Hello everyone，I am Cheng Xiaoyu, CEO of Lushu Technology，I am very happy to be invited by [Everyone is a Product Manager] to share this with you。Let me briefly introduce my experience。I am from Xiangyang, Hubei，Before starting a business，Working as a cross-border M&A consultant in an investment bank in New York，Help foreign capital acquire and divest Asian businesses，Also helps some fund projects and entrepreneurs with M&A and exit。This was previously in the strategy department of a fashion group in New York，Developing Asian market strategies and e-commerce strategies，Joint venture with its brands、Licensing operations and other work。These two experiences，All involve strategic management work，Includes industry analysis and forecasts、Consumer Insights、Competitive Analysis and Strategy、Business valuation and financial forecasting, etc.。

My partners and I founded Lushu Technology at the end of 2014，On the Internet，I am still a newbie，And in terms of strategy，I often meet some Internet entrepreneurs，Want to know but don’t know where to start。Today，I hope to help everyone understand strategic management by sharing some of our experiences in the creation process of the road book，Learn how to find direction，Avoid getting lost。Entrepreneurs have very limited resources，Having fewer detours and pitfalls is half the battle。My sharing will focus on the online travel industry，Because this is the industry I am most familiar with，But I believe，The ideas of starting a business in various industries are the same，Everyone can also use these methodologies，Thinking about your own entrepreneurial project。

I hope that everyone here today，Those who want to start a business are welcome，Already starting a business，We need to think carefully about several questions。We all know that starting a business is not simple，Things I can do if I am happy，Because once we 188bet Online Sports Betting and Casino embark on this road，will be responsible for the career development and ideals of a team。

The topic shared today is how to find direction under the monopoly structure of giants。First of all, I will start with the market environment of Internet tourism，Take everyone to analyze different monopoly environments，What does it mean for new entrepreneurs，How to survive under giants、Seeking development。Then，Will use MPP principles as a framework，Teach everyone to analyze whether the entry point you choose is appropriate from the perspective of an investor。After having an idea for starting a business，After finding the entry point，How to establish and maintain a sense of direction，Avoid detours？This is the third topic I shared。Last，Share it with everyone，How cross-border entrepreneurs can leverage their strengths and avoid weaknesses in starting a business。

188bet app download

What business are we in?

As a pseudo-academic master，I went to five business schools。The sentence that impressed me most is: What business are we in? For example, Disneyland，Are they selling tickets？Actually, what I’m selling is a dream、A pleasant experience。And the concert，In fact, it is a rental business，Limited seats for rent。For online travel，Some platforms we often see cannot escape these three major modes:

1) Community: Like Ant Nest、QIYOU，It is community mode，Via UGC，Via UGC，Write travel notes through everyone、Share travel，Analyze some essence from the content，Influence users’ decision-making through content。Such a website is for travel inspiration，To stimulate everyone to go out and play，Looks fun，But making money is also a relatively difficult model。Because the early accumulation is very important，This period usually lasts 5~10 years。

2) Tools: Tools assist everyone in making decisions，Improve everyone’s decision-making efficiency， Tools like itinerary assistant，Evernote，Help us remember better，As well as calendar software and financial software we often use。Travel online tools began to explode in 2014，For example, if you want to make a trip，Need to browse dozens of websites，View hundreds of articles，The information you want may not be found。So itinerary planning tools are to help users better find the corresponding information，From the inspiration stage to the specific itinerary。Our "Lushu Technology" is creating products that are also tools，Will be mentioned again later。188bet Online Sports Betting and Casino Many entrepreneurial companies have emerged in the tool field，For example, the familiar one: Fei Changzhun、Aviation Butler、Hanglv Zongheng, etc.。Tool products，What we sell is efficiency。

3) E-commerce: All the big names in tourism are in this field。One advantage of e-commerce is direct contact with transactions，Easy to form a large volume。There have been a large number of entrepreneurs in recent years，In segmented groups or certain topics、New e-commerce platforms established in some destinations，Attempting to cover vertical areas that the giants have not yet been able to cover。

But it is difficult for start-up companies to seize a niche area to do e-commerce，Defeat the existing large platforms。Because tourism is a low-frequency behavior，A person may only travel once or twice a year，The nature of this low-frequency decision-making makes it difficult for users to form loyalty to the brand，Every decision is a new decision，The cost of activating old customers is even close to the cost of acquiring new customers。

Everyone take a look at this picture，After the price war in 2013 and 2014，The online travel industry is gradually shifting from monopolistic competition to oligopoly competition。In 2015, Ctrip acquired eLong，Integrated through Baidu and Qunar，The online travel industry has basically entered a complete monopoly situation。

What does monopoly mean to entrepreneurs?

The first is the threshold for entry，Are there any opportunities for new entrants？There is also traffic monopoly，Customer acquisition cost has become higher。The giants have formed economies of scale，Startup companies do not have cost advantages。Customer acquisition cost is higher than that of giants，Supply chain costs are also higher than those of giants，How do entrepreneurs fight against giants？I will make a profit，Can I earn less？But，Users have been spoiled and accustomed to low prices，The gross profit margin in this industry is extremely low。The gross profit of a large number of online travel industries has been zero or even negative。Another one is that the loyalty of online travel users is very low，Which one is cheaper。So we have seen many online travel startups collapse in recent months，Not because there is no income，But no profit，Can only survive by VC capital blood transfusion。

Think differently，Is the tourism industry suitable for the VC model？VC investment company，I hope to invest in a future that can grow hundreds of times、Thousands of times the business。188bet sports betting app download From an investor’s perspective，Look at online travel，Will it be judged that it will become a company as big as Ctrip？Can it subvert the old giants like Ctrip？After the industry consolidation in the past two years，The industry structure has basically been finalized，Few people think that now，Then he will switch to other industries。

Whether it’s a ticket seller or a hotel seller，In fact, what you sell is not the air tickets and hotels themselves，But service。From an entrepreneur’s perspective，Just think about why your service is better than others？Why you are a trustworthy brand？

When will there be opportunities for new companies to emerge?

It is when an industry is standardized to a certain extent，New personalized needs appear in the market。For example, when I went out to play before, I always stayed in hotels，Now Airbnb appears，The pattern of the industry has changed，The supply and demand relationship in the market has changed。Change your perspective，There are still plenty of opportunities for entrepreneurs。The major giants are in a state of truce，Now is actually a good time for startups to develop。

Online travel entrepreneurship is a big pitfall，How to avoid various risks in this industry。The following are the points I summarized:

1) Go to the back end of the industrial chain。Online travel industry，Micro innovation is not enough。For example, if you make a software，You can see the surrounding scenery when booking a room，Just do this one，Is this enough?？In fact, it’s not possible，Ctrip recently launched such a function。The people who produce products on the back end cannot see the users，For example, a diving school in Palau，It cannot see its potential consumers，Need to go through intermediate links，In order to be connected together。Because of this inefficient way，This also gave rise to supply-side reforms。

2) Rural areas surround cities，Enhance landing capabilities，Find traffic offline。Large online traffic is monopolized，But offline traffic will be cheaper than online traffic。For example, some places in Sichuan，Pitch a tent in a place with high traffic on weekends，Let the elders and aunties in the community become their sales staff，This is a very innovative form。

3) Discover new trends，Create new value。Only when there is a gap in the industry，Only new companies have a chance to survive。If you see a new trend earlier than others，Large companies may not be ready yet，Then you must seize this opportunity。

188bet Online Sports Betting and Casino Above，To sum it up, it can be summed up in 6 words: [deep cultivation] [thick accumulation] [thin hair]。

Take the Road Book as an example，How do we analyze the market and judge the situation。

First，Customized tours and personalization are the major trends in the future tourism industry。There will be a crisis in the tourism industry every few years，2012，Singapore, Malaysia and Thailand group tours are developing to long haul destinations such as Europe and the United States， Free travel became a trend in 2013 and 2014，Customized tours will start in 2015 and 2016，From the perspective of personalized needs。Also，Just go back，Enter route production，Affects supply-side efficiency。The road book actually goes deep into the production process of the route，Provide consumers with an intelligent line。Also, 80% of travel activities are offline，The online penetration rate is still very low。So we have to break through offline，Focus on serving offline travel agencies，Complementary advantages。

Is your entry point really appropriate?

For startups，Choosing a good direction is the first step，The more important thing is to choose a specific enough entry point。Because resources are limited，Startup companies must focus on one point，Only with the possibility of success。Then，How to choose this entry point？I want to share a PMP principle with you today。

As entrepreneurs, we all love our ideas，Love your own child。But as an outsider，How do investors analyze entrepreneurial teams and projects？Many institutions in the United States rely on this PMP model。

People: Why should we do it？(Team ability，Cultural values)

Market: What value is created for the industry？(Industry Situation，Supply and demand relationship)

Product: Why this product？What value have we created for the market？(user pain points，Product advantages)

Give us our own example，Road book is a tool product，2B or 2C? In the end we chose the B2B form，Lushu’s user base is mainly offline companies。Because a large amount of content and resources in the tourism industry are still offline，What we have to do is integrate offline resources to help them become Internetized。

Startup company，How to formulate strategic direction？Traditional enterprises will use the model on the left，However, this model is likely to be a mere formality for startups and cannot really be of guiding significance。I recommend to everyone the golden circle of entrepreneurship on the right，This is a 188bet sports betting app download principle that all entrepreneurs can refer to。How do the products we make make our customers feel?？

Just like Steve Jobs said，"The first thing we ask is what do we want people to feel.” To create such a product，Subvert the idea of ​​​​starting from products，Think the other way round，What kind of products do users like？

Take the road book as an example，Lushu is a professional travel itinerary editing platform。But people will think this has nothing to do with me，I am not from a travel agency。Then let’s talk about Lu Shu’s original intention，What is it？Our why is that everyone is a travel designer，We hope in the next five to ten years，Let everyone see the world with their own way of life。

how，The most difficult part of the customized tourism industry is how to achieve scale，Because if you want to personalize, you cannot mass-produce the route like the Minions。But what we have to do is use technology to improve the efficiency of customizers，Use technology to improve the efficiency of customized tours，Only in this way can a virtuous cycle of the customized travel market be truly realized。

what，Traditional route planning uses word、Use tools like excel to do it，Many things are paper-based and inefficient。What Nalu Shu wants to do is to be beautiful、Uniform style，The customizer can fine-tune it according to the user’s needs。

The cases analyzed today are all summarized from my own entrepreneurial experience，I also hope that there will be stones from other mountains，Can help everyone increase their understanding of strategic thinking，Thank you！

*Author of this article: Cheng Xiaoyu (personal WeChat ID: xiaoyuchristine)，Founder and CEO of Lushu Technology，Expert Author。