Not surprisingly, Alibaba and Amazon are in the final round of the world’s biggest companies’ investment value contest. Enterprise that final squad also illustrates the two points, on the one hand, investors prefer the comprehensive enterprise with strong business ability, ali and amazon’s long-term layout of the obvious advantages, ali, for example, according to the data IT orange, alibaba in 2017 to invest 77, involved in electronic commerce, the local life, financial, and other fields; On the other hand, investors prefer technology application companies. Alibaba and Amazon have made innovations in artificial intelligence, cloud computing and big data in the past year. For example, Ali Cloud proposed the concept of industrial AI last year and upgraded ITS ET brain, which is applied to cities, businesses and industries.

It is worth noting that Alibaba beat Amazon to the top spot in the final competition. Judging from alibaba’s practical experience in finance, e-commerce and other fields, it has become a company with perfect combination of technology and business, such as the explosion of new retail energy on November 11 last year, and Ali Cloud’s use of AI technology to empower traditional banking and insurance industries. Under the continuous iteration of technology, different business environments are constantly generating new business values. Such long-term development potential is also the reason why investors are generally optimistic about Alibaba.

So how did Alibaba and Amazon fight their way to the top of the corporate race?

Back in the fierce competition, Alibaba Amazon out

Looking back at the whole process of competition, the purpose of investor selection is also very clear. Alibaba beat novartis, Disney, sapceX, Tesla and Apple in a total of five companies. It can be seen that even in the face of many potential stocks and star companies, investors still have a strong investment confidence in Ali. As far as Apple, spaceX and Tesla are concerned, their scientific and technological strength is beyond doubt, and they have already achieved very mature scientific and technological achievements in their respective fields.

But ali has the B end of the gene may be a key to break through, due to the role of any commercial ecosystem is inseparable from the merchants, and alibaba cultivation in the field of electronic commerce and finance in the past, it has been proven that it has assigned to function, and alibaba in the expansion of globalization also confirms this profoundly, from cloud computing to e-commerce, ali’s service experience is universal, In the future, these capabilities will also play a crucial role.

On the other side of the battle camp, Amazon has pk Tencent, Facebook, Alphabet and other five companies. Even social giants like Facebook and Tencent, as well as Alphabet, Google’s parent company, have reached a global audience, but the key to Amazon’s success may lie in the impact of its known successes, such as in retail and smart audio.

In the end, Alibaba won, and when Alibaba and Amazon stood in front of countless investments, Alibaba’s victory also meant two things. First, investors are profit-seeking. They are more optimistic about the business benefits Alibaba can bring to them. For example, alibaba’s market value rose 96.4% in 2017. Second, investors are more optimistic about alibaba’s growth potential. Alibaba, built on China’s business ecosystem, is clearly capable of greater disruption and creativity.

However, in addition to the results of enterprise PK, this big enterprise investment value competition behind what can be excavated deep enlightenment?

Technology, business “1+1>2” effect

In this race, there are some old-line American giants like Microsoft and Alphabet, who started with technology and ended up creating huge successes in their own time, as well as pushing technology to empower lives. But Microsoft and Alphabet are so tech-savvy that their business acumen sometimes falls short of market perception. Qi lu has said that Microsoft and Alphabet took a wrong turn in their AI efforts, which may have been caused by the desire for technology in their genes rather than the need for it in the market.

However, Alibaba is different from Amazon. They first started in the field of e-commerce, which is a variant of the traditional business model. Therefore, their business thinking is in place and their perception of market demand and consumption trend is more accurate.

In other words, Alibaba and Amazon may be better at creating business models that fit the market. However, this is not enough. In the process of integrating technology and business, the thinking mode of Alibaba and Amazon is also more inclined to the integration of maximum benefits.

For example, after Ali put forward the “five Innovations” in 2016, it began to empower the existing e-commerce and financial systems and gradually explored some ways of its own. And in the future of artificial intelligence industry, realize to implement technology, xiao-ming hu President ali cloud late last year in the proceedings of the cloud is creatively proposed “the AI to bubble”, and try to continue the new AI technology combined with a different business model, created a lot of business efficiency and quality business can draw lessons from the case.

In terms of the integration of AI and finance, Bank of Nanjing has improved the loan process through the ET financial brain of Aliyun. It is reported that 54% of loan applicants can avoid unnecessary face verification and video verification, which not only reduces the disturbance of repeated verification, but also improves the efficiency of loan approval. Obviously, the traditional financial industry still has a lot to improve, and AI may be a more suitable key.

In addition, in industry, AI has also played an amazing industrial upgrading capacity. In order to break through the core problems of manufacturing industry such as the improvement of quality rate and the prediction of failure rate, Ali Cloud ET industrial brain is reported to have been implemented in five industries such as photovoltaic, rubber and energy, and to help Xiexin Photovoltaic, Zhongce rubber, Trina solar energy, Dunan new energy and other large manufacturing enterprises to optimize the profit space.

The continuous innovation of Ali Cloud has also improved its market share. According to the research results of Chinese public cloud IaaS market share in the first half of 2017 released by authoritative research institution IDC, Ali Cloud market share increased by 7 percentage points compared with the end of 2016, expanding to 47.6%.

Amazon also created historic moments when it fused technology and commerce. Amazon’s Ehco line of smart speakers, for example, sold 10 million units worldwide during the Thanksgiving and Christmas shopping seasons. And Amazon is the biggest outburst point that cut market demand and technology confluence effect, make the intelligent household tide of Euramerican lift wild waves again.

And Amazon’s cloud computing has a staggering market share, with 44.2 percent of the IaaS market, worth nearly $10 billion, up from 39.8 percent the year before, according to a Gartner study last year. This not only benefits from its deep understanding of enterprise cloud computing services, but also highlights Amazon’s strong business expansion capabilities.

In general, Alibaba and Amazon have a better mix of technology and commerce than Microsoft and Alphabet, and that ability will give them more room to grow, for example in ari’s “industrial AI” and amazon’s new retail push.

He who sees far goes far

Back to the theme of this year’s corporate investment competition, there is a key word is “worth investing in and holding for 10 years.” It also suggests that Alibaba and Amazon are perfect long-term bets for investors. The concept of perfect goals is based on the values of both companies.

Alibaba and Amazon share similar values, both pursuing long-term vision, not only corporate survival, but also corporate responsibility, corporate goals and so on. Jack Ma once said Alibaba would live 102 years, and Amazon’s Bezos has always written letters to investors expressing the company’s values of taking a long-term view.

The short term is to make fast money and focus on a narrow scope, while the long term is different. The long term investor is very patient and pays particular attention to the future development potential of the company. Alibaba and Amazon’s corporate values and long-term philosophy are undoubtedly quite compatible. Of course, there’s no denying that Alibaba and Amazon have to prove their long-term vision.

Growth seen in the past 18 years, ali, taobao, Tmall, alibaba focuses on people’s consumption items, pay yue yuen to financial instruments, nailing focus on enterprise social, ali can go today, and had set 2 b gene inseparable, Mr Ma also emphasized more than once ali to serve small and medium-sized enterprises. Including the current concept of “industrial AI”, it also releases the potential of AI technology from the perspective of industry, and also serves the role of enterprises in the industry.

Amazon is doing cloud computing and Prime membership for the same reason. Long-term interests of service members are the key, and helping others live longer is also a reflection of long-term vision. It’s also one of the secrets of amazon’s success as a bookseller. In his 2013 letter to shareholders, For example, Bezos said that “impossible tasks” can only be accomplished by taking a long-term view.

In short, it is the values of Alibaba and Amazon that have propelled them to where they are today and to where they are today. In the next 18 years, a long-term vision will be the source of technological innovation, business innovation, and one of the best driving forces for them to move forward.

If alibaba is so similar to Amazon, why did alibaba win?

Ali’s win is also a win for the future

Ali wins, and its current prospects and its own development potential. Profit-seeking investors know this, too.

First of all, under the background of globalization, Alibaba’s market is not limited to China. E-commerce, finance and investment going abroad have been the normal situation of Ali. There is no doubt that there are more opportunities in the global market. Based on its domestic practical experience, Ali has touched the potential opportunities in the global market through a series of actions. For example, Alipay frequently went to the sea in 2017, heading towards those areas where mobile payment is still to be reclaimed under the label of the new four great inventions. In addition, Alibaba has established cooperative relations with many overseas enterprises in cross-border e-commerce and cloud computing. In January 2017, for example, Alibaba and the International Olympic Committee announced a partnership to make Aliyun the global designated cloud service provider for the Olympic Games, which will last until 2028.

Alibaba is like a tiger in its initiative of globalization. With the support of the genes of large enterprises, Its products will reach more land and its ability to integrate technology and business will create more opportunities for itself in such exploration.

Second, technological disruption is expected. On October 11, 2017, Alibaba Dharma Institute was established and announced plans to invest 100 billion yuan in basic research and disruptive technology research and development, so as to reserve core technologies for 2 billion people in the next 20 years and live longer than Ali. Based on this concept, Ali clearly aims to help create a better living environment for mankind.

As the future world is a technological world, Alibaba founded Dharma Institute on the one hand from the human ideal of exploring the unknown, on the other hand also shoulder the task of researching and developing new technologies. On this road of exploration, Ali will catalyze the birth of new technologies through continuous capital and technological investment, which also gives Ali more opportunities to create disruptive technologies. And the future of Ali, in such a long-term layout also appears to be full of vitality.

Under the guidance of innovative business philosophy, the Chinese economy is now on a steady development of the road, and the improvement of the economic environment is constantly inspire the vigor of this land, cross-border electricity outbreak is in line with the ability of Chinese enterprises’ globalization, Shared economic model of also let the world understand China’s economic environment is full of opportunities. In the financial field, the traditional banking industry is also constantly seeking upgrading and reform, and the cross-sea journey of Internet finance is still in progress.

Finally, China’s industrial AI has more room to imagine. Enterprises go abroad on a large scale, customized industrial policies and other phenomena, make China’s economic influence in the world can not be underestimated, so the overseas enterprises of developed countries continue to look for investment opportunities in China. Under a variety of positive factors, China’s economy is going to start energy much more than this, and the future in industry upgrading technology, AI this kind of imaginary space of the new technology is far more, since most of the traditional industry has a huge market, make “AI” industry like ali cloud can find market pain points is quicker, more accurate, AI will enable the manufacturing, auditing and other processes of the industry, and ultimately upgrade the efficiency and benefits of the entire industry.

To sum up, the reason why Alibaba won and was dubbed as “the best investment target of the decade” by investors is closely related to its technical ability, business thinking and long-term goals. In other words, as graham and Buffett’s disciples worship Ali, they may indeed have discovered the true meaning of value investing.

Liu Kuang, meditation on the Internet, wechat official account: Liukuang110