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  • November 2017
  • Teaching Note
  • HBS Case Collection

Tencent

By: John R. Wells and Gabriel Ellsworth
  • Format:Print
  • | Language:English
  • | Pages:14
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Abstract

Teaching Note for HBS No. 718-426. Tencent had undergone many transformations since it was founded in 1998 as a simple messaging service. In 2017, it was the largest online games provider in China with a wide range of game types, China’s largest social networking service provider with several of the largest social networking applications in the world, and China’s favorite Internet portal. It was challenging Alibaba’s Alipay as the leader in online payments systems, and it had established strategic relationships with many service providers to help exploit new opportunities in online-to-offline (O2O) services and leverage its huge user base in e-commerce and search. However, there was no room for complacency. Competition from the other big local Internet companies such as Baidu and Alibaba was fierce, and there were always thousands of start-ups looking to enter the sector. Founder and CEO Ma Huateng (“Pony” Ma) remarked, “In America, when you bring an idea to market you usually have several months before competition pops up, allowing you to capture significant market share. In China, you can have hundreds of competitors within the first hours of going live. Ideas are not important in China—execution is.”

Keywords

Tencent; Tencent Holdings; Wechat; Social Networking; Social Networks; Gaming; Gaming Industry; Video Games; Computer Games; Mobile Gaming; Portals; Payments; Mobile Payments; O2o; Online-to-offline; E-commerce; Messaging; Subscription Model; Freemium; Mobile App Industry; Smartphone; Pc; Monetization Strategy; Antitrust; Streaming; Cloud Computing; Artificial Intelligence; Big Data; Alibaba; Facebook; Jd.com; Tesla; Bundling; Synergies; Digital Strategy; Imitation; Licensing; Agility; Entry Barriers; Online Platforms; Advertising; Online Advertising; Business Ventures; Acquisition; Mergers And Acquisitions; Business Conglomerates; Business Growth And Maturation; Business Organization; For-profit Firms; Joint Ventures; Restructuring; Communication Technology; Blogs; Interactive Communication; Interpersonal Communication; Entertainment; Film Entertainment; Games, Gaming, And Gambling; Music Entertainment; Investment; Investment Portfolio; Price; Revenue; Geographic Scope; Cross-cultural And Cross-border Issues; Global Strategy; Multinational Firms And Management; Globalized Markets And Industries; Business History; Innovation Strategy; Technological Innovation; Business Or Company Management; Goals And Objectives; Growth And Development Strategy; Product Positioning; Social Marketing; Network Effects; Market Entry And Exit; Market Platforms; Two-sided Platforms; Industry Growth; Monopoly; Media; Distribution Channels; Service Delivery; Organizational Change And Adaptation; Organizational Structure; Public Ownership; Problems And Challenges; Business And Government Relations; Groups And Teams; Networks; Opportunities; Social And Collaborative Networks; Strategy; Adaptation; Business Strategy; Commercialization; Competition; Competitive Advantage; Competitive Strategy; Cooperation; Corporate Strategy; Diversification; Expansion; Horizontal Integration; Vertical Integration; Information Technology; Internet; Mobile Technology; Online Technology; Search Technology; Software; Technology Networks; Technology Platform; Web; Web Sites; Wireless Technology; Value Creation; Emerging Markets; Product Development; Segmentation; Business Units; Communication; Profit; Communications Industry; Entertainment And Recreation Industry; Financial Services Industry; Information Industry; Information Technology Industry; Media And Broadcasting Industry; Motion Pictures And Video Industry; Music Industry; Service Industry; Technology Industry; Telecommunications Industry; Video Game Industry; Web Services Industry; Asia; China; Canton (province, China)

Citation

Wells, John R., and Gabriel Ellsworth. "Tencent." Harvard Business School Teaching Note 718-457, November 2017.
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About The Author

John R. Wells

Strategy
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