Market evolution 34 law.doc

 PAGE \* MERGEFORMAT 9 Market evolution ‘34 law’ Lenovo Why fail? April 18, 2001, Lenovo launched FM365 website, then Lenovo’s slogan is - ‘the most red person who could do the most red ad, burning 100 million banknotes a year, three years, made the most red site. ‘Lenovo, relying on its PC in the country account for 1 / 4 of the market power and prestige, go all out to the Internet transformation, directed at three major gateway to the edge of the Net: Sina, Sohu and Netease. Indeed, FM365 red with the most people - Nicholas Tse, made the most red ad. From Beijing to Guangzhou’s streets to the subway from the bus shelter light box, everywhere Lenovo FM365 Pink dropped a bomb. A result, just half a month, FM365 this from the content and form do not have any creative portal even squeezed into the Chinese ICP’s first 15-bit, not even official bodies are obliged to FM365 presented CNNIC ‘best dark horse’ award. Lenovo finally FM365 body burned more than 100 million Chaopiao, but not to 3 years, FM365 has almost been forgotten. Lenovo is an amazing failure. It means that Lenovo’s no longer able to field with the three portals on the Internet contest. And if you believe in ‘34 law’ assumptions, we can assert that the failure of FM365 is almost predestined. This assumption that is this: almost every industry, in the absence of strong government interference in the circumstances, the dominant competitors are not more than three. Think about the automotive industry General Motors, Ford and Daimler - Chrysler; banking United States, the Americas and JP Morgan Chase; fast-food industry, McDonald’s, Burger King and Wendy; mobile communications industry, Nokia, Motorola and Ericsson ( Of course, this third position has recently kept changing). Why so? This is because the naturally occurring competitive forces will in all mature markets to create a kind of continuous structure that is conducive to the most efficient enterprises. If the overheated competition, the custo