<strong>Chapter 1353 – Business Ecosystem</strong>


    “Old Zhong, you can discuss with your men about these issues and see if it is implementable.” Feng Yu gave Zhong Qingxian a document he wrote.


    Businesses are most concerned about the industry chain. Businesses of different industries are closely rted, forming a chain.


    This is a disadvantage to businesses. If any part of the chain cannot keep up, the whole supply chain will copse.


    For example, the industrial chain of an automobilepany is parts manufacturing, development, and assembly of the automobile, sales, and after-sales services. This is aplete industrial chain.


    If there are problems with the sales stage, other parts of the chain will be affected. The cars cannot be sold. There will be no more after-sales services, and parts manufacturing, development, and assembly of cars will stop.


    That’s why most businesses will have two systems as a contingency n. The upstream and downstream of a business should not have one partner. They must have at least two or more partners. At the same time, their partners must also have more than one partners to prevent any issues from arising.


    This will form a tightly knitted interrtedwork ofpanies.


    This is not a bad model, but it’s hard for businesses to grow rapidly.


    If the businesses in the upstream join forces, they can limit thepany’s growth. The easiest way to prevent such risk is to form your business ecosystem.


    This means you have to do everything yourself.


    Using the automobile industry as an example again, thepany must handle the parts manufacturing, development and assembly, sales, and after-sales services.


    But this is not aplete cycle. It must include the scrapping of vehicles, recycling and processing the steel and using the recycled steel to produce automobile parts.


    Songjiang Motors’s cycle is notpleted, and it’s very hard to form a chain. For example, when steel prices rise, the parts’ cost will also rise, and the selling price of their cars must also rise.


    There are significant impacts from the up and downstream. To prevent thepany from being at the mercy of others, they must control all the rted businesses.


    Songjiang Motors handled the parts manufacturing to the after-sales services. Feng Yu had settled the part for raw materials. The Pr Bear Mining Enterprise has started producing steel, and they have control over the basic material.


    Feng Yu wants all of his current businesses to expand to their up and downstream and form an ecosystem.


    Another advantage of forming a business ecosystem is the rted business will benefit when the value of any one stage increases.


    This forms a win-win situation for allpanies within the chain and reinforces the bonds between them.


    A business ecosystem can let all participants benefit from the industry growth, better position themselves, and increase their adaptiveness.


    Feng Yu owns a lot of businesses. Some had already formed their business ecosystem. For example, Beidacang. They own the agriculturalnd, processing factories, and sales. Their factories also produce animal feed to feed their pigs, chickens, etc. These animals’ waste is used as fertilizers for their farms.


    The chicken waste is also made into fish feed, and the fishes are processed into food or other animals’ feed.


    The agriculture industry ecosystem is easier toplete. The production and sales are also simpler, and such a system can give consumers peace of mind.


    But other industries are moreplicated to form a business ecosystem.


    Feng Yu is trying his best toplete it. For example, he had invested in a Crystalline silicon factory, one of the raw materials for electronicponents. The assembly of electronicponents, system development, product development, sales, and after-sales services are allpleted.


    Feng Yu still does not control the raw crystalline silicon and does not own any electronics recycling nt. That’s why this cycle is notpleted. It can only be considered a business chain and is affected by raw crystalline silicon prices.


    Feng Yu has a partner for crystalline silicon but not for recycling nts. There are only a handful of people doing this in China. He got his men to check out the electronics recycling industry and found that mostpanies are located in two regions. Japan and Taiwan.


    These regions are formerly Asia’s top crystalline silicon industries. After Feng Yu’s raw crystalline silicon nt started production, Wind and Rain crystalline silicon have be the world’s biggest crystalline siliconpany in the world. They supply almost half of the world’s supply.


    They could easily exceed this figure, but they stopped. Anything more than 50% might be considered a monopoly, and they will facewsuits.


    Some Chinese crystalline siliconpanies started to revamp their production lines and technologies after seeing Feng Yu entering this industry. Very soon, China’s crystalline siliconpanies will be supplying more than half of the global demand. Thesepanies’ total production is no where close to Wind and Rain crystalline silicon, and Wind and Rain crystalline silicon has the final say in the crystalline silicon prices!


    The business ecosystem Feng Yu wants to set up the most is the financial industry ecosystem. In his previous life, the only digital financial ecosystem is Ma Yun’s Ant Group. All otherpanies, who tried to imitate their model, cannot bepared to them.


    Ma Yun’spanies’ biggest asset is this Ant Group. Its core is Alipay. Many people specte that if Ant got listed, he would be the World’s Richest Man!


    Many people are puzzled. Most of Alibaba’s shares are owned by foreign investors. Although Ma Yun and his team have the final say in thepany, the Chinese Government should not be supporting them.


    This is because the most profitable business, Alipay, is owned by Ma Yun and his team. Although Alibaba’s other businesses are doing well, those are nothingpared to Alipay and Ant.


    Look at those banks’ assets after they got listed, and you will know how great Ant’s potential is. This is a real digital bank, and it includes all bank services. Most importantly, it has the most valuable transaction history!


    “Manager Feng, I will discuss with the rest. But I think it should not be a problem. Even if we cannot do it ourselves, we can exchange shares to get the controlling stake. This way, we will lower our risks!”


    “Go ahead. If you require Wind and Rain Holdings help, let me know. I will get Kameda Masao to assist you.”