to rise.

In addition to Xiaomi, he has made many investments, and the success rate of these investments is very high, almost at the same level as the most powerful venture capital firms I know of.

If you plan to start a technology-based business in the future, it is a good idea to find him. With Lei Jun's endorsement, subsequent financing will be much easier."

Chen Yuanguang thought about learning the acceleration technology and felt that if he took the direct sales route, he would be able to break even quickly and would not need much follow-up financing.

This technology is too sensitive, so Chen Yuanguang wanted to discuss it with Lin Jia after returning home.

And he was quite cautious: "If there is a technology that can help people learn faster.

For example, it took you about 500 minutes to memorize 500 words before, and you achieved instant memory. After using this technology to stimulate the cortex related to brain and memory, it only takes you five minutes to memorize words, and the memory lasts longer. If you are a student of science and engineering, this technology can improve their logical and calculation abilities. How do you think this technology should be used in commercial operations?
While doing computational chemistry, I had some ideas about this area, and I plan to focus on this technology during my doctoral career at MIT.”

After returning home and seeing no one around, Chen Yuanguang discussed with Lin Jia the ideas he had thought of during the interview today.

Chen Yuanguang felt that he was not sensitive to business and that he was involved in too many secrets. The subsequent business operations would most likely depend on Lin Jia.

For Lin Jia, it was also beneficial for her to prove her ability before entering the family system.

Lin Jia's eyes lit up after hearing this: "This technology is worth at least 100 billion.

However, before we realize the potential, we must first solve several problems. One is clinical safety verification and effectiveness verification, which involves a large number of clinical trials and directly stimulates the cerebral cortex. The cost will be particularly high when it comes to real-person clinical trials.

Therefore, the initial investment will be huge. You need to verify the feasibility first, and then attract investment. The experimental costs plus subsequent patent registration and clinical licensing will cost at least 10 billion yuan.

This is just for some countries. If you want to obtain clinical approval from Europe and the United States, the money will at least double.

The initial investment is too huge. It is right to find Lei Jun. He is the only one who can come up with the money, or he can help you find someone who can come up with the money.

After completing the above tasks, it is the question of business model. There are many types, such as selling equipment and maintenance services alone. The advantage of this is that the company is relatively simple and easier to manage.

In addition, as a monopoly business, it will be a top-level cash flow business, just like high-precision equipment, there are only one or two companies doing the best.

The downside is that you can only earn a small portion.

There are too many parents and individuals around the world who have this demand to improve learning speed. If you only make money from equipment, the bulk of the profits will be taken away by the middlemen.

The second is to produce and sell by yourself. You set up your own organization to sell services, especially services that increase learning speed. This involves site selection, venue, personnel, marketing, etc. After the technology is launched, there will definitely be people who deliberately cause trouble. If you operate it yourself, there will be a lot of lawsuits and disturbances.

Profits are made, but there are more things to worry about and the management difficulty index increases.

Of course, we can also look for an intermediate model, which is the franchise model, similar to selling equipment to franchisees, and then we become the makers of industry rules.

For example, we will determine how much money a service costs and how much we will take from it. We eat the meat and give the franchisees some soup, while they are responsible for the trivial matters.

There are basically three types, and they all remain essentially the same.

But are you sure you can come up with this technology?"

Lin Jia felt that he trusted Chen Yuanguang too much. The technology he proposed was so sci-fi, and he even helped him analyze the business model.

(End of this chapter)