Reinventing the Millennium

Chen Xing was in a very happy mood recently.

According to his description at the company meeting, Internet medical care is like a sharp knife inserted into the chest of his opponent, making Guanhao.com miserable.

In order to open up the market this time, Chen Xing traveled back and forth between Beijing and Shanghai several times to get through the relationship. The main registration network had an honorary title given by the ministry, which was indeed a bit laborious.

Chen Xing feels that the field of online medical pre-diagnosis is not very healthy. If administrative relations are in place, the market in one city immediately belongs to another. Is this fair?

Obviously unfair.

In order to break this unfairness, Chen Xing spent a lot of favors to allow Internet Medical to share Shencheng equally with Guohao.com in principle.

When he first came across this matter, he spent two days visiting the hospitals in Shanghai before returning to the capital. Then he paid attention to the data growth brought about by the subsidy title every day.

The online registration business must rely on computers and the Internet. The surrounding city clusters centered on Shanghai are almost the areas with the best foundation in the country. As long as Internet medical care can open up this central city, the next step can be to spread to the surrounding areas.

Shanghai is the key, and the entire East China region is the ultimate goal.

In particular, Guahao.com has done a lot of publicity and user training in advance.

It can weaken your opponent and strengthen yourself at the same time, so why not?

Chen Xing paid close attention to it for a week and found that there was no movement at all on the registration network. He couldn't help but look down on the young president's methods - if it were him, he would definitely counterattack immediately.

Could it be that Mr. Fang only does boring things like sneaking into other people's homes and selling insurance?

Or maybe there is a disagreement within the registration network?

Chen Xing thought about it like this, and after another week, he finally received the belated response from the other party.

First of all, all hospitals in Shanghai that have Internet medical access will be subsidized uniformly.

Secondly, the subsidy process is accelerated, which means an increase in money expenditures.

Also, it encourages hospitals to increase their number of sources.

Chen Xing didn't know what kind of connections Fang Zhuo had found, or how he got the name of an expert to cause trouble, but the most intuitive reaction was that the hospital's mechanism for adding new number sources was divided into two companies. Comparison of subsidy intensity.

Whichever company subsidizes more, new account sources will be tilted regularly.

If the previous ones were not beyond Chen Xing's expectations, the use of subsidies to allocate account sources shocked him extremely.

What does Guanhao.com want to do?

Does it think it's not burned enough now?

Chen Xing hesitated and chose to follow up on the subsidy process and increase the intensity of subsidies. This time, in order to win over Shanghai, he raised more than 10 million in self-raised and borrowed funds for Internet medical care, and he will never be afraid of competition from the other party.

In the first week, the subsidy amount of Shencheng’s access hospital + the expenditure on machinery and materials was 800,000.

In the second week, the cost of the advance machine was reduced rapidly, and the subsidy amount was 500,000.

In the third week, the subsidy number steadily increased to 700,000.

Just to provide subsidies for the self-registration network, 20% of the funds raised were consumed in less than a month.

Chen Xing held a company meeting to discuss data and competition.

"There are too many people seeing doctors in Shanghai. As long as the number source of the top three hospitals is released, they will be hooked."

"The popular departments in other second-class and third-class hospitals will almost be used up, and non-popular departments can also have about 70% usage every day."

"Even if the proportion of online registration sources is increased, this usage situation will not change. Everyone has a strong adaptability to Internet registration."

Lu Feng, the manager of the marketing department, made a somewhat emotional speech.

Chen Xing frowned and asked: "As long as you dare to subsidize it, you will definitely be able to make up for it?"

Lu Feng smiled and said: "Can we still spend the money? But the effect of spending money is very good, and our growth is quite strong."

"What if we stop subsidy now? Will patients choose us or the registration network?" Chen Xing asked again.

Lu Feng hesitated and said: "The registration network has been around longer than us. If both companies have subsidies, they have more. If there are no subsidies, it should be about the same as now. They are 6 and we are 4."

Chen Xing thought for a while.

Another executive said: "That means their subsidies are larger than ours, and their monthly expenditure burden is heavy."

He hesitated and continued: "Our subsidy this month may be close to 3 million. Excluding the necessary machine purchases, this number is quite astonishing. The main increase lies in the hospital increasing the ratio of number sources."

"As soon as the proportion of signal sources increases, the amount of subsidies will exceed our estimates."

Chen Xing said dissatisfied: "What do you do for food? Why don't you consider the proportion of accounts?"

Several senior executives were aggrieved and unfamiliar with the place. Who would have thought that the hospital could be persuaded? Moreover, it was not just a hospital, but almost all hospitals in Shanghai.

I heard that this was the credit of Mr. Fang. He directly held a symposium and was impassioned, presented certificates, and listed data from other cities. Finally, he persuaded the Health Bureau to agree to slightly improve the hospital. proportion of online number sources.

The most important thing is that the original 3% stock ratio has not changed, and the additional 3% increment has become a subsidy that determines the tilt ratio in market competition.

This forces Internet medical care to follow suit. Otherwise, the subsidies will not be comparable and the other party will directly take most of the increase, which will be even more than before!

Chen Xing expressed his dissatisfaction with this practice on behalf of Internet medical care. As a result, the other party said strangely, "Didn't you start subsidizing it first?"...

He suspected that these words were specially inspired by Fang Zhuo.

But if Chen Xing was asked to follow Fang Zhuo's example and go to the Health Bureau to "make trouble", he wouldn't be able to lose face, so he followed Bibi half-heartedly this month. After all, the other party was really burning money.

"Next month's subsidy should be maintained at around 2 million. This is when the registration network no longer increases the upper limit of single-person subsidy. They have raised it from 50 to 60, and from 60 to 70, almost every week. 10 yuan…”

"If you mention 80, 90, 100 next month... the expenditure will still increase significantly."

“Also, our advertising costs are increasing.”

Chen Xing listened to the report at the meeting, looked at the data and capital expenditures, and frowned deeply. The situation was different from what he imagined.

If this continues, 10 million will only take three or four months.

That is until September in the second half of the year.

Can the first round of financing be secured?

Chen Xing silently made an estimate and felt that there was no big problem. The first round of financing would not be less than 10 million.

"Continue to follow. Guahao.com's cash flow will not be better than ours. If it is brought down, the entire East China belongs to us."

Chen Xing unanimously agreed and decided to continue to increase the amount.

However, within two days, he suddenly heard about a new trend from his competitors—Guahao.com was launched in Yangcheng, using the same subsidy scheme.

Shen Cheng didn't finish the fight here, but he went south to pick up another opponent?

Chen Xing was a little confused about Fang Zhuo's thoughts. At the same time, he began to wonder if his judgment on the registration network's funds was wrong. Such an action meant that the other party was very confident.

Two days later, Chen Xing inquired about the competition in Yangcheng and found that some media had begun to report on the dispute over the online registration business.

——Online registration starts a subsidy war. Is this conducive to the order of emerging markets?

——Jing, Shen, and Peng, which company’s development are you more optimistic about?

——Guahao.com is fighting on two fronts. The founder was interviewed and bluntly said that monetary subsidies are to cultivate users’ usage habits.

Chen Xing felt that Fang Zhuo must have paid the media, not because of the content of the report, but because of the high frequency of being published in newspapers and interviewed.

He was very puzzled and raised a question to people in the company: "Obviously we created the subsidy competition, why does Fang Zhuo feel so excited?"

No one could answer Chen Xing's doubts. He tried to take the role himself, thinking that Fang Zhuo's confidence might still come from the second round of contact with venture capital. Otherwise, how could he show that he didn't care about money?

The period from mid-June to mid-July was a month when the online registration business gradually broke out. Especially in late July, many financial newspapers reported on the fierce competition in this emerging vertical field.

How fierce is the competition?

A reporter has actually experienced it. The tit-for-tat confrontation between the two websites can be seen everywhere in online websites, bus rental advertisements, hospital entrances, and the lobby on the first floor. Internet Medical and Registration Network seem to be eager to kill each other.

In comparison, the second battlefield was much gentler.

Yangcheng’s medical online service has been almost wiped out by the registration network.

The registration network is coming in force, with complete personnel, sufficient funds, good connections, and honor. Once it gets through the administrative level of Yangcheng, it immediately shows why it is the leader in the industry.

The initial subsidy of 50 yuan allowed Medical Online to keep up, but when the price was raised to 100 yuan every Monday, Medical Online's funds immediately couldn't keep up.

Is this something humans do?

It's obviously the capital city to mess with you, why do you cross half of China to come here to mess with us?

Liang Min, who came from Luzhou to start a business in Pengcheng, was very worried. At first, he admired the news about Shencheng with excitement, but he never expected that the important land in Yangcheng had been stolen.

Seeing that the company that had built up his fortune was running low on funds, Liang Min was different from the face-conscious man in Beijing, so he directly called Fang Zhuo.

"Xiao Fang, what do you mean?" Liang Min's tone was gentle.

Fang Zhuo never expected that Liang Min would have the nerve to call him. Medical Online was a complete imitation of the registration website. Old Liang clearly knew him, but he didn't even say hello.

"Teacher Liang, it's just business competition."

Liang Min said in a serious tone: "Do you think your business competition is normal?"

Fang Zhuo asked, "Why is it abnormal?"

Liang Min scolded: "Your people have posted the propaganda poster next door to my company's office!"

Fang Zhuo: "..."

After a slight silence, he said: "Mr. Liang, the person in charge of the Yangcheng matter is a HKUST student. How about I give you the phone number and you talk to her yourself. This is indeed a bit too much."

Liang Min felt that Fang Zhuo was easier to talk to than he thought, so he said directly: "Xiao Fang, your subsidy completely ignores the normal market order. How long can it last?"

"If you have the money, why not take advantage of the blank market? How can subsidies be considered valuable construction?"

"Mr. Liang's lesson is right." Fang Zhuo said calmly, "Then we should use less subsidies and do more long-term user training. I would still like to see everyone working together to contribute to this industry."

The call ends.

Liang Min was a little confused.

But soon, he discovered that the subsidy price in Yangcheng had dropped back, from 100 to the original 50.

Change your mind? Misunderstanding?

Liang Min was surprised and confused. Then he made a second call to Fang Zhuo, trying to persuade him to give up the subsidy war in Yangcheng. However, this time he hung up the phone and there was no other news about the subsidy in Yangcheng.

Yangcheng's subsidy amount has been reduced, and the action process is not as fierce as Shanghai City.

Liang Min urgently contacted investors and received follow-up investment. He gritted his teeth and felt that he could still follow suit. The other party could not continue to subsidize it like this. At the worst, Yangcheng could just do it together with the two companies.

The goals of Medical Online are not high. We need to develop Pengcheng, survive in Yangcheng, and do solid foundation work in Guangdong Province.

Life can still go on.

Liang Min considered whether to withdraw from the Yangcheng market and let the other party burn money, but the opinions of investors prevailed. The important cities in the territory would be beneficial to attracting investment in the future. Even coexistence was better than withdrawing.

Shencheng was beaten to the point of losing its brains, while Guangcheng had a slightly mild slanting wind and drizzle.

For a time, the price subsidy war between the two places was stalemate in this way.

2 million, 3 million, 5 million, 10 million, 15 million.

In less than four months, Guohao.com’s expenditures were close to 20 million yuan, and the company’s books were less than 10 million yuan.

Yu Hong, who was in charge of the work in Yangcheng, felt relatively majestic at first, and once beat her opponent to the point of dying. However, as time passed, she gradually began to feel a little uneasy. The money was really spent so lightly...

Different from what was said at the meeting, she could really see how money was spent while sitting in Yangcheng...

Although it's not as intense as Shanghai, it still costs a lot...

"Xiao Fang, Mr. Fang, Brother Fang, when will this end?" Yu Hong called Fang Zhuo.

"I don't know, I heard that Internet medical care is about to be integrated into the first round." Fang Zhuo's voice on the phone seemed quite hoarse.

Yu Hong was shocked: "Are they going to continue to burn money in Shanghai?"

"The situation is a bit beyond judgment. I don't know how far Chen Xing will persist. I have already started to talk to Sequoia and others about the second round of financing." Fang Zhuo said, "But in this case, direct financing in the second round will lower the cost." According to the valuation, if we don’t get financing, our money can probably last two months.”

Yu Hong swallowed nervously: "Two months?"

"It looks like this on the books. With some support from the bank, it is estimated that it will last two months. Four months is the limit." Fang Zhuo sighed, "Under such circumstances, it is not as easy as imagined to get money from the bank. However, There is also good news.”

"you say."

"The financing partner for Internet medical care is IDG. IDG took 5% of our shares in Yike from CCTV and invested 5 million." Fang Zhuo paused, "Venture investors are not fools, especially new entrants who may not be willing to watch. If we are burning money like this and don’t know when it will stop, I guess there will be changes.”

"What do you think?" Yu Hong asked, "Why don't you just ask the people at IDG?"

"No, I'm not familiar with IDG. If I ask, it will be troublesome if I leak the news. I have already revealed the news about my contact with Sequoia. I am one of my own people here and I am willing to cooperate to put pressure on public opinion. IDG can't do it." Fang Zhuo said in detail.

"Well... take care of yourself, I heard your voice became hoarse." Yu Hong said after being silent for a while.

Fang Zhuo agreed: "Yes, I will inform you of the latest news. Don't worry, we haven't reached the limit yet. The medical online is already here, and it's almost the same with Chen Xing. We have the upper hand."

The phone hangs up.

Fang Zhuo didn't know if Yu Hong was relieved. He was sitting in the smoky office, thinking about whether he should take the initiative to make some changes, such as... go to the regulatory authorities?

Let both sides have a step to get down?

Fang Zhuo pondered that his hand was burned by the cigarette butt, and he shook his arm. He still felt that he didn't want to take the risk. The string was already very tight, and external forces could easily break it.