The Study Of The Profit Pattern Of Sina

How can websites profit? How many are there good profit patterns? How a website can profit? What is the best profit pattern of a website? As a fresh business which changes with each passing day, the profit patterns of the websites puzzle the operators of the websites and become the core problem of the Internet industry all the time, and it attracts the attention of the netizens all over the world. The services which are provided by the websites are various. If the service can satisfy the netizens, it is valuable and can be the source of the profit of the website. There are many kinds of profit patterns of the website, like the online advertisement revenue, Competitive ranking revenue, revenue from the wireless value added services, and revenue from the online games and so on, which are the most successful profit patterns nowadays. And with the innovation of the Internet, there will be new profit patterns continually.The key to the profit pattern is the value creation activity of a company. The effective value creation activities are the activities which can produce the unique products and the services which can add value to both the users and the company. Whereas, it is not that every companies can perform some activities, which is closely related to the strengths and weaknesses of the company and the exterior chances and threatens. So the profit pattern is the value creation activity which the company constructs and performs to make profit with the integration of the interior resources and the exterior resources. The essences of the profit pattern are the competitive advantages of the company and the maximum of the profit of the company.The Internet industry is the industry which changes fast. After the huge investment, the network companies should establish the profit patterns which are adapt to themselves, then healthily survive and develop.In China, after the ups and downs of many online companies, now there are a few large web portals. They are Sina, NetEase, Sofu, Tencent and Tom online. There are the similarities and differences between them, and as the burgeoning high-tech companies, their profit patterns with the Chinese characteristic become the focus of people's discussion. As a well-known online company, Sina is welcomed by the netizens and it owns the most netizens in China. Whereas after the internet tide of the electronic business, online games, online search and so on, Sina still relies on its excellent news to get the advertisement revenue. And with the increase of its advertisement revenue, its revenue from the wireless value added services decreases quickly, and its other revenue is insignificant to its total revenue. Compared with the other large web portals in China, the profit ability of Sina is low. Whether the profit pattern of Sina can continue on, and whether it can maintain one of the biggest web portals in China, or adds other revenue resources and changes its current profit pattern, becomes the focus of discussion.This paper tries to start with the analysis of the Internet industry, from the respects of the intra-industry rivalry, the potential new entrants, substitute products and services, bargaining power of buyers and bargaining power of suppliers. Then on the basis of the analysis of the competitive advantages and profit patterns of Sina and the other large web portals in China, it analyzes whether Sina can expand other profit patterns to enhance its profit ability compared with the other excellent websites. Then it estimates the possibilities to continue its current profit pattern to rely on the advertisement through the analysis of the external chances and threatens of Sina, the success of Yahoo!, Sina blog and the new development of the Internet.