Rebirth 76: Industrial Internet Empire

As soon as Jeff Bezos finished speaking, a shareholder stood up and said: "Mr. Jeff Bezos, I don't agree with your point of view. Coca-Cola and Pepsi-Cola have also been baptized by fierce price wars, and Amazon's board of directors has not We may tolerate the company's endless burning of money. The U.S. book market share is more than 70 billion U.S. dollars. Plus the audio-visual products market, it is enough to accommodate two book and audio-visual sales companies. As long as we stabilize the current market share, the two parties will be in a The right time to shake hands and make peace..."

"That's right! Cooperation is the only way to win-win! Even if we spend huge sums of money to reopen the track, I don't think it will take long before Amazon will follow suit. The two parties may just change places and continue to start a fierce price war!"

Jeff Bezos explained with a wry smile: "Both books and audio-visual products have fixed pricing, which makes it impossible to form differentiated competition. Both parties can only give out a large number of coupons in real money to attract users, but it is different for other products. Likewise, Products of different brands, formulations, styles, and prices are different. In this case, both parties can form a differentiated competition with their own characteristics, and there is no need to lose money to acquire new users..."

A shareholder wanted to stand up and say something, but Valentin waved his hand to stop him and said, "Okay, stop arguing. To tell you the truth, Cadabra is at a critical moment of life and death!"

"A matter of life and death? How is that possible?"

Valentine looked up at Jeff Bezos and continued: "Just before I came to attend the board meeting today, I got a definite message that Amazon is about to launch a full-category e-commerce platform. They have already cooperated with thousands of companies around the world. After completing the contract, as far as I know, they even used the incredible form of buyout for some products. Unfortunately, as Amazon’s only competitor, we have been kept in the dark for as long as two months. Competitors, I have to take my hat off to Amazon for their courage and courage!”

There was an uproar in the meeting room.

Although all this sounds like fantasy, from the words of Valentine of Sequoia Capital, no one can doubt that Valentine is a god-like existence in the entire Silicon Valley and Wall Street venture capital circles.

"Mr. Jeff Bezos, have you known about Amazon's business intentions for a long time? The reason why you deliberately concealed the information is because you want us to participate in Cadabra's Series B financing without knowing it?" A shareholder was a little angry Unfair questioned.

Jeff Bezos said with a wry smile: "I only learned Amazon's intention to reopen the track the day before yesterday, so I urgently convened a shareholder meeting of Cadabra to discuss countermeasures with everyone. We just used Amazon's newly recruited senior managers and a large number of ordinary people to discuss countermeasures." Clerk, we judge that Amazon may build an online shopping platform that is attractive to college students in the fields of electronic products, toiletries, clothing, bags, stationery, etc. This has not yet been confirmed, so we have not informed you yet!"

"You have signed contracts with nearly a thousand companies, but you know nothing about it? Amazon is Cadabra's biggest competitor. Mr. Jeff Bezos, how can we trust you?"

"Mr. Jeff Bezos, you should be held responsible for this! Such a huge negligence on the part of the management is inexcusable!"

"Cadabra has been completely suppressed by Amazon since the day it was founded. This has a lot to do with the incompetence of the management. All of our business decisions are one step slower than those of our competitors!"

Jeff Bezos ignored the shareholders' questions, but turned to look at Valentine and asked: "Mr. Valentine, can you tell everyone how Amazon concealed the truth and deceived everyone? ? To be honest, we even sent people to Amazon’s job fair, but we didn’t get the exact information..."

Valentin waved his hands and smiled bitterly: "To be honest, I really can't blame Mr. Jeff Bezos for this matter. In order to prevent us from noticing, Amazon did not directly sign a supply contract with the manufacturer, but registered multiple A trading company signs purchasing and sales contracts through these third-party trading companies..."

Everyone was dumbfounded. One shareholder asked in surprise: "Doesn't Amazon have to pay a huge deposit and advance payment? What are they trying to do?"

"This is exactly what I don't understand. Amazon can definitely use this money to acquire its only competitor, so why does it have to go in such a big circle?"

"I also want to know the reason! I would rather spend hundreds of millions to hoard goods and bear the risk of unsalable goods than spend less than $[-] million to acquire competitors..." Jeff Bezos spread his hands and said.

There was a trace of frustration in Valentin's eyes. After thinking for a long time, he said: "Based on my understanding of Yang Mo, there are only two reasons. One is to enjoy the pleasure of defeating his opponent, and the other is that he wants to use fierce price wars and conceal the truth. The business intention is to defeat Cadabra head-on and temporarily stop others from entering e-commerce to grab food!"

In the equity battles between Cisco and Sun, Sequoia Capital repeatedly lost to Zhiyuan International and Andy Ventures. Knowing that there were already similar e-commerce companies, Valentin insisted on becoming an angel investor in Cadabra. In fact, he was holding his breath in his heart, and it was not in line with his usual investment philosophy!

"Mr. Valentine, are you saying that Yang Mo's intention is very obvious, that he wants to establish Amazon's position in the e-commerce field by defeating Cadabra head-on? To this end, he will not hesitate to invest hundreds of millions of dollars in a huge gamble?"

Valentin nodded and said: "You can say the same! At present, he has successfully concealed it from everyone. Amazon will become the only virtual shopping platform for a long time. If e-commerce is finally proven, it will It has become a favorite shopping method for young people. If latecomers want to get a share of the full-fledged Amazon, they must first face a brutal price war. Which start-up company can throw away tens of millions of dollars to fight a price war regardless of the cost? ?”

"Mr. Valentine, what do you think we should do?"

Valentin pondered for a while and then said: "We actually don't have many choices. If we don't continue the blood transfusion, Cadabra can only sit back and wait for death except to seek an overall acquisition by Amazon. Under this situation, it may not be realistic to use equity financing from the capital market." , unless everyone here is willing to participate in Series B financing, then we have only the last option left, which is to use equity pledges to borrow from banks..."