The second point is to achieve Pareto least optimal resource allocation perfectly.
Shrimmi had editors in six languages when it had just 100, 000 users.
And advanced to achieve a variety of language search, in addition to English, Japanese and Korean, also including Spanish, Russian, Thai and other small languages.And gathered more than 300 music lovers from around the world…
For the special preference of very few people, how much manpower and material resources should be spent on shrimp rice?
First, an editor who knows six languages. The price of a lover who speaks a small language is not low.
The language of the background of the system needs to keep up, which requires technical personnel, as well as musicians who understand the aesthetics of foreign songs;
And finally all the travel expenses to gather music lovers from around the world…
It can be said that Xiami has precisely realized the Pareto least optimal on the brand project whose marginal effect is decreasing rapidly.
As the saying goes, people silly money more brand play.
But the shrimp at this time, apparently not to such a squandering of funds to the coffee.
Third, failure to grasp risk control at critical moments.
Around 2013, it was the golden age of shrimp rice.
It has 20 million registered members and holds the exclusive rights to many singers such as S.H.E, Mayday and EXO.
At this time, the shrimp has no sense of risk and was knocked down by copyright control.
And not willing to spend money to buy copyright, completely give up the market.
Even if it was later bought by Ma dad, Bingzhe “money really can do whatever you want” crazy hit gold strategy, also can not break the river’s lake has been two the world.
Now the shrimp shut down announcement, they also finally realized that year’s strategic error:
“Inevitably, we have missed some key opportunities along the way.In the acquisition of music copyright content, we failed to well meet the diversified music needs of users, which is our biggest regret.”
From the audience to the allocation of resources to the critical moment of risk control.
Xiami is free to walk every step in the interpretation of the lowest level of the brand segment.
Next, take you to see the higher level of the same industry brand segment, such as netease cloud music.
After witnessing the decline of Xiami, netease Yunyin Music at that time picked up Xiami users and slowly removed its copyrighted music from the shelves. When it had enough funds, it would buy the copyrighted music.