China Goes After Internet Platforms Like Alibaba and Tencent

China Goes After Internet Platforms Like Alibaba and Tencent

China is certainly not happy with some of its platforms: “China announced on Monday that it has handed fines to Alibaba Group and Tencent Holdings. The announcement came after Chinese authorities disclosed that they are probing a deal involving the two companies.” The problem is that fines will not do much since platforms are like living organisms, with compounding capabilities within an organic equilibrium.

Provided the virtuoso circle is active, breaking the loop will be hard. People will use the best available service, and that would make the best even better, drawing more people into the ecosystem. In the Igbo Nation, it is called “osisi na ami ego” [the tree that produces money as the leaves”.

Alibaba and Tencent are running modern business frameworks which include double play.

Yes, provided the chip business has an internal customer (the mobile device unit, the oasis in my strategy), Samsung will continue to commit resources as the oasis has removed most of the risks in investing billions of dollars to build new factories in the chip business. Yes, the mobile device unit (the oasis) makes the chip business better by being a “reliable customer”, irrespective of whatever happens externally. That is the heart of the one oasis and the center of Double Play Strategy in business.

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