According to media reports:

after the collapse of the search engine agents Dongguan South China interconnected largest Chinese south, Shanghai Sinvan Dongguan branch followed by a sudden collapse, but before it happened in Dongguan Golden Triangle science and technology limited company bankruptcy. These three are relatively large network of Companies in Dongguan, there is considerable influence in the local.

as the world financial crisis intensified, many Internet companies have been closed down, newspapers, electronic media is filled with the network company layoffs, the news of the collapse, even pundits predicted that there will be China within 90% years of network companies are facing mergers, acquisitions or even collapse fate. Why are these Internet companies actually so fragile? I think this is closely related to external factors, but also cannot do without the network’s weakness.

a, external factors:

industry is not standardized, serious vicious competition.

1, because more and more people will do more and more, know a little or no knowledge will lead to profit squeeze, getting lower and lower, the 80% network companies are in the state does not make money;

2, online self-help Station, free domain name website, CMS system is no doubt that the increase in the number of sites as the main building of the company to a heavy blow;

3, many Internet companies cheat business owners, playing telephone harassment, resulting in 90% of business owners on the Internet company; discoloration;

4, the economic downturn, many companies have shrunk, save money, the company’s network business is a great challenge.

two, their own factors:

1, capital chain broken, product quality, service is not perfect.

compared to other industries, the network’s threshold is very low, one can even set up a network company, which to some extent exacerbated the network market situation in the melee, causing the industry profits continue to reduce. The company in order to save the cost, quality, service quality of the products will not follow up, product homogenization and growing, so even if some technical level is at the leading position of the enterprise can not think of a way to reduce the cost, increasing the vicious spiral predicament of the network market, so many companies in profit or no profit state.

therefore, when the economic downturn, the capital crunch, VCs have to shrink the front when the advertising business to pull new customers, not to the original customer experience of enterprises "tricks" have turned to his office, many Internet companies have been forced to put up the shutters.

2, profit model is too simple, can not meet the needs of further development of the site.

currently has a large part of the network company has not yet found a reasonable profit model. Although the network operators in many projects, but many projects need to "support", which takes time and effort to develop and build, and many entrepreneurs have rushed in to support the economic strength or other projects.

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