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SpinDistribute.com Article Directory

The following article was published in our article directory on April 20, 2011.
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The creative destruction of internet business

Article Category: Business

Author Name: xia zihui

Schumpeter economic theory has a few concepts with modern social development and changes in the world widely circulated, particularly on Internet is going from the core of the information times, schumpeter's perspective to the observation and explaining the world is becoming a fashion. Innovation, entrepreneurship, such as creative destruction by schumpeter definition and expounded the noun in high-tech industries in business and for many people, rhyming two-syllable familiar. By comparison, the concept of creative destruction in network industry, worth less to delve into the discussion.

In the theoretical system of schumpeter, creative destruction have the macroscopic and microscopic double meaning. At the macro, schumpeter use think innovation is the development of capitalist society basic power, entrepreneurs is the innovation, and creative destruction conclusively is innovative connotation and results.

Innovation bring new products and services on, start a new market and create new value on the one hand, and replace the old ones product and service, occupied the old market and destroy the old value. New and old war cause economic periodic changes, the financial crisis and the redistribution of production factors. This both creating and destroying phenomenon, is schumpeter called creative destruction. In on microscopic, an industry, an enterprise, and industrial enterprises and also between may exist between the innovation of creative destruction features with activities, these activities determines the industry and the existence of a business waned.

In my opinion, whether to have creative destruction effect is the difference between innovation and improvement, perfect, shortage make-up of common between the creative activity of one of the most important symbol. Creative destruction, the greater the helm of the innovation efforts; The process of creative destruction and faster, the higher the intensity of innovation. In the Internet industry, innovation paradigm enumerate, negligible. Yahoo's portal mode makes the netizens can fast and convenient to get all kinds of information without, and through advertising business to earn income, this is a kind of new value production. Meanwhile, yahoo mode in quite extent destroyed the traditional media and network of vertical website user base and commercial value. Amazon's network marketing mode reduces the merchants with the Internet marketing shopping comprehensive cost and improve the convenience degree of shopping, created a new value. Meanwhile, amazon mode and a considerable degree, in traditional bookstores, destroyed the traditional commodity marketing channel and traditional book publisher user base and the works of commercial value. FACEBOOK led in the real world pattern will WEB2.0 network for the netizen recover, real comprehensive network life create a simple convenient platform, and through the open and precise advertising created new business models to create new value. Meanwhile, FACEBOOK platform and to a certain extent destroyed cuben complex yahoo mode and other closed website service user base and commercial value.

Cases of innovation in China's network industry, although many of these innovation from creative destruction, its strength and view with the above example rather not intensity, contain powerful Chinese characteristics and limitations of the Chinese market.

Tencent with instant messaging Internet basic services as the core, and constantly expand the connotation of instant communication, at the same time expanding aggressively to network services each domain, to a considerable number of netizens brought new value, but also destroyed by suppressing even a single product or service of living but no innovation network company. Baidu Chinese search the Internet basic services as the core, the combined search and BBS, creating a new service, baidu stick directly brought huge flow and social influence, indirect for baidu business model make a significant contribution to the success of. Meanwhile, a large number of independent BBS and BBS type network service suffered a devastating blow. Taobao free open a shop this disruptive innovation, which greatly promoted the development of China's Internet business, at the same time will wipe out EBAY mode.

Keywords: Personalised Notepad Manufacturer, Spiral Bound Notebook Manufacturer

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