Dragon-Slaying Technique: A New Framework for Business Model Analysis

The post presents the "Dragon-Slaying Technique" (Tulong Ji) — a refined business model analysis framework. It argues that any business model can be decomposed into three internal factors (the roots) and three external factors (the amplifiers), enabling companies to quickly diagnose existing models, design innovative ones, and locate key paths of value creation and capture.

Core Elements of the Framework

Internal Factors: The Foundation

• Secret — the company's deepest moat; a unique advantage difficult for competitors to replicate
• Resources — key tangible and intangible assets required to create and deliver value
• Methodology — systematic processes that convert "secrets" and "resources" into value and revenue

External Factors: The Amplifiers

• Position — the company's risk exposure and capital deployment in operations
• Leverage — the art of achieving outsized returns with minimal core investment
• Traffic — the channels through which the company reaches target customers and delivers its value proposition

Comparison with Mainstream Frameworks

| Framework | Core Elements | Strength | |---|---|---| | Dragon-Slaying Technique | 3 internal + 3 external factors | Concise, clear internal/external split, easy to apply | | Business Model Canvas | Nine elements (customer segments, value proposition, etc.) | Comprehensive; suited for startup planning | | Six-Element Model | Positioning, business system, profit model, etc. | Clear structure; suited for strategic analysis |

Distinct Advantages

• Highly concise: reduces complex business models to six core elements for quick understanding and application
• Clear internal/external distinction: separates value-creation internals from value-amplification externals, enabling precise problem diagnosis
• Dynamic diagnostics: functions as a diagnostic tool to rapidly identify bottlenecks
• Innovation-oriented: starts from the "Secret" to systematically construct a business model, encouraging innovative thinking

Case Study: Pinduoduo

Internal analysis:

• Secret: extreme supply chain advantages and a social-fission (viral sharing) model
• Resources: Tencent-ecosystem social network resources and vast user data
• Methodology: group buying, low-price subsidies, social sharing mechanics

External analysis:

• Position: large-scale subsidies early on, moving gradually toward profitability
• Leverage: viral spread through social networks
• Traffic: multi-channel reach via WeChat mini-programs, its app, and offline promotion