Tencent’s Business Model and Business Strategy

Abstract

In the competitive practice, a set of practical and unique corporate business models is the key to superiority in the market competition. Nevertheless, since the different perspectives of the researchers, resulting in the lack of unified understanding of the basic concept, structural system, and theoretical scope of business models, the research on enterprise business models has not formed a unified theoretical framework yet. Based on that, to better guide Chinese enterprises in successful enterprise business models, this paper explores the strategies for the design and innovation of enterprise business models, and attempts to provide ideas for the change of existing business models. Through the basic science research of Tencent's official, it could be found that the official operation model is roughly divided into three parts: Internet technology value-added services, mobile communication value-added services, and Internet advertising. The sales market began to be occupied by the official QQ of Tencent, and a large number of visitors were attracted, resulting in a fixed customer base. By maintaining a high number of hits and popularity, further development of other regions was carried out to gain profits. Tencent officials know their customer base well enough to provide them with a satisfactory service, no matter where the customer is. Most of Tencent's official business processes are aimed at the younger demographic. Taking advantage of customers' blind comparisons, curiosity, and other psychology, they deduct specific fees from various Unicom value-added services to gain profits.