Amazon once used a series of great successes to prove the correctness of its own development strategy, but this does not mean that the development strategies of other companies are not feasible.

In Simon's view, Alice's radical expansion techniques are somewhat similar to the business strategies of some emerging Internet unicorn companies after 2010.

The key is two words: burning money.

This is not a derogatory meaning.

Simon remembers reading an article about shared travel business.

The Internet industry has never lacked ideas.

Before the emergence of travel giants like Uber, many people had already come up with similar project planning. However, most of the plans were hindered by one of the key difficulties, that is, how to get users out of traditional travel habits and use online taxi services.

In the end, everyone just discovered that poverty restricts everyone's imagination.

The sharing giant's solution to this is very simple and crude.

subsidy.

Burning money to subsidize.

It was found that this strategy was actually effective. All Internet companies, whether emerging or old, whether sharing or e-commerce, have begun a new round of subsidy war. For a time, red envelopes are flying everywhere, and the giants have unknowingly harvested a large number of users.

When consumption habits form and subsidies disappear, users can no longer get rid of their dependence on these services.

Simon opened the Internet era ahead of schedule by spared no effort, and fundamentally relied on spending money. In order to promote its own network services, American Online also adopted large-scale subsidy and discount programs.

But I didn't think much about it at that time.

It was Alice's radical expansion strategy that allowed Simon to see the shadow of the money-burning war in later generations.

At this stage, since the funds are sufficient and the conditions in all aspects are complete, it is not impossible to directly spend money to catalyze the e-commerce market to enter a period of rapid expansion, in Simon's view.

During the process of planning the development of the new year at the end of last year, Simon personally decided to pass the expansion plan of Igret's e-commerce business loss of $1 billion in 1995, most of which will be used as product discounts and transportation cost subsidies directly for users.

Online shopping can actually be addictive.

After getting used to it, I can't change it even if I want to.

As long as users form habits, all investments will be repaid exponentially in the future.

After e-commerce, another important software business, as the types of Internet-related software in the past year continued to increase, this year, IE enterprise service fee revenue will also be included. IE enterprise service fee revenue in 1994 reached US$1.99 billion, a year-on-year increase of 145%.

With this item alone, Igret is largely no less than Microsoft, which had a total revenue of US$5.63 billion in the previous fiscal year.

In my memory, Microsoft's later operating system business gradually became marginalized, but it was a seemingly inconspicuous to ordinary people. Office revenue gradually accounted for one-third of the enterprise's revenue, so it can be seen that the strong vitality of application software. Moreover, Office's later strength largely relied on a subscription model that gradually shifted to the cloud.

Igrit's Internet tool software matrix has now achieved the transformation from selling to subscription.

In the past year, in addition to key products such as the Three Musketes of the web page and the picture design software Ygritte Photoshop, the embedded browser playback software Ygritte Flash Player, and the video editing software Ygritte VideoStudio, the Igritte software department has also launched other professional software closely related to Internet services through its own research and development and mergers and acquisitions.

Not only that, in order to avoid other 3D software in the industry, Simon has decided to hand over the 3D modeling and animation software Maya used by Pixar Studios to the Igrit software department for transformation, development and commercial operation. Of course, the functions of the public version will definitely be subject to certain restrictions. Simon's purpose in doing so is to promote the development of 3D games.

With the rapid improvement of basic software and hardware performance, it is now the introductory stage of 3D games.

Compared with animation and special effects, 3D software has a larger market size in the gaming field.

In addition to the software business, the YWS data center business, which is also under the charge of Carol Butz, has also achieved extremely high annual growth of up to 118% in the past year, with revenue reaching US$1.73 billion.

After calculation, the total revenue of just four core items: advertising, e-commerce, software and YWS has reached US$9.52 billion.

Others such as Ystore software store, Steam game store, online game business, solutions and patent licensing, etc., also contributed scattered revenue to US$2.15 billion.

According to comprehensive statistics, in 1994, Igret, which had become a behemoth, had a total annual revenue of US$11.67 billion.

As some media predicted, with annual revenue of 10 billion US dollars, Egret's profit speed has exceeded the speed of spending. Even after a large investment in all aspects, the new technology company, which has been established for only about five years, still achieved a net profit of US$790 million.

For the media and the public, Igret's financial report data only brings shock.

For Microsoft, it is the most direct and strong sense of oppression.
Chapter completed!