In a webinar of 2021 Fudan MBA admission events, Professor Luo Pinliang from the Industrial Economics Department, School of Management, Fudan University shared his insight on internet thinking, internet business models and the competition trends.
The logic behind the free-of-charge business model in the internet industry is that, the basic product or service attracts the long-tail market by solving their pain points with low prices or free of charge, then the company makes profits through value-added services.
Professor Luo pointed out that competition in the internet industry is shifting from that of price, technology and service to that of traffic, experience, and scenario. In the long run, the competition will be centered around business model innovation, operating standards and the ecosystem.
