What are the meanings of BATH and G...
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What are the meanings of BATH and GAFA? --Explaining the market capitalization of BATH and the background of rapid growth
BATH is a world-famous IT company group representing China
BATH market capitalization
Market capitalization is a value calculated by multiplying the stock price of a listed company at a certain point in time by the number of issued shares. Since the stock price includes not only the current performance of the company but also the expectation for the future, it can be said that the market capitalization is a quantification of the relative ability of the company.
So what is the market capitalization of BATH? In the world market capitalization ranking as of the end of November 2020, Alibaba and Tencent both have a market capitalization of over $ 700 billion, which is an overwhelming difference from the other two companies. Is attached. The market capitalization of BATH is over $ 1.6 trillion, which shows the size of the company.
What is "GAFA" that tends to be compared with BATH?
BATH is a group of fast-growing Chinese companies and is often compared to GAFA in the United States. GAFA is a major consumer IT company in the United States, and it is called "GAFA" by the acronym like BATH, which is Google, Apple, Facebook, and Amazon. Below is an overview of the four companies.
Google is, needless to say, one of the leading American IT companies. Known for its web search engine, it offers many services on the Internet such as web browsers, map apps, online storage and advertising services, and Google Apps.
Google also provides Android, which is an OS for smartphones. We also manufacture devices such as smart speakers and laptop computers, and the range of products is expanding steadily.
Apple
Apple is also one of the major IT companies in the United States. As of October 2020, it ranks first in the world in terms of market capitalization.
It is well known for electronic devices such as PCs, iPads and iPhones, and for developing its own OS. It is a brand that is loved all over the world because there are many devices that pursue simplicity and it has excellent design and functionality. We also handle our own software and applications, and it is popular if we can use it without worrying about compatibility with the OS.
We are also focusing on cloud services such as iTunes, iCloud, and Apple TV, and are a company that continues to grow.
Facebook is a company that operates the world's largest SNS "Facebook" and "Instagram". Facebook boasts more than 2.2 billion monthly active users worldwide and allows you to interact with people around the world.
Founder Mark Zuckerberg started operations in 2004 while attending Harvard University in the United States.
Amazon
Amazon is a company that handles one of the world's largest online shopping sites. At the time of its founding, it was a book sales site, but now it has expanded the range of products it handles to the point where it is said that there is nothing you can't buy at Amazon.
We are also focusing on the data center business, and we are earning profits by renting out servers and storage.
GAFAM is GAFA + Microsoft
GAFAM is 5 companies including 4 companies of GAFA and Microsoft (Microsoft). The reading is "Garfam".
FAANG is GAFA + Netflix
FAANG is 5 companies including 4 companies of GAFA and Netflix. The reading is "Fang".
Background of BATH's continued growth
BATH continues to make great strides, but there are several reasons for its growth. Here, I will introduce why BATH continues to grow.
"Silicon Valley of Asia", has a base in Shenzhen, a special economic zone
BATH is headquartered in Beijing for Baidu, Zhejiang for Alibaba, and Shenzhen for Tencent and Huawei, but all companies have large bases in Shenzhen, China.
Shenzhen is a region in southern China, and Shenzhen, located in Guangdong Province, China, was established in 1980 as China's first special economic zone. The reason for the designation was that it was a convenient location for trade, with Hong Kong by the sea and just across the sea.
Shenzhen, which has developed steadily around the manufacturing industry, is characterized by being good at not only mass production but also small lot production. When a start-up company tries to create a new product, by responding flexibly to small lots and complicated orders, new products are born steadily and grow to be called "Silicon Valley in Asia". bottom.
Develop unique services and technologies
In Shenzhen, we initially developed products and technologies following other countries, but after being designated as a special economic zone, many large and small companies began to gather and gradually caught up with the world.
Manufacturers from all over the world gather and work hard every day to gradually develop their own services and technologies, which continues to the present day.
Fierce competition among employees
Large companies such as BATH are gathered in Shenzhen, and excellent human resources who have graduated from famous Chinese universities are gathered. The competition among employees is extremely fierce, and we are working hard to come up with good ideas all the time.
The fierce competition between employees in a good way makes it easier to create better services and technologies.
Active exchanges between companies
Three of BATH, Baidu, Alibaba and Tencent, are located in the area of "Software Park", which was developed under the leadership of the Shenzhen City Government. Both are within walking distance, and there is a lot of interaction.
In the software park, there are several cafes with presentation spaces called "startup cafes", and events are actively held. Since events are held day and night, it is easy to communicate and interact outside the company, and it is easy to generate new ideas.
Aiming to transform into a research and development base
Shenzhen has a short history of industrial development compared to big cities such as Shanghai and Beijing. However, we are focusing on recruiting good human resources by focusing on education at Shenzhen University and strengthening alliances with prestigious universities and research institutes in each region.
It is becoming a base for research institutes, such as attracting graduate schools from Beijing University and Tsinghua University and establishing the "Chinese Academy of Sciences Shenzhen Advanced Technology Research Institute" and "National Supercomputer Shenzhen Center".
Increase competitiveness by continuing to take on challenges with an emphasis on speed
When creating a new product, accuracy is important in the Japanese manufacturing industry, so it can take weeks or months to create a prototype. In Shenzhen, speed is more important than accuracy, so it is possible to make a prototype in a few days. With the slogan "Time is money, efficiency is life", we have an environment where you can take on challenges with an emphasis on speed without wasting time.
An environment that makes it easy to accept human resources from other districts
In Shenzhen, people who have moved from other districts will not be marginalized. There is a word "Fan Laile, Shenzhen people", and everyone who comes to Shenzhen is treated as "Shenzhen people". No matter where you live in your school or where you originally lived, the environment in which you are accepted as a Shenzhen person if you are in Shenzhen now is a factor in attracting more people.
An environment that encourages innovation and is tolerant of failure
Shenzhen has the slogan, "Innovation of inspiration, failure to tolerate." It means that you can encourage innovation because you have the true ability, and you can be tolerant of failure. Encouraging innovation and not being strict about failure is the foundation of an environment that encourages competition and encourages new technologies to emerge.
Existence of "10 big slogans" that Shenzhen city holds
The existence of the 10 major slogans is a major reason why new technologies are being created in Shenzhen. There are various slogans, such as those raised in industrial areas and those raised at conferences. All of them are just contents that tell the direction of Shenzhen.
The 10 major slogans of Shenzhen City are expressed in Japanese as follows.
With such a slogan, it is easy to improve the environment for technological innovation throughout Shenzhen.
BATH's human resources ecosystem
In Japan, there are still many companies that have introduced a lifetime employment system that allows them to work until retirement once they get a job, but this is not the case in Shenzhen, where BATH is based. There are also regional characteristics that take on challenges, and human resources are actively coming and going.
Frequent forums and events in Shenzhen
Forums and events in Shenzhen are the catalyst for new companies. At the business plan presentation, which is one of the events, many people from BATH take the stage, which often triggers new businesses.
Even those who are currently working for a company have many opportunities to start a business because they are in Shenzhen, so starting a business rather than working for a long time makes it easier for human resources to flow.
There are many startup cafes in Shenzhen
There are many startup cafes in Shenzhen, and the hurdles for using them are low. Since highly conscious people naturally gather and meet at the startup cafe, it is easy for new ideas to be born, which leads to opportunities for founding. The company is also promoting the use of cafes, such as a coworking space operated by BATH, which makes it easy to actively interact with human resources.
There are many opportunities for people from BATH to meet and co-found
Companies in Shenzhen, including BATH, have a large number of talented people from all over China. Even if you work for a different company in BATH, it is often the case that excellent people meet and collaborate with each other at startup cafes and come up with ideas, resulting in co-founding.
An environment where many innovative companies are likely to be born
In Shenzhen, it's a good idea to take on the challenge. You are tolerant of failure, so you don't have to be afraid of failure. Even if I get a job at a big company like BATH once, I am not particular about staying at the company, so I often change jobs or start a business.
Many people start a business because it is easy to take on new ideas even if they have new ideas, and as a result, more and more innovative companies are being born.
BATH is a corporate group with particularly strong momentum in China. It consists of four companies, Baidu, Alibaba, Tencent, and Huawei, and is growing at a rate approaching that of GAFA in the United States.
A major influence on BATH's growth is the regional pattern of Shenzhen, which has been designated as a special economic zone by the Chinese government. Encouraging reforms and being tolerant of failure, and valuing speed over accuracy, have led to the current development.
The fact that there are many startup cafes in Shenzhen is the reason why there are many personnel exchanges within BATH and co-founding between people from BATH. The cafe has a presentation space, which gives you the opportunity to present your ideas and makes it easier to raise money.
Let's keep an eye on BATH, which continues to innovate.
