Internet Platforms: Natural Monopoly, Growth, and Using One Battle to Fund the Next—Why They Expand Horizontally and Vertically

The Internet’s Pursuit of Monopoly / Network Effects Several Characteristics of Internet Businesses I use Google, Tripadvisor, and Agoda as examples. In the past, in travel information and services, Google was the first layer—search; Tripadvisor was the second—travelers’ reviews and feedback; and online travel agency (OTA) platforms such as Agoda were the third. But given how internet platforms work, Google has kept moving downstream, forcing OTA platforms such as Agoda to keep moving upstream. 1. The internet has a natural tendency toward monopoly. 2. Internet businesses need to keep pursuing high growth. 3. The internet is inherently disruptive. When necessary, internet companies can use one battle to sustain the next, entering new fields without seeking short-term gains. 4. The worsening market environment at the time puts greater pressure on internet companies to generate profits. The result is that all internet companies expand horizontally and extend vertically. In practice, this means “trying to replace any upstream activity they can, and competing for any consumer they can reach.” For internet technology giants, confidence in the soundness of their long-term positioning has already changed their strategic perspective. The question is no longer “What can I do?” but “What should be done?” That is why you see internet giants entering finance, automobiles, healthcare, and other fields. Whether they currently have the capability no longer matters. If the undertaking itself is worthwhile, they will pursue it—even if that means buying companies or recruiting and building an entirely new team. #只有行業壟斷才有真正的定價權 (Only Industry Monopoly Brings Real Pricing Power)