Tencent Trend Analysis

Case Analysis and Study of

”TENCENT’S BUSINESS MODEL”

CBI Assignment

Author: Crystal Guo郭晶瑾 2014GA

17-Oct-2014

Executive Summary

The purpose of this report is to analyze the case, summarize the case’s main idea and main issue discussed, also put forward my personal view and suggestion, plans as well as the implementation plans.

The analysis of China’s Internet landscape and E-commerce landscape will be benefit for the understanding of Tencent’s current position in the market, and the analysis of Tencent’s business model is very helpful in knowing the enterprise , how it works and how it gain success in the Internet industry.

The personal view and plans, suggestions will be an overall results of my thoughts.

First of all, the case introduce the background of Internet Business in China.

Internet is a great force in accelerating China’s IT industry’s development and thus fasten the development of the whole Chinese economy. The number of online shoppers are growing very fast.

The first wave of development, Chinese Internet company focus on online service and search engines, they’re busying copying Western companies business model. In the second wave, they develop their own business in their own market and after over 10 years development, in the year 2010, China’s Baidu and Tencent become world top 10 Internet companies. These Chinese Internet companies ,combining social networking, mobile, internet, media and business products under one company, to become a hybrid kingdom. Alibaba, Baidu and Tencent were the representatives of them.

Among them, Tencent also combined the different sets of service like user membership, online communities, online music to implement monetising schemes, and thus generated revenue from Tencent’s massive IM user base.

Then, The case let us know very clearly about the competitive landscape of China’s E-Commerce, by letting us know When Tencent entered the e-commerce market in 2005, Taobao.com and eBay were two...